Question

What is likely to happen if a borrower is late on a payment for a credit card account?

The credit card company requires the entire balance be paid in full immediately.
The credit card company cancels the card after the first tardy payment.
The credit card company doubles the credit limit.
The credit card company applies a penalty rate, increasing the card's interest rate.

Answer 1

That last response applies a penalty rate is the correct answer.

Answer 2

I would say that the last answer is the most likely to occur