The charge for a late payment and the effect on APR can vary depending on the terms of the loan or credit agreement. Some lenders may charge a late fee, which can be a flat fee or a percentage of the payment amount. Late fees are designed to penalize borrowers who miss payments and incentivize them to make payments on time.
Late payments can also affect the APR (Annual Percentage Rate) of a loan or credit account. APR is the annual rate that is charged for borrowing, including the interest rate and any fees. When a payment is missed, the interest on the balance may continue to accrue, increasing the overall cost of the loan or credit. Additionally, a late payment may cause the lender to increase the APR on the account, making future payments more expensive.
It's important to check the specific terms of your loan or credit agreement to understand the consequences of a late payment and how it may affect your APR. If you're having trouble making a payment, it's a good idea to contact your lender and discuss options for resolving the situation.