Terms to Know: Credit/Debit

  • Credit Score: ranges from 300 to 850, a higher score is given if you’re more likely to repay your debt based on your past ability to repay; a higher score typically means a lower interest rate

  • Debit Card: immediately withdraws money from your bank account, connected to a checking account

  • Credit Card: any purchases made are gathered on a credit card statement and paid monthly; failure to make the payment in full results in paying interest

  • Cashier’s Check: a check that draws on the funds of the bank (instead of a personal account) but the personal account is used to buy the cashier check originally; primary benefit is the person receiving the check is assured the funds are available


Want to learn more? Here are some helpful Quizlets:


Source credit: TheBalance, KidsAintCheap