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A type of bank account in which you deposit money with the intent of leaving it there for an extended period of time and earns interest.
Savings Account
What is the statement called that the bank mails or sends electronically every month to show transactions in your bank account?
Bank Statement
FDIC insurance protects a bank customer's bank account up to how much?
$ 250,000
National Credit Union Association for Credit UnionsHow can you avoid interest being charged on a credit card?
Pay the full amount each month
What is the minimum age to apply for a credit card?
18
What are 3 ways you can access money from your checking account?
ATM Card
Check
Debit Card
What are some things you can do with online banking?
Check account balance
Pay bills
View Transactions
View Check Images
An app that is linked to your bank account that allows individuals to complete transactions with one another.
Peer-to-Peer banking
What is the original loan amount borrowed by a borrower? This plus interest makes up your payment.
Principal
Schumer Box
What are at least two services that banks offer?
Checking Accounts
Savings Accounts
Loans
Cash / Deposits Checks
Credit/Debit Cards
What is a check or deposit called that has been written or made that the bank has not cleared yet?
Outstanding Check
Outstanding Deposit
How many digits is the FICO score?
and
The FICO score ranges from what to what?
3 digits
300-850
Who should you contact if you find an error on your credit report?
Credit Reporting Agency (Credit Bureau)
Where do banks get the money they loan to customers?
From their customers bank accounts
What are the different types of bankruptcy?
Chapter 7 - liquidation of debt
Chapter 13 - reorganization of debt for individuals
Chapter 11 - reorganization of debt for businesses
Chapter 12 - reorganization of debt for family farms and family fisherman
What are some things you need to have/do to open a bank account?
Need Social Security Number
Valid form of ID (government issued)
Parent/Guardian if you are under 18
What is the difference between an installment loan and a revolving loan?
Installment Loan - borrowers borrow a specific amount of money, normally a secured fixed loan, and payment is based on principal, interest, term
Revolving Loan - borrowers are given a credit limit, normally an unsecured variable loan, usually only requires a minimum payment
The credit rating is based on five things.
What are they?
Payment History - 35%
Credit Utilization - 30%
Length of Credit History - 15%
Types of Credit - 10%
New Credit Inquiries - 10%
What are at least two things that are reported on your credit report?
Personal Information, Credit Accounts, Inquiries
Public Records, Payment History
Account Balances and Credit Limits
What are some differences between banks and credit unions?
Banks - for profit, customers, more locations, owned by shareholders, anyone from the public can open an account
Credit Unions - not for profit, members, fewer locations, owned by members, restricted to who can open an account
What are the three types of check endorsements and what is on the back of the check?
Blank endorsement - only put your signature on the back
Restrictive endorsement - restricts what you can do with check by putting "For deposit only" on the check along with your account number and signature
Special endorsement - endorses the check over to someone else using the phrase "Pay to the order of"
What are some advantages of using a credit card?
Convenience
Rewards
Builds Credit History
Use it if you don't have the cash
Fraud Protection
What are 3 differences between credit cards and debit cards?
Credit Card - Borrowed Money, Builds Credit History, Interest Charged on Balances, Given a credit limit, Rewards
Debit Card - Use your own money, Does not build Credit History, No Interest, Uses your bank account, Limited Rewards (if any)
What are 5 differences between Secured Loan and an Unsecured Loan?
Secured - Used collateral, Low interest rates, Large Loan Amounts, Bank can repo your collateral, Auto or House Loan
Unsecured - No collateral, High interest rates, Smaller Loan Amounts, Creditor sends to colllections via legal process, Credit Card or Student Loan