The reasons one could face a penalty annual percentage rate (APR) include;
- balance transfer
- exceeding credit limit
- late payment
Annual Percentage Rate (APR)
Annual percentage rate (APR) refers to the yearly interest generated by a sum that's charged to borrowers or paid to investors. APR as the name implies is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income earned on an investment.
On this note, it follows that Annual percentage rate can be charged on the occurrence of any of the aforementioned situations.
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