Costs of using a credit card include the interest rate charged on balances as well as fees, such as the annual fee, late payment fee, and the fee charged when cardholdersgoover their stated limit.
Prior to the CARD Act When a cardholder bounced a monthly payment check, missed a payment, was late on a payment, or wentover their creditlimit, a higher APR known as a default or penalty rate was assigned to their credit card account.