 TITLE: What Is a Penalty APR? CONTENT: How to Avoid Penalty APR Costs\n------------------------------\nMaking at least your minimum payment on time will help you avoid a penalty APR. It's also how you should be using your credit card anyway, as late payments can lead to fees and lost benefits and hurt your credit even if you don't get hit with a penalty APR.\nAnother option may be to reach out to your credit card company and negotiate a different option before your payment is due. The company may offer you a hardship plan that allows you to temporarily miss payments or make a lower minimum payment without paying any extra fees or penalties.\nBeing mindful of when you use your credit card can also help you avoid a penalty APR in the future. Limiting the purchases you put on the card will lead to a lower balance and a lower minimum payment. END