How do I use iTunes Store balance to buy an App on my iPhone?

I have a balance in my iTunes Store account and want to purchase an App on my iPhone.  When I try to purchase an App it does not see my balance and wants to charge a credit card.  How do I use those funds?

What exactly do you see when trying to buy the app, what messages/prompts show on the screen ? If you have a balance on your account then that should automatically be used for the purchase (unless you are trying to gift it), you can't specify how items are billed. Is this the first time that you've tried to buy something in the stores, or have you moved countries ? Even though you might be being asked for card details it doesn't necessarily mean that it will be charged (apart from a temporary store holding charge, which the card issuer should remove within a few days or so)

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