5 Effective Ways to Reduce Your Credit Card Interest

Credit Card

Credit card interest could be a big bump when you are trying to fix your credit. One may argue that there are balance transfer credit cards available that help you move your balance from a higher interest rate card to a low-interest one. But, even though they may be of great value, you should deal with your credit card interest smartly by following some simple steps.

1. Make multiple payments monthly

As your credit card issues a monthly statement with a minimum payment and the due date, you should aim at not only exceeding the minimum amount but also making more than one payment every month.

Credit cards incur interest on the average daily balance of your account. Therefore, the more you make regular payments, the less is your average daily balance which will offset your interest.

2. Pay off your balance early

If you cannot make multiple payments throughout the month, you should at least try paying off your credit card statement a week prior to its due date. This will save you some money in the long run and the average daily balance will also reduce the day your payment gets reported.

3. Make big purchases at the right time

You can exclude interest charges on your credit card by paying the balance in full every month. However, if you feel that this may not be the case next month, you should bring a small trick into play. Postpone your major purchases after the credit card statement is issued. This will give you that extra time to gather funds to pay your balance as these transactions will appear on your next statement.

4. Maintain a “clean card”

If you carry a small balance past the due date on your credit card, you will incur less interest. In order to do so, you should bifurcate your balance into more than one cards. For instance, instead of trying to pay the balance of $500 on one card, you should use two cards to get the amount owing of $250 on each. In this way, you will minimize your interest in total significantly.

5. Request a lower interest rate

The interest rate on your credit card is set on your creditworthiness and previous payment history. If you had a bad time with credit in the past, you would have received a high-interest rate. But, being consistent with your payments may have changed your credit situation, hence, you can enjoy lower interests. Therefore, you should ask your credit issuer for better rates.


Even with undesired interest rates, many individuals choose the path of credit cards. The reason being it is one of the most convenient ways to bring your credit score up just like auto-financing. So, if you have any questions on how you can build your credit via auto-financing, click here or call us at 1-855-550-5565 to talk to a credit counselor.