What is a penalty rate?
The Bankrate.com financial term of the day is: "Penalty Rate"
If you're one of those people who can never remember to pay credit card bills on time, your plastic can be a lot pricier. Credit cards come with a higher penalty rate that replaces the usual interest rate, typically after a couple of late payments, though sometimes all it takes is just one. The penalty rate will be several points higher than the card's ordinary annual percentage rate.
Being fashionably late with your credit card can be a style disaster for your bank account because tardiness can trigger the card's more expensive penalty rate.
To shop for the perfect credit card, visit the credit cards section at Bankrate.com.
Interest rates on variable-rate credit cards rose this week.
Can a zero percent balance transfer credit card help cut high-interest debt?
The new year started out with credit card rates inching higher.
The average rate for variable-rate credit cards fell 1 basis point.
Add money to your pocket for routine expenses from credit card reward payouts.
Can a couple find common ground when it comes to debt?
Follow this 6-month homeowner countdown so you are ready come closing day.
Pay attention to fees on prepaid cards because in most cases you can avoid them.
Sleep better at night knowing you have extra money tucked away for unplanned expenses.
Do you want your kids to be smart about money? Follow these tips to get them started.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused. We do not permit the inclusion of hyperlinks in comments and may remove any comment that includes a hyperlink.
A little research could save you BIG on interest.
The news that an auto finance company distorted consumer credit records for years is a good reminder to check your credit report regularly.
... Read more