Yes, and the timing of your late payment matters. According to rules which took effect in February 2010, if you are late up to 60 days past the due date, the interest rate can be raised to a penalty APR on future transactions but not on your outstanding balance at that time. If you are late more than 60 days, the credit card issuer can charge a high penalty APR on the outstanding balance as well as future charges as long as adequate notice is provided (e.g., in a conspicuous location on your billing statement). If you make at least minimum required payments on time for six consecutive months, the APR interest charge must return to the rate prior to the penalty.
Penalty annual percentage rates (APRs) are high interest rates that can be triggered by the slightest infraction such as one payment that is received a day late. Often these APRs range from 20 to 35%. Lenders increase borrowers' interest rate significantly and profit from their customers' mistakes.
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