Universal Default

Universal Default

What is Universal Default

Universal default is practice whereby a credit card issuer increases a credit cardholder’s interest rate if the individual is late making a minimum payment on any debt that is reported to the credit bureaus. For example, if Jenny has a Visa card and a Discover card and she misses the payment deadline on her Discover card, her Visa card issuer might increase the interest rate on her Visa card. Her Visa card issuer might even increase her rate if it learns Jenny was late paying her car loan.

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