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Credit Cards (in the US)

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HaRuMaN:
I know the laws regarding credit cards has changed recently, and am not sure how they work anymore.

I have a card that has a balance at 0% APR (it was a transfer).  If I currently make a purchase on that card, it will be at the normal 7.99% APR.

So, if I make a purchase (@7.99%) and still have some of the zero APR balance on there, and go to make a payment, which gets paid first?

Donkbaca:
I believe the lower interest rate gets paid first

jamesjones626:

--- Quote from: HarumaN on March 15, 2011, 02:47:14 pm ---I know the laws regarding credit cards has changed recently, and am not sure how they work anymore.

I have a card that has a balance at 0% APR (it was a transfer).  If I currently make a purchase on that card, it will be at the normal 7.99% APR.

So, if I make a purchase (@7.99%) and still have some of the zero APR balance on there, and go to make a payment, which gets paid first?

--- End quote ---
sounds like a question out of a math book.

Dervacumen:
I assure you whatever is in the banks best interest is what gets paid first.  Certainly nothing that could even remotely benefit you. :soapbox:

Hoopz:

--- Quote ---Highest interest balances paid first: When consumers have accounts that carry different interest rates for different types of purchases (i.e., cash advances, regular purchases, balance transfers or ATM withdrawals), payments in excess of the minimum amount due must go to balances with higher interest rates first. Common practice in the industry had been to apply all amounts over the minimum monthly payments to the lowest-interest balances first -- thus extending the time it takes to pay off higher-interest rate balances.

--- End quote ---

The rules were changed so that the consumer would not be automatically disadvantaged by the banks' rules.  That's why banks are doing everything possible to come up with new/different fees to charge consumers.  They are losing money quickly over these new changes so they have to find new income streams.

http://www.creditcards.com/credit-card-news/help/what-the-new-credit-card-rules-mean-6000.php

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