Loans, Credit Scores, And Consumer Credit Practice Test

Which fee is charged when you do not pay the minimum due by the due date?

Annual fee Interest charge Late fee Grace period

Correct Answer:

Late fee

Explanation:

Missing the minimum due by the due date triggers a late fee. This is a penalty charged specifically for paying late, separate from any interest you may owe on balances. The grace period is the window to pay without interest, but it applies only if you’ve paid in full previously; a late payment can also lead to higher interest later, and the other options aren’t fees tied to not paying on time. Annual fees are flat charges regardless of timing. So, the late fee is the correct concept here.

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