Question

Besides a late fee, what is a major penalty for a late credit card payment?

(1 point)
Responses

The cardholder will lose all of their cash-back rewards.
The cardholder will lose all of their cash-back rewards.

The bank will give an automatic increase to the credit limit.
The bank will give an automatic increase to the credit limit.

The lender may apply a much higher penalty interest rate.
The lender may apply a much higher penalty interest rate.

The account will be changed into a debit card account.
The account will be changed into a debit card account.

Answer 1

The lender may apply a much higher penalty interest rate.