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• The APR charged on new transactions if you trigger the penalty terms in your credit card contract. Your credit card issuer may consider you in default if you pay late, go over your credit limit, or if your check is returned. These rates usually are higher than your standard or introductory rates. If you become more than sixty days late, the penalty APR may be applied to your existing balance.

  Board of Governors of the Federal Reserve System - Cite This Source - This Definition
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  Cite Definition for Penalty APR

  American Psychological Association (APA)

  Penalty APR. (n.d.). Credit Card Consumer's Guide. Retrieved February 3, 2023, from website: http://www.expertglossary.com/definition/penalty-apr.

  Chicago Manual of Style (CMS)

  Penalty APR. www.federalreserve.gov. Credit Card Consumer's Guide. Board of Governors of the Federal Reserve System. http://www.expertglossary.com/definition/penalty-apr (accessed: February 3, 2023).

  Modern Language Association (MLA)

  "Penalty APR." Credit Card Consumer's Guide. Board of Governors of the Federal Reserve System. 3 February. 2023 http://www.expertglossary.com/definition/penalty-apr.

• Browse Related Terms: "Go-to" rate, Average daily balance method with compounding, Average daily balance method without compounding, balance, Daily balance method with compounding, Daily balance method without compounding, Daily periodic rate (DPR), Default APR, Interest-free period, Introductory APR, Penalty APR, Periodic rate, Purchase APR