Credit Check
This three-digit number helps lenders judge how responsibly someone uses credit.
What is a credit score?
This is a place where people deposit money and open checking or savings accounts.
What is a commercial bank?
The cost of money
What is interest?
This famous green piece of paper features George Washington.
What is the one dollar bill?
If your credit card limit is $1,000 and you owe $900, your credit utilization is this percentage.
What is 90%?
This type of bank account is commonly used to pay bills and make everyday purchases.
What is a checking account?
This is the original amount of money borrowed before interest and fees.
What is the principal?
Also a term used in chemistry, these are financial instruments that governments and companies issue to borrow money from investors.
What are bonds?
This type of credit lets you borrow money repeatedly up to a limit, such as with a credit card.
What is revolving credit?
Banks use deposits and other funding to do this for customers who need money.
What is making loans?
If you borrow $1,000 at 10% simple annual interest for one year, ignoring fees, this is the interest you owe.
What is $100?
This happens to the purchasing power of your money when prices rise over time.
What is inflation?
This is the most important habit for maintaining a good credit score.
What is paying bills on time?
Banks may reject a loan application when a customer has too much of this compared with their income.
What is debt?
This is the risk a bank faces when a borrower fails to repay a loan.
what is credit risk?
This type of retirement account lets you contribute money you've already paid taxes on, and qualified withdrawals in retirement are tax-free.
What is a Roth IRA
This is why maxing out your credit cards can hurt your credit score.
Why is it because it shows you're using a high percentage of your available credit?
Banks earn money from lending by charging borrowers this, often at a higher rate than they pay on savings deposits.
What is interest?
This is an asset, such as a car or house, that a borrower pledges to a lender as security for a loan.
What is collateral
This U.S. government agency generally insures eligible deposits at participating banks.
What is the FDIC