What is a penalty APR?

A penalty APR is an additional interest rate applied to credit card accounts in certain situations. It is a higher rate than the cardholder’s regular APR, and it is often applied to accounts when a payment is late or when the cardholder has gone over their credit limit. In New York, the rate of a penalty APR must be disclosed in the credit card agreement. It is important to remember that penalty APRs are not applicable to all credit cards, and may not apply to accounts in good standing. It is also important to remember that if you receive a penalty APR, it may only apply to transactions made after the date your penalty APR is applied. Many companies in New York will also provide a grace period before the penalty APR is applied; however, this is determined by the card issuer. To avoid penalty APRs, it is important to make payments on time and keep your credit card balance within your credit limit.

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What is a penalty APR?

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