Types of Bank Accounts
This type of account is used for everyday spending and allows you to write checks or use a debit card.
Checking Account
Borrowing money now and paying it back later with interest describes this concept.
Credit
The process of tracking income and expenses to reach financial goals.
Budgeting
This type of credit requires you to pay a fixed amount every month until it’s paid off.
Installment Credit
This “C” refers to a borrower’s reputation for paying bills on time.
Character
This account earns interest and is better for saving money you don’t plan to spend soon.
Savings Account
This three-digit number shows how likely you are to repay borrowed money.
Credit Score
Writing down or recording every expense is part of this habit.
Tracking your Spending
You use this type of credit when you pay for utilities like water, gas, or electricity after using them.
Service Credit or Open Credit
This “C” measures your ability to repay a loan based on income and expenses.
Capacity
This account is a low-risk investment that locks your money for a set period in exchange for higher interest.
Certificate of Deposit (CD)
The maximum amount a lender will allow you to borrow on a credit card.
Credit Limit
This fee occurs when you spend more than what’s in your checking account.
overdraft fee
This type of credit lets you borrow, repay, and borrow again up to a limit.
Revolving Credit
This “C” refers to something of value a borrower pledges to secure a loan.
Collateral
Money kept in this type of account can be accessed using an ATM card.
Checking or Savings
Paying only this amount each month can lead to high interest charges over time.
Minimum Payment
Using this type of card withdraws money directly from your checking account.
Debit Card
The most common form of revolving credit.
Credit Card
This “C” is the money or assets a borrower invests in a purchase or business.
Capital
These are two key differences between checking and savings accounts.
Frequency of withdrawal and interest rate
Name two main factors that affect your credit score.
Payment History
Keeping at least $500–$1,000 for emergencies is an example of this.
Emergency fund
Using too much of your available revolving credit can hurt this score.
Credit Score
This “C” refers to the overall situation that might affect a borrower’s ability to repay.
Conditions