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1.
It is possible for a credit card to use several annual percentage rates.
True. A credit card can have a separate rate for purchases and a separate rate for balance transfers, for example.
2.
The term "revolving credit" refers to _______.
The fact that you can borrow from the credit limit over and over, within limit. As long as you stay within your limit, your credit use can "revolve."
3.
When a credit card company calculates interest charges on the current balance by factoring in the average daily balance from the previous billing cycle, thats called ________.
Double-cycle billing. Double-cycle billing is no longer allowed.
4.
When you are reporting a lost credit card, the bank or other issuer must be notified in writing.
True. The law now provides specific guidelines for providing written notice. Failure to adhere to these requirements will result in increased liability for any unauthorized use of your lost or stolen card.
5.
A credit card that requires you to deposit money as collateral is called _______.
A secured card. The money you deposit acts as its security in the event that you default on it.
6.
A credit card issuer is allowed to increase the APR on a new card within the first year _______.
Only in certain circumstances. Certain circumstances, such as if the card agreement discloses up front that it is going to, are allowed.
7.
Credit cards may charge fees for which of the following?
All of the above. These are just some of the many fees that credit cards can charge you for various uses.