How to Credit Card Annual Percentage Rate (APR) Could Double?

Credit Card APRs are ridiculously high, averaging 16.75 percent, according to the latest data from Credit Cards (That’s a record high, by the way.) But make a payment misstep, and you could face almost double that astronomical rate for months afterward.

If you’re more than 60 days late on your minimum credit card payment, your issuer may apply a “penalty APR,” which can reach as high as 29.99 percent, according to Credit Karma. This higher rate can be applied to your current and future balances for six months.

When six months have passed, your creditor is required to reevaluate your rates, per Credit. If you’ve made all your payments on-time during those months, you should hopefully have your rate returned to normal.

To find out what your issuer charges, read through your card’s terms and conditions. Not every card applies the penalty—Chase, Citi and Discover offer cards with no penalty APR, according to LendEu—though many do, and those without penalties will likely have stricter requirements. Make sure your payments are on time (or early) by either automating them or setting a calendar reminder when your bill is due.

You need to make at least the minimum payment in order to keep your baseline APR, though you should aim to pay off your entire bill each month so you don’t fall into debt. For help on that, check out some of our debt resources.