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When we take out credit a credit card, the purpose should be necessity. We should not have the attitude of taking out credit without any important reason or just for our luxury. We should be responsible creditors and we should know how to take care of our credit history. it is also important that we know how our credit cards work. This is to avoid paying over than what we owe. There are a lot of fees attached to credit card so we should know how to make the most out of our credit.

Is a finance charge necessary?

It is given that having finance charges is how our credit card providers profit from us. They are a business. They will lend you money for a price and that is having finance charges or interest on your debt. It is not mandatory though since there are times that banks do not charge it under certain circumstances but we have to understand that they also shed some when they give lend us some money. But of course, we have to make sure that the calculation is just right. We do not want to overpay just for them to profit.

How Can I avoid Finance Charges?

Yes you can avoid finance charges. There are some credit card providers that waive the finance charge if the customer is able to payoff their balance at the end of the month or their billing date. Let us say for example, with all the purchases and transactions that you made with your card the total for one billing cycle is $1000. You have to make sure that you zero it out because at the end of a billing cycle and they found no amount to charge interest to then you do not have to pay finance or interest fees.

Can I have a credit card with no interest?

It is impossible to have a credit card that has no interest fee throughout the usage of the card. There are some credit card companies though that offers a 0% initial interest for a period of six to twelve months to attract customers. This offer usually is given to people who have high credit scores so if you have an impressive credit score, you can take advantage of this offer. And if it is not restricted by your agreement with the credit card provider, you can close your account before the 0% offer is up and look for another company that offers a 0% or less.