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Flashcards in Credit Cards & Loans Deck (10):
1

A loan backed up by collateral is known as

Secured Loan

2

The time period between the billing date and the due date on the credit card account

Grace Period

3

Open-ended credit is also known as

Revolving Credit

4

If you pay off a loan early and get charged a fee

Prepayment Penalty

5

Cash advances usually have higher interest rates and interest accrues immediately. True or False

True

6

What kind of interest rate is artificially low and lasts for a limited amount of time?

Teaser Rate

7

What is gap insurance?

Pays off the remainder of the loan if the insurance payment is insufficient to do so.

8

Define cooling-off rule and when it applies?

3 days to cancel a contract of $25 or more after signing it anywhere other than a seller's normal place of business.

9

Do virtually all products sold by merchants have implied warranties?

Yes

10

What are lemon laws?

s tate laws, you can order a dealer to buy back a car sold to you that has been in the shop four or more times to fix the same problem.