Common use of Payment - Minimum Amount and Allocation Clause in Contracts

Payment - Minimum Amount and Allocation. If you elect not to pay your New Balance in full, you must make a payment according to the following schedule on or before the due date shown on your statement. If the New Balance is less than $25, your minimum payment will be the full balance; if this balance is $25 to $1,000 your minimum payment will be $25; if this balance is more than $1,000 your minimum payment will be 2½% of this balance rounded down to the nearest whole dollar. A credit posting from a merchant or reversal of fees do not constitute any part of a minimum payment. The minimum payment will be allocated at BECU’s discretion to pay off lower rate balances, such as promotional offers, before higher rate balances, such as Cash Advances or Purchases. Payments in excess of the minimum payment will be allocated to pay off higher rate balances first. All outstanding balances from the previous month’s statement must be fully paid before any part of a payment will be applied to transactions that occurred during the current billing cycle. From time to time, we may allow you to skip your Minimum Periodic Payment due. If you choose to skip that payment, FINANCE CHARGES, and voluntary payment protection costs, if any, will continue to accrue in accordance with this Agreement.