High interest now paid off first for AA Credit Card customers

AA Credit Card customers now benefit from a change to the way payments are allocated to their credit card balance.

From 1st September, repayments to the AA's Reward Credit Card that don't pay off the full balance go towards paying off balances with the highest interest rates first.  This means that balances with lower interest rates, such as the current online 12-month introductory 0 per cent on purchases, are paid off last.

This comes four months ahead of the deadline for changes announced by the Government earlier this year.

Mark Huggins, director of AA Financial Services says this is a positive move that will save money for many customers who have balances at different rates.

"The system changes necessary to enable this to happen have been under development for some months and were scheduled to be introduced now, regardless of the Government's announcement.  It means that AA customers can enjoy this change sooner.

"This is a vital step towards helping millions of card holders to manage their debt.  It is a change that the AA wholeheartedly endorses."

AA Credit Card customers have already been informed of this positive change to the way their account is managed.

The AA Credit Card also offers one of the UK's leading reward systems, in which motoring purchases attract double points and AA Members earn at twice the rate of non-members.