Credit Card Glossary: Terms and Definitions
The penalty rate, also called the default rate, is the very high interest rate charged by the credit card issuer when a borrower violates the card’s terms and conditions. The penalty rate is triggered most often when cardholders are late making monthly payments. This penalty rate can be lowered — or “cured” — if the account holder makes six consecutive on-time payments immediately following the late payment.
Terms from A-Z
Search the CreditCards.com glossary for every credit-related term from "account holder" to "zombie debt." Select a letter for alphabetized terms and definitions.