A higher interest rate triggered by delinquency is called what?

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Multiple Choice

A higher interest rate triggered by delinquency is called what?

Explanation:
Penalty APR is the higher interest rate a lender can apply when you become delinquent on payments. It acts as a penalty for missing payments and is meant to reflect the increased risk to the lender. The other rates you see—Intro APR is a temporary promotional rate, Standard APR is the ongoing baseline rate, and Purchase APR is the rate charged on regular purchases—are not tied to delinquency. The penalty APR can be much higher and may apply to new purchases and/or existing balances depending on the card’s terms. To avoid it, keep payments current and be aware that some issuers will revert back to the normal rate after you stay on time for a set period.

Penalty APR is the higher interest rate a lender can apply when you become delinquent on payments. It acts as a penalty for missing payments and is meant to reflect the increased risk to the lender. The other rates you see—Intro APR is a temporary promotional rate, Standard APR is the ongoing baseline rate, and Purchase APR is the rate charged on regular purchases—are not tied to delinquency. The penalty APR can be much higher and may apply to new purchases and/or existing balances depending on the card’s terms. To avoid it, keep payments current and be aware that some issuers will revert back to the normal rate after you stay on time for a set period.

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