We automatically allocate payments in your best interest. Payments will go towards the plans currently incurring interest, then to the next plan due to incur interest – highest to lowest. If you change this, you may have outstanding balances when your interest free periods expire and begin to incur interest on those balances.
Paying the closing balance or “Optional payment to reduce further interest” amount on your credit card statement each month is the easiest way to reduce unnecessary fees and interest, but we understand that it isn’t always possible. We want to make sure you understand how your repayments are applied to any outstanding balances on your account.
Breakdown on how Gem applies your repayment to the balances on your account:
We’ll allocate your payment to the balances that are attracting the highest rate of interest and ensure any minimum monthly payments are met first.
- General purchases, any cash advances, any expired promotional plans, and any fees & charges or insurance premiums (if applicable) will require a minimum monthly payment of 3% of the owing balance (in total - or $20, whichever is greater).
- For our standard interest free terms, each purchase requires a minimum monthly payment of 3% of the owing balance (in total - or $20, whichever is greater).
- For instalment interest free terms, a fixed monthly payment is required in order to have this paid off by the interest free expiry date.
- For deferred/Buy Now Pay Later terms, these do not require any monthly payments, so no payments will be allocated to this for the duration of the term, unless requested by you.
Should you still wish to allocate a payment differently to the above, please call us on 0800 500 505 to request a payment re-allocation over the phone with one of our agents.