Finance
How credit cards actually work (and how to never pay interest)
Statement cycle, due date, grace period, interest calculation, and the simple habits that turn cards into pure rewards engines.
The cycle
Statement date → Grace period (≈20 days) → Due date.
If you pay the full statement balance by the due date, you pay zero interest. Forever.
Where people lose
Paying “minimum due” → interest starts accruing from the transaction date, not the due date. APR is 36–42%.
Reward optimization rules
- Use the best card per category (Elevatools CC Optimizer suggests).
- Set autopay for the full statement balance.
- Never use 50%+ of your limit — it hurts your credit score.
- Close cards only after rotating to a new one with a higher limit.
Avoiding the trap
- Use a debit card for impulse purchases.
- Track utilization weekly during the cycle.
- Foreign markup: 3.5% — use a no-markup card for international spend.
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