Credit card rewards can add up fast and give you some amazing benefits. Some of the better-known perks are things like trips paid for with travel points or cold hard cash rewards. Who wouldn’t want to cash in on these perks? It’s free money!
However, the most common reason that people (including me) have held back on earning credit card rewards is a fear of accumulating a massive credit card debt that will burden you forever.
The hardest part of maximizing your credit card rewards is managing all of your different cards and remembering to make your payments on time.
You can easily ensure that you avoid paying interest by utilizing the built-in grace period of your card. The grace period is usually between 21 and 27 days long.
It starts at the end of your billing cycle and ends at the due date of that billing cycle, this gives you some time to pay your balance in full. As long as you pay the balance in full by the end of the grace period, you can easily avoid any interest payments.
With multiple cards to manage, it can be difficult to keep track of all the due dates associated with each card. If you forget a due date or two, then you will miss the grace period and it can be all too easy for interest to start adding up.
Plus, if you’ve ever carried a balance on your credit card, it may take two consecutive months of paying in full to reinstate your grace period. During the time you are without a grace period, interest applies from the day your transactions post.
Shouldn’t there be an easier way to maximize your credit card rewards without paying interest?
There are two great options to check out below.
How to Get Credit Card Rewards Without Paying Interest
Debx is a solution to effectively managing your credit card rewards without ever having to pay interest. It’s a personal finance app that allows you to set up automatic payments to pay off your everyday credit card purchases as you make them.
The automatic payments allow you to collect your rewards without dreading a huge bill at the end of the month or worrying about going into debt.
Debx stands out because of its level of transparency. The founder of the company provides his personal cell phone on the app as well as on the website.
Debx also has an overdraft protection guarantee to its users, which makes it the first app of its kind to back up its technology. That means you never have to worry about spending money you don’t have. You’ll be alerted when you’re approaching your shutoff amount, which alerts Debx to stop making payments to avoid overdraft.
The app helps to keep all of your card information extremely accessible to you. You will no longer have to switch between multiple apps to see your available balances, everything will all be compiled in the Debx app.
The app also lets you know about events happening in your bank account. Through its smart notification system, you will be alerted for payments made, bill due dates, and rewards you’re earning.
In the future, Debx will allow you to track all of your rewards in one place as well as provide you with information on the best financial products based on your spending habits.
Best Features for Current Credit Card Users
Debx saves you from the hassle of penalties that might otherwise happen more frequently. The app ensures protection against late payment fees and overdraft fees because of the automatic payment system that Debx uses.
Debx will also help you to keep your credit score high by keeping your credit utilization at or below 10% all month. Your credit utilization rate can have a large impact on your credit score and if you only pay off your card once a month, this number is probably higher than you would like it. That’s because when the bill is due, and when you likely pay it, is probably not the same time of month when your utilization is reported to the credit bureaus.
One of the best features is that you don’t have to pay each monthly bill as it appears each month. The app will simply pay off your credit card charges throughout the month to avoid a big bill or interest fees.
This is a hugely important feature because you will never have to worry about missing a credit card payment again, the payments will just happen automatically through the app.
Best Features for Future Credit Card Users
Debx is great even if you usually use your debit card because you might prefer to start earning rewards for your spending, then Debx is a great tool for you. Plus, you can also work to build your credit score with responsible credit usage.
It will help you to shift your responsible spending from debit to credit. As you spend more on credit cards, the rewards will pour in and your credit score will increase. You won’t feel nervous about using your credit card because it is easy to make your payments on time.
The Debx app will also allow you to see your true balance, which is very important if you are considering making a purchase. The app subtracts all planned payments from your current balance to give you a True Checking Balance that is good to know.
It is very simple to sign up for Debx. You will not have to provide any of your personal information and it will only take 90 seconds. You can find out more on their website.
Debitize (Bought By Trim)
Debitize is another app that will help you to manage your credit cards effectively and avoid costly interest payments.
The way this works is that Debitize will pay off your cards on a monthly basis. You can also upgrade to weekly payments for a fee of $4.99/month.
The app is easy to use and can be a good way to manage your cards with confidence.
However, they do require you to set up a new Debitize checking account, where they will store your money as they withdraw it from your external checking account. The money from the Debitize checking account will them be used to pay your bill on the day you’ve chosen.
Other Ways to Avoid Paying Interest on Credit Cards
The simplest way to ensure you don’t incur any interest on your credit cards is to pay off the entire card every single month. It can be tempting to let some of the balance roll over because it is technically not due yet, but that is a dangerous habit.
Once you let your balance roll over once, you may end up letting it roll until you have a large amount of credit card debt following you around.
The other option is to use a credit card with a 0% APR. These cards don’t have any interest to worry about if you carry a balance, as long as you pay it off in full before the end of the introductory period, after which the 0% APR expires.
In general credit cards can be good financial tools, if used appropriately. Responsible credit card use can allow you to build a good credit score and maximize your spending through rewards. Most credit cards also offer additional consumer protections that can help prevent any unauthorized credit card activity on your account, which provides additional peace of mind.
You might be a recent college grad trying to build a credit score while staying out of debt. Or maybe you are just a travel junkie who cannot get enough rewards, ever.
Whoever you are, avoiding interest payments is always a good idea.
Which tools will you use to avoid paying interest on your credit cards?