credit cards

What is a punitive rate?


What is a punitive rate?

The financial term of the day is: "punitive rate."

Credit cards have rules, and when you break them, you pay more. Cards slap you with a punitive rate -- a punishingly high interest rate -- if you violate your card agreement by being late with your payment or making purchases beyond your credit limit.

Run afoul with your credit card and you'll regret it. You'll be socked with a higher punitive rate.

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Editorial Disclaimer: The editorial content is not provided or commissioned by the credit card issuers. Opinions expressed here are author’s alone, not those of the credit card issuers, and have not been reviewed, approved or otherwise endorsed by the credit card issuers.

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Product Rate Change Last week
Balance Transfer Cards 16.34% --0.00 16.34%
Cash Back Cards 16.59%  0.06 16.65%
Low Interest Cards 11.61%  0.05 11.56%
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