Payments

What order are my payments applied in?

When you make a payment, it does not all simply come off "the balance" — it is allocated across the different things you owe in a defined order. Understanding that order helps you read your statement and see the effect of a payment.

The usual order

A payment is typically applied to any charges and interest due first, then to reducing the outstanding principal. So on an interest-bearing facility, part of each scheduled repayment covers the period's interest and the rest reduces what you borrowed. See how payments are allocated to your balance and how partial payments are allocated.

Why it matters for overpayments

An overpayment, once any due charges are covered, reduces the principal — which is why it lowers future interest. See how overpayments are applied and does an overpayment reduce my payment or term.

Seeing it on your statement

Your statement shows the split so you can follow it. See what your statement shows about interest and the difference between interest and fees.

Credicorp lends to companies rather than to you personally, so this is business finance outside the consumer-credit regime. That does not change the practical steps below.

See also: How payments are allocated to your balance, How partial payments are allocated, How overpayments are applied.

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