DEBIT CREDIT VOCABULARY

Bank

A for profit institution that offers personal loans, mortgages, and other services

Credit union

A not profit cooperative that offers bank services and is owned by its members

Interest

A fee received or paid for the use of money

Bankruptcy

A legal process the gives a debtor protection form creditors

Cash

Money in the form of bills or coins

Check

A written order for a bank to pay money

Credit

The amount of financial trust extended to a person or a business leader; a loan

Credit card

A card authorizing the holder to buy goods and services that can be paid later

Debit

An amount deducted from a bank account

Debit card

A card that looks like a credit card but operates like cash; money is immediately subtracted from the card holders bank account when a purchase is made

Debt

Money owed

Foreclosure

A legal process in which a leader takes possession of a house/land when loan payments are not made. Usually of 6 months to a year.

PayPal/venmo

An online payment service that allows consumers to transfer money electronically

Credit report

A record of a persons financial information including previous addresses, social security number, current and previous employers estimated income, credit card accounts with amount owed and payment history and loan information.

Credit score

A measure of an individual’s credit risk; calculated from a credit report using a standardized formula

Impulse spending

Purchasing items on the spur of the moment, buying items without prior planning

Grace period

A time period during which no finance charges will be added to your credit card account

Minimum payment

The smallest required payment that a credit card holder can pay on a monthly bill and still remain in good standing with the lender.