Which of the following is a penalty charged when you do not pay the minimum due by the due date?

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Multiple Choice

Which of the following is a penalty charged when you do not pay the minimum due by the due date?

Explanation:
Missing the due date triggers a late payment fee. This penalty is designed to deter late payments and is separate from any interest charges that may apply to carried balances. The late fee is not the annual fee (which is charged regardless of payment timing), not the interest rate (the cost of borrowing), and not an overlimit fee (which applies if you exceed your credit limit). So the penalty when you don’t pay the minimum due on time is a late fee.

Missing the due date triggers a late payment fee. This penalty is designed to deter late payments and is separate from any interest charges that may apply to carried balances. The late fee is not the annual fee (which is charged regardless of payment timing), not the interest rate (the cost of borrowing), and not an overlimit fee (which applies if you exceed your credit limit). So the penalty when you don’t pay the minimum due on time is a late fee.

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