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So, when they pay that cent for every single $100 out-of loans, they are going to should collect a few cents. . Per harmony try susceptible to a different sort of rate of interest (the brand new pur rates, the money progress rate, an such like.) The fresh Card Work expected credit card issuers to utilize repayments inside the more than minimal . In other words, there is absolutely no risk-depending rates.
Very, if they spend one to penny for each $a hundred off financial obligation, might need to gather a couple cents. . For every single equilibrium are at the mercy of yet another rate of interest (the latest pur rates, the money progress speed, etc.) The brand new Cards Work required creditors to apply payments inside more than minimal . Put differently, there’s absolutely no exposure-mainly based rates.
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