Banking & Strategy
Balance & Transaction
Balance - the amount of money in an account
Transaction - an exchange of money
A payment card linked to a checking account that deducts money directly from the account when used.
Credit
Money borrowed to buy something now with the understanding that the money will be paid back in the future.
How much money you owe to that card.
Credit Score
A 3-digit number rating/grade of creditworthiness. Answers vary.
Summary of account activity with a beginning and ending date (usually a month).
Statement
What is a checking account?
Account that allows you to deposit and withdraw money as needed. Used for every day transactions.
Credit Limit
The highest amount of money a company lets you borrow and that can be charged to a credit card account.
A good credit score can help you buy/get...
Home/property
Cell phone plan
Car
Lower interest rate on cards, loans, etc.
and more...
Credit Report
A record of your credit accounts that shows the relationship you have with each credit company and describes how you earned the credit score you have.
Financial information compiled into a report that describes your credit history and financial responsibility.
Account & Routing #
Account # - A unique number that is used to identify a bank account (every account has its own number).
Routing # - A unique number that is used to identify a bank (every bank has its own number).
Account that allows you to deposit and save money. Used for long-term purposes.
Having good credit means you are a _____.
Low-risk borrower.
Annual Percentage Rate
The annual interest rate you will be charged if you carry a balance on your credit card.
True or false.
Once your credit score is calculated, there is nothing you can do to change it.
Age to open an bank account independently in NY and NJ.
18.
Bonus (50 pts) - How can you open an account before you turn 18?
Adding and taking money out of an account.
Deposit & Withdrawal
List 3 advantages of using a credit card.
Answers vary.
True or False
Creating many new credit accounts will improve your credit score.
3 credit agencies.
Experian, transunion, equifax.
HUNT - What each letter stands for.
H- Highlight action/direction word
U- Underline key words
N- Note number of steps in the directions
T- Take another look to make sure you've completed all steps
Marking a check with ___ means it can’t be used to make a payment from your checking account.
Void
List three disadvantages of using a credit card.
Answers vary.
Explain two ways you can protect yourself from credit fraud.
Answers vary.
Payment history, length of credit, total amount you owe/total balance, list of all credit cards/loans, personal information, income, etc.