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How You Can Avoid Paying the Interest and Enjoy Your Credit Card for Free?

As per reports in the financial year 2018-2019, around Rs.6 lakh crore was spent through credit cards. Further, the report highlighted an increase of 30% when compared to the preceding financial year. Both signify the growing popularity of credit cards as a potent instant payment tool.

Though credit cards increase the users’ purchasing power, they also tend to increase their debt burden in case of default. Consequently, as a means to keep the debt burden manageable, credit card users should try to avoid attracting credit card interest rates by making timely repayments.

Subsequently, to ensure the same, they must manage their expenses efficiently and streamline payment of credit card bills smartly.

Tips to avoid credit card interest

In a broader sense, the best way to eliminate the risk of accumulating interest on outstanding dues is to know how to repay your credit card debt strategically.

For example, the following highlights the tricks to avoid the same effectively –

Paying credit card bills within payment due date

By following this technique, credit card users would be successful in avoiding credit card interest rates. Additionally, they would be able to enhance their credit score and credit history significantly.

Monitor credit utilisation ratio

Also, by monitoring one’s credit utilisation ratio, card users would be able to keep their expenses within feasible limits. To elaborate, they should ensure their credit utilisation ratio is below 60%. Consequently, this will enhance their CIBIL ratings and help repay credit card debts easily. In turn, it would help to repay the same on time without paying any interest rates.

Use the grace period

Technically, a grace period is the time during which cardholders can repay the credit amount they availed through the card without attracting interest charges on it. Credit card users can take advantage of this period and plan their payment smartly.

Making bigger transactions at the beginning

Likewise, credit cardholders should plan their purchases smartly. For instance, they should make bigger transactions at the beginning of their billing cycle. Doing so gives them ample time to arrange for the required funds conveniently. Also, it will help avoid the implications of high credit card interest rates.

Opt for easy repayment option

Similarly, by opting for a credit card like the RBL Credit Card that comes with an easy repayment option, cardholders can avoid the interest burden for not paying the outstanding. To elaborate, easy repayment options will streamline the repayment process and eliminate the risk of default.

Additionally, cardholders should make it a point to review their credit card statement carefully. By doing so, they would be able to keep an informed track of their expenses and also identify transactional errors easily. In turn, it would help eliminate the risk of bearing the burden of unwarranted interest rising from incorrect transactions. However, if card users fail to avoid interest burden entirely, they should look for ways to reduce credit card interest rates.

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