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Penalty APR
Explanation:
The interest rate assessed on a credit card, which is in default. Penalty APRs are usually above 20 percent and apply to the entire credit card balance. For consumer and student credit cards, you are considered to be in default if you are more than 60 days late in paying your bill.
For small business credit cards, the definition of whether you are in default or not varies between credit card companies. For some credit card companies, having missed a payment and/or having gone over-the-credit-limit can be considered as being in default.
Some cards have a range for the Penalty APR, the max of which is referred to as a 'Max Penalty APR' and may be applied based on your creditworthiness and other factors. There may also be a different Penalty APR for cash advances, which is referred to as the 'Cash Penalty APR' and is usually higher than the Penalty APR applied to purchases and balance transfers.