Common use of HOW WE APPLY PAYMENTS Clause in Contracts

HOW WE APPLY PAYMENTS. When we receive a payment from you, we use that payment to pay off your Account balance in the following order: minimum payment due, then (1) fees; (2) insurance; (3) interest; (4) amounts subject to interest; (5) amounts subject to deferred interest; and (6) non- interest bearing amounts. Amounts owing subject to a promotion will be paid in order of the highest promotional interest rate to the lowest promotional interest rate, except where an amount subject to a deferred interest promotion is expiring within the next two billing cycles, in which case such amount will take precedence.