How are payments distributed on credit card balance?

Let's say Joe has a credit card that has an APR of 8% on purchases and an APR of 20% on Promotional Cash. There is a $3000 balance in each balance category for a total of $6000 balance on the card.





Joe pays more than the minimum each month on his card ($200). Where is this $200 going? How is this $200 distributed amongst the 2 category balances including interest?|||All credit card companies, apply payments to the lowest APR first. That way they make more interest every month.





That is why unless you have a zero balance, those "guaranteed rate" checks you get are so horrible. Sure, they will be glad to lend you $10,000 at 4%, what they don't tell you is the $5,000 you already have on the card, will continue to accrue interest at the higher rate until the entire $10,000 is paid off.





They ALWAYS apply it in the way that makes them the most money, always.|||The last thing your purchased is the 1st thing paid for.


NEVER EVER use cash withdrawal on a credit card, you will NEVER pay it off unless you pay the entire card off.


They alway pay off the credit first and the cash last.


That is how they get you.