Understanding the new credit card rules
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If you had balances with different interest rates, it used to be the case that your issuer could apply your payment to your balances in whatever order it wished. So, if you had a balance transfer debt at a low introductory rate and a purchase debt at a higher rate, the issuer could apply your payment to the balance transfer debt first to maximize interest charges.

The new payment allocation rule in the CARD Act requires issuers to apply any payment above the minimum to the balance with the highest interest rate first, then to the balance with the next highest rate and so on until the payment is exhausted. To take advantage of this provision, you have to pay more than the minimum amount due.




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Product Rate Change Last week
Balance Transfer Cards 16.23% --0.00 16.23%
Cash Back Cards 16.48%  0.07 16.55%
Low Interest Cards 11.51%  0.08 11.59%
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