Cc payment order, again…

Shibzxsx

Just checking… when the cc terms say it the balance with the higher interest rate will be paid first, the take a 0% as 0% (so pay it last), not the rate it will be when the promotion has ended?

DullGreyGuy

Shibzxsx said:

Just checking… when the cc terms say it the balance with the higher interest rate will be paid first, the take a 0% as 0% (so pay it last), not the rate it will be when the promotion has ended?

The regulations require the payment to be put towards the statemented balance with the highest current interest rate. 

The T&Cs will determine how payments are applied where multiple balances have the same interest rate, most commonly its to the first incurred balance but not always. 

Shibzxsx

DullGreyGuy said:

Shibzxsx said:

Just checking… when the cc terms say it the balance with the higher interest rate will be paid first, the take a 0% as 0% (so pay it last), not the rate it will be when the promotion has ended?

The regulations require the payment to be put towards the statemented balance with the highest current interest rate. 

The T&Cs will determine how payments are applied where multiple balances have the same interest rate, most commonly its to the first incurred balance but not always. 

Thanks. It will pay off the higher interest first, then money transfers (rather than balance transfers like some) if everything is at the same interest rate. Guess I just wanted to clarify that they don’t go on what the interest rate will be after a promotion, and that during the promotion 0% is 0%. 

Example 
balance 1 at 24.4% interest 
balance 2 at 0% interest then 22.4% after promotion 

They’ll pay balance 2 first, then after the promotion ends they’ll start clearing balance 1 as the priority, yes?

Shibzxsx

Example 
balance 1 at 22.4% interest 
balance 2 at 0% interest then 24.4% after promotion 

They’ll pay balance 2 first, then after the promotion ends they’ll start clearing balance 1 as the priority, yes?

Sorry I’m confusing myself 😅 

in the example above, they’ll pay off balance 1 first, then balance 2, then switch over

grumpy_codger

It's the current interest that matters.

DullGreyGuy

Shibzxsx said:

Example 
balance 1 at 22.4% interest 
balance 2 at 0% interest then 24.4% after promotion 

They’ll pay balance 2 first, then after the promotion ends they’ll start clearing balance 1 as the priority, yes?

Sorry I’m confusing myself 😅 

in the example above, they’ll pay off balance 1 first, then balance 2, then switch over

Yes, wasnt the best example possible 

Dont over think it, look at the statement, what's on that at the highest interest will have the payment credited to it. 

molerat

Which particular card is it ?

When multiple offers are at the same rate some cards will pay the first started whilst others will pay off the first ending offer.  There are no set rules over that, only that statemented highest interest items must be paid first.