Bank account Basics
This is the act of placing money into a financial institution for safekeeping or future use.
What is a deposit?
This is a card that lets you borrow money to make purchases.
What is a credit card?
This is money you borrow and must pay back with interest.
What is a loan ?
This is a licensed financial institution that accepts deposits and provides loans to individuals and businesses.
What is a depository bank?
This is the criminal act of obtaining and using someone’s personal financial information without permission.
What is identity theft?
This type of account is mainly used for everyday spending and bills.
What is a checking account?
This number shows how reliable you are at paying back borrowed money.
What is a credit score?
This is the cost charged by a lender for the use of borrowed money, usually expressed as a percentage.
What is an interest charge?
This is a member-owned financial cooperative that returns profits to its members rather than outside shareholders.
What is a credit union ?
This is a federal law that requires credit reporting agencies to provide consumers access to their credit information annually at no cost.
What is the Fair Credit Reporting Act (FCRA)?
This account usually earns more interest but limits how often you can withdraw money.
What is a savings account?
This is the maximum amount you are allowed to borrow on a credit card.
What is a credit limit?
This is a method of calculating interest where earnings are added to the principal, causing future interest to increase over time.
What is compound interest?
This is a fee charged when withdrawing money from an ATM outside of your bank’s network.
What is an out-of-network ATM surcharge?
This is the process of replacing an existing loan with a new one that has different terms, often to reduce interest costs.
What is loan refinancing?
This is a written record of all deposits, withdrawals, and charges in your account.
What is a bank statement?
This is the percentage of your available credit that you are currently using.
What is credit utilization?
This is a loan backed by collateral that the lender can claim if the borrower fails to repay.
What is a collateralized (secured) loan?
This is the federal insurance agency that protects customer deposits in member banks up to $250,000 per depositor.
What is the Federal Deposit Insurance Corporation (FDIC)?
This is a legal process in which individuals declare inability to repay debts and seek court protection or restructuring.
What is personal bankruptcy?
This is the fee charged when you take out more money than you have in your account.
What is an overdraft fee ?
This is a report that shows your borrowing and repayment history over time.
What is a credit report?
This is the standardized annual rate that represents the total cost of borrowing, including fees and interest.
What is the Annual Percentage Rate (APR)?
This is a penalty fee applied when a borrower fails to make a required payment by the due date.
What is a delinquency penalty fee?
This is a bankruptcy option that typically allows liquidation of assets to repay creditors while discharging most unsecured debts.
What is Chapter 7 liquidation bankruptcy?