In what scenario might you face higher interest rates on your credit card?

Facing higher interest rates on your credit card can occur in scenarios where your payment behavior signals to lenders that you present a higher risk. Occasional late payments directly impact how credit card issuers view your creditworthiness. When you miss payments, even infrequently, it can lead to penalties and increased interest rates as lenders may perceive you as less reliable in meeting your financial obligations.

In contrast, a long credit history generally works in your favor, showcasing your ability to manage credit over time. Regular on-time payments consistently demonstrate reliability, which can help maintain or reduce interest rates. Similarly, maintaining a high credit score indicates solid financial management, which usually leads to lower interest rates. Therefore, the presence of late payments in your pattern of credit usage is a significant factor that can trigger higher interest rates on your account.