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Penalty APR

Financial term in the General category

Definition

A higher interest rate (up to 29.99%) applied when you make late payments or violate card terms. Can apply indefinitely until six consecutive on-time payments are made.

Related Terms

Late Fee

A penalty charged when the minimum payment isn't received by the due date. Can be up to $41 for repeated late payments. Also triggers penalty APR and damages credit score.

Frequently Asked Questions

What is Penalty APR?

A higher interest rate (up to 29.99%) applied when you make late payments or violate card terms. Can apply indefinitely until six consecutive on-time payments are made.

Why is Penalty APR important in personal finance?

Penalty APR is an important general concept that helps individuals make better financial decisions. Understanding Penalty APR can improve your financial planning and help you achieve your money goals.

How does Penalty APR relate to Late Fee?

Penalty APR and Late Fee are related financial concepts. A penalty charged when the minimum payment isn't received by the due date. Can be up to $41 for repeated late payments. Also triggers penalty APR and damages credit score.

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