What is the best way to avoid paying APR on a credit card?

• A. Make partial payments
• B. Pay the full amount by the due date
• C. Utilize cash advances
• D. Increase your credit limit

Answer: (B)

Paying the full amount by the due date is the best strategy to avoid paying APR on a credit card. Credit cards typically have a grace period during which no interest is charged on purchases if the balance is paid off in full by the due date. By settling the entire outstanding balance, you prevent any interest from accruing, which means you won't be subjected to APR charges.

Other options, such as making partial payments, can lead to interest being charged on the remaining balance, and cash advances often have higher interest rates and fees attached. Increasing your credit limit does not directly affect APR payments, as it does not eliminate the outstanding balance that incurs interest. Thus, ensuring the full amount is paid on time is the most effective method to avoid interest charges altogether.