Common use of How We Apply Payments and Credits Clause in Contracts

How We Apply Payments and Credits. If you have a Pay Over Time balance, we generally apply payments--up to the Minimum Payment Due--first to the Pay Over Time Minimum Due and then to the Pay In Full New Balance. When applying a payment to the Pay Over Time Minimum Due, we apply it first to the balance with the lowest interest rate and then to balances with higher interest rates. After the Minimum Payment Due has been paid, we apply payments to the remaining Pay Over Time balance, first to the balance with the highest interest rate and then to balances with lower interest rates. In most cases, we apply a credit to the same balance as the related charge. We may apply payments and credits within balances, and among balances with the same interest rate, in any order we choose.