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7

Right. It's fine to use a credit card for the insurance and liability protections but that means paying it off completely, every month (I usually pay off my credit cards twice a month.)
– JimmyJames
Commented Apr 25, 2023 at 16:48
25

This is the key. I have no idea what the interest rates on my credit cards are. Because it doesn't matter! You just pay them all off every month, and there's zero interest.
– codeMonkey
Commented Apr 25, 2023 at 19:28
1

@codeMonkey: Same here pretty much. I've paid interest a few times by mistake. Only time I complained was when they wanted several dollars interest on 94 cents. On the other hand while several dollars interest on twenty dollars (I misread the bill) is steep it was not worth being a pain about.
– Joshua
Commented Apr 26, 2023 at 1:45
2

"When you carry a balance there is no grace period. Every time you use the card, that transaction is added to the balance that is charged interest." I think this is an oversimplification. On the two main cards I use, there is no need to take the balance all the way to zero as long as the total of payments made before the due date meets or exceeds the prior month's statement balance. That is, in one sense, the same as paying it off, but in another sense, it isn't, because on any given day, the account balance is never all the way down to $0, yet I pay no interest.
– Michael - sqlbot
Commented Apr 27, 2023 at 3:06
1

@Michael-sqlbot You pay the statement balance to zero. It doesn't matter if something more has come in since the statement date. I'm like codeMonkey--no idea what the interest rate is because I don't ever carry a balance.
– Loren Pechtel
Commented May 1, 2023 at 2:48

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