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How does my credit card issuer decide how to apply my payment when I send more than the minimum amount due?

If you have transactions to which different rates of interest are applied—for example, balance transfers, cash advances and purchases—the card issuer must apply any excess payment to those balances with the higher interest rates first. This makes it possible to pay off your debt more quickly than if the extra money were applied to the lower-interest rate balances first.

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How does my credit card issuer decide how to apply my payment when I send more than the minimum amount due?


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