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Universal Default
Explanation:
Refers to the practice of considering someone in default on a loan or credit card due to late payments or defaults on an unrelated credit card, loan or bill.
Example:
Imagine you have a credit card and a mortgage. If your credit card company practiced universal default and you missed a payment on your mortgage, then the interest rate on your credit card would automatically increase to the Penalty/Default APR even though, for the purposes of this example, you have not missed a payment on the card.