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1.
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."
2.
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.
3.
For credit card users who report their card lost or stolen within 30 days of when they discover the loss or theft, what is their liability for any unauthorized charges likely to be?
Not responsible for any charges over $50 after notifying the bank. The key here is notifying the card issuer within a reasonable time of discovering the loss or theft, usually 30 days.
4.
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.
5.
Interest on credit card balances is calculated by a variety of methods. With which method does a credit card add up each days balance in the billing cycle and average all of them?
Average daily balance. This method averages each days balance.
6.
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.
7.
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.