Highest interest balances paid first?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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Highest interest balances paid first?

Postby nachtliche » Sat Aug 24, 2013 2:20 pm

I have balances at two different rates on my Citi credit card, 0% that expires 11/01/13, and 1.99% until paid in full. I want to keep the 1.99% balance, but pay off the 0% once it expires. Maybe this is a dumb question but if I make a large payment on 11/02/13, does that mean any amount over the minimum will pay off the formerly 0% balance? I want to avoid paying off the 1.99% balance. My statement ending date is the 14th, and due date the 9th, is there any trickery with the payment timing?

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Postby takeshi » Sat Aug 24, 2013 5:06 pm

IIRC the CARD Act of 2009 forces card companies to apply any payment over the minimum to balances with the highest interest rate first.

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Postby DavidNY » Sat Aug 24, 2013 10:11 pm

takeshi recalls correctly, though you could also ask Citibank.

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Postby spike1856 » Mon Aug 26, 2013 6:41 pm

So, just in case it wasn't clear from those posts, your plan sounds good. If you make a payment today, it goes to the 1.99% balance. If you wait until after the 0% balance converts to its new rate, assuming that the new rate is higher than 1.99% anyway, your payments will then apply to that balance first.

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