Question

True or False: Credit cards are a closed and secured line of credit. Explain.

Answer 1

False, a secured line of credit is guaranteed by an asset called collateral, such as a home or a car.

An unsecured line of credit is not guaranteed by any asset—for instance, a credit card.

Explanation:

Answer 2

The cost of credit is basically the late fees and transfer fees on your credit card. ... May combine elements of closed and open-end credit. Usually higher interest rates and higher fees.

Explanation: