NAB reforms credit card interest charges

NAB has changed the way interest is charged on credit card balances. NAB said in a statement yesterday that from 14 January 2011, NAB will change the way that payments are allocated to your account, reducing the overall interest cost to many customers. NAB will ensure that we will apply your payments to your card against balances that attract a higher interest rate before balances that attract a lower interest rate (after interest, fees and charges).

We will continue to pay off amounts that have appeared on a statement before paying off amounts that have not yet appeared on a statement. We’ll also ensure that for balance transfers that expire from 14 January 2011, any outstanding balance transfer amounts will then be treated as a purchase rather than a cash advance.

Source: NAB