KnowYourCard text logo
KnowYourCard text logo

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 the portion of the balance with the highest interest rate 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, and it saves you money on monthly finance charges.


RatingRatingRatingRatingRating
(4/5) based on 2
Rate this Post

Rate This Response

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


Read Next: What is the difference between a credit card and a charge card?


Tags/Keywords