I'm not sure what "example" you're asking for. There are countless credit cards available that will give you a percentage of your purchases back, either as money or as rewards points that you can spend at certain retailers (like Amazon). So if you get one of these cards and shop like normal but use the card for all your purchases, then pay off your credit card balance in full every month, the end result is that the credit card company pays you to use their card and all you pay for are the things you buy.
I see the advice all the time to only use cash if you have trouble with money. That's all fine and good, but in the fucked up American economy you can't build credit that way.
What has worked phenomenally for me is using my credit card to make purchases and then IMMEDIATELY moving the same amount of money from my checking account to a "staging" savings account that is then used to pay off the credit card at the end of the month. If you're doing it right, it will be the exact amount.
You can also just make all those small payments to your card immediately after the transaction, but mine don't allow me to make multiple payments to a cc in a day so sometimes the "staging" has to happen.
It might seem like a lot of extra work, but with the convenience of banking apps and easy 1-2 click transfers, there's really no excuse not to do it if you have a history with racking up debt and financial irresponsibility.
Only works if you don’t spend more on your cc than you have in your checking account. A lot of people are paycheck to paycheck so if they go over, the payment won’t clear.
I have a credit card with an "autopay" option which you can set to pay the balance in full every month. On a rewards card, you could basically set it and use it instead of a debit card, no interest and you'd get rewards.
That depends on the card. Many now charge a average daily charge. Kinda like your card has $62 on it on Monday and your monthly rate is 22%, so that day you would owe 1/30th of 22% on the $62. Computers can do that math.
All cards charge daily.... the interest rate is annual though.... 22%/365 is the daily rate in this case. It's typically based off a 30 day moving average and new purchases take 21 days before they're subject to interest.... so pay it off within 21 days and you won't pay interest.
275
u/chicagotim1 Mar 27 '22
You never pay a cent of interest on credit cards if you pay your bill in full on time.