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If you have different balances with different rates on the same credit card can you choose which to pay down first? |
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As far as I know, there is no law about this, and it will be governed by your agreement with the credit card company. It will be in the fine print. The interest rate. You will pay off that entire balance before starting to payoff the next lowest balance. This is the situation with my own credit cards. It's rather sleazy, but I don't think it's illegal.
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No. They pay down the lower APR balances first. Every credit card I've had, has said this in the agreement.
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It depends on the credit card agreement. As was already said, it will be in fine print, or in one of the revisions that they send you with you bill that usually gets thrown away. I always pay my credit cards off every month, avoiding interest. However, earlier this year I was in a pinch and used by business card for a cash advance at a lower promotional apr. I also charge regular monthly charges as well. I paid the total monthly charges, plus an extra $300 per month toward the cash advance. The problem was that the credit card company charged me the high apr for the purchases and never paid them off. I called and complained and they did nothing about it. So be VERY CAREFUL in taking promotional cash advances! They should ONLY be used for accounts that you will otherwise not use and currently have a zero balance.
First answer by anonymous. Last edit by ID3489655863. Question popularity: 198 [recommend question]
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