The term that describes higher costs for using a card after delinquency is:

• A. Intro APR
• B. Standard APR
• C. Purchase APR
• D. Penalty APR

Answer: (D)

Penalty APR is the higher interest rate a card issuer can apply when you become delinquent, such as missing a payment. This steeper rate reflects the increased risk the lender sees and serves to encourage bringing the account back current. It often applies to new purchases and existing balances once triggered, and the exact terms vary by issuer. This makes carrying a balance more expensive after delinquency. In contrast, the introductory APR is a temporary promotional rate for new purchases, the standard APR is the normal ongoing rate when you’re current, and the purchase APR is the rate charged on purchases under normal terms.