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In a FRM, the interest rate, and hence monthly payment, remains fixed for the life (or term) of the loan. This is done to card credit secured give the lender a reasonable guarantee that the borrower can and will repay the loan. The only downside to card credit secured consumers is that the period of low interest credit cards is limited to a fixed term, usually between 6 and 12 months. Most such services charge a monthly or annual fee. These customers are known in the industry as "transactors" or "convenience users".
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