Universal Default
Universal Default
Definition: When a lender penalizes a borrower with accounts other than the account that is defaulted. For example, credit card 1 was 35 was paid 35 days late. Credit card 2 (from another bank) was informed and raised their customer's rate to the default rate.
Definition: When a lender penalizes a borrower with accounts other than the account that is defaulted. For example, credit card 1 was 35 was paid 35 days late. Credit card 2 (from another bank) was informed and raised their customer's rate to the default rate.