Credit And Non-cash Alternatives

An introductory rate is a type of promotional rate that is designed to attract new clients by offering them benefits such as low initial rates and 0% rate on balance transfers. This rate is required to last at least six months, giving the new clients a temporary advantage and incentive to join.

The Credit Card Accountability Responsibility and Disclosure Act requires credit card companies to give their cardholders at least 45 days notice of interest rate, fee and finance charge increases. This act was implemented to promote transparency and protect consumers from sudden changes in credit card terms and conditions. It ensures that cardholders have sufficient time to understand and evaluate these changes before they take effect.

APR stands for Annual Percentage Rate. It is quoted annually but applied monthly to outstanding balances on a credit card. This means that the interest rate, fees, and other costs associated with the credit card are expressed as an annual rate. However, these costs are actually calculated and applied on a monthly basis to the remaining balance on the card. APR is an important factor to consider when comparing credit cards as it gives a standardized way to compare the costs of borrowing across different cards.

The correct answer is "Annual". An annual fee is charged to a credit card holder yearly for the privilege of "holding" the card. This fee is separate from any interest charges or other fees associated with the use of the card.

Credit card holders are known as convenience users when they pay off their balances each month. This means that they do not carry any outstanding balance beyond the grace period and do not incur any finance charges. These users utilize their credit cards for the convenience and benefits they offer, such as rewards or cashback, but they are responsible and diligent in paying off their full balance before the due date.

An open-end credit refers to a type of credit that allows the borrower to continuously borrow up to a certain limit and make payments based on the outstanding balance. A credit card charge fits this description as it allows the cardholder to make purchases up to their credit limit and pay off the balance over time. Unlike a mortgage, automobile loan, or installment loan, which have fixed terms and require regular payments until the loan is fully repaid, a credit card charge offers more flexibility in terms of borrowing and repayment.

A finance charge refers to the total cost of borrowing, which includes both the interest and fees associated with a loan or credit. It is expressed as a dollar amount and represents the additional cost that borrowers have to pay on top of the principal amount borrowed. The finance charge is an important factor to consider when comparing different loan options, as it directly impacts the overall cost of borrowing and the affordability of the loan.

Capital refers to a person's financial resources and assets. It is the amount of money or assets that a person has which can be used to repay their debts or fulfill their financial obligations. In this context, having capital means that a person's assets exceed their liabilities, indicating a strong financial position and ability to repay debts. Therefore, capital is the "C" of credit that requires a person's assets to exceed their liabilities.