Are credit card payments applied to oldest balance or lowest or highest interest?

Question

Are credit card payments applied to oldest balance or lowest or highest interest?

Which way does it go?

Anyone know in particular about WAMU (Providian) credit card payments?

Thanks!

Answer 1

Typically the payment goes to the oldest balance but you can check the fine print of your user agreement to find out if that's what your card does.

Answer 2

The bank sets the rules for how payments are applied. They make more money if the lowest interest balances are paid first. I'm not familiar with WAMU, but every card I've ever had applied payments in the following order:
First fees (such as over-the-limit or late fees) are paid.
Next finance charges (interest) is paid.
Finally, any additional payments are applied to the balance with the lowest rate first.

patty I's answer appears to imply part of the payment is applied to each balance category with the highest percentage applying to the lowest rate balance. My understanding is that the lowest rate balance would be paid in full before any payment was applied to higher rate balances.

Answer 3

Payments are applied with a formula to give the largest percentage of your money toward the lowest interest regardless of the age of the debt. If you already owed $ 1000.00 @ 16% interest, then did a special balance transfer for $ 2500 @ 3.99%, the bulk of your payment would go to reduce the low interest charge. The high rate is meant to continue the longest.

Answer 4

you're maxed out on maximum of your enjoying cards. in case you omit one or 2 minimum money, the int fee will positioned your stability over the minimize and your activity will skyrocket. a million. Assuming the $2K verify is a one-time deal and not month-to-month. Why would not you employ greater to pay down the debt? it is going to take you greater suitable than 2 years to pay down your debt in case you employ merely $1K and pay the minimums. it is going to take 15-18mos in case you employ all the $2K, and according to danger much less time than that in case you employ the different present$ you get interior the subsequent 18 mos. 2. regularly, paying the main you are able to on the better int card may be the proper direction. Then thke the completed quantity you have been paying on card a million (Chase) and upload it to the charge on the cardboard with next optimal int fee (Wells Fargo). proceed until paid OFF. 3. you may have the potential to get a consolidation very own loan (probable ought to have mom/Dad co-sign): Get thee to a credit union. Take your credit enjoying cards with you. Ask for an extremely low fee consolidation very own loan and grant the enjoying cards to be decrease up. Pay down the debt and be taught to no longer run up a credit card stability. good success.

Answer 5

I doubt this is feasible

Answer 6

I think it depends