How To Avoid Finance Charges On Your Credit Card?

by Garima Sharma

A Credit Card Finance Charge is an interest fee that you have to pay to the card issuer on the money you have borrowed. It is also called a convenience fee or a finance charge. 

How it is Calculated?

It is generally calculated using the :

  • APR i.e. Annual Percentage Rate (mentioned in the card-issuing agreement)
  • Amount of money owed to the issuer and
  • The respective time period under consideration.

Methods to Avoid Paying Finance Charges on your Credit Card

  • Clear your credit card balance dues in full on a regular basis, without waiting for the expiration of the credit card’s grace period given to clear the dues. The grace period is mentioned on the credit card billing statement that you receive. In most cases, it ranges from 21-25 days.
  • In case you need credit card balance, then there are a lot of options i.e credit cards in the market that offer 0% APR for a specific time period. The time period ranges from 12 months to sometimes 21 months. Due to ever-increasing competition in the credit card industry, do check out for the best available & suitable option.
  • Take the route of balance transfer cards with 0% APR to avoid finance charges.


Finance charges are something that should be avoided at first, but in case you cannot avoid them, then make use of above-provided techniques alongside the best offers available in the market to get out of the situation.


Read More: Credit Card: Modern Way Of Payment

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