How to avoid interest?

[takeshi74]

---

@kostyan1992 wrote:

I was reading up on how to avoid interest by paying in full within the "grace period" and got a little confused. First of all, when does interest begin accumilating?

---

 Generally after the grace period lapses for purchases.  For cash advances generally there is no grace period.  Check your terms to verify.

---

@kostyan1992 wrote:

I'm fairly new to credit cards (got my first one recently) and would like to show a utilization of below 10% while also not paying any interest, is this possible?

---

Absolutely.  All you need to do is pay in full every statement.  If your statement balance will exceed 10% then pay it down to 10% before the statement closes and the balance is reported.

---

@mattmix36 wrote:

---

For example, if your statement drops and reports that you owe $100, however you proceed to buy a five dollar burrito but only pay the $100 statement balance (not $105), I'm assuming you wouldn't accrue interest on this $5 until the next statement posts...is that correct?  Also, would that $5 report to the credit agencies...or would the $100 (or $0 if PIF before statement cut)? Prolly the most confusing way to ask this question--apologies!

---

It's pretty simple, really:

Whatever the balance is at statement end (assuming the card reports at statement end) is what reports.  Charges (and credits, fees, etc) after a statement ends are on the next statement.

[maiden_girl]

Simply put, pay your statement balance and you will not pay interest. You statement balance is the amount you charge previous billing cycle during the 25 or 31 day billing cycle. Pay the minimum payment, pay interest on the remaining amount.

[OnTheRebound]

It's very simple..

#1- If you want to avoid paying any interest, simply PIF the statement balance on or before the due date.

#2- If you want to manipulate your reported utilities, simply pay down/PIF your current balance before the statement cutoff date.

[sexy_kitten7]

---

@OnTheRebound wrote:

It's very simple..

#1- If you want to avoid paying any interest, simply PIF the statement balance on or before the due date.

#2- If you want to manipulate your reported utilities, simply pay down/PIF your current balance before the statement cutoff date.

---

Exactly.

For #1, you could set up autopay to PIF on the due date

For #2, you could set up autopay to PIF on the due date while also manually paying down most of the balance prior to the statement cut date.