easy · Asset-Backed Securities asset-nuances

What defines 'Charge-off Rate' in a credit card trust analysis?

  1. The interest rate reset that occurs on a variable-rate credit card once the introductory teaser period ends.
  2. The annualized percentage of the receivables balance that is written off as uncollectible during the period.
  3. The interchange fee charged to merchants for processing each credit card transaction through the network.
  4. The percentage of cardholders who pay off their full statement balance every month to avoid interest charges.

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