Financial Literacy Review

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What is a debit card?

Back

A debit card is a payment card that deducts money directly from a consumer's checking account to pay for a purchase. It is like a check but comes out of your account automatically, is more convenient than a check, and requires a PIN number for transactions.

Tags

CCSS.RI.5.3

CCSS.RI.5.5

CCSS.RI.6.3

CCSS.RI.6.5

CCSS.RI.7.5

Front

What is a credit card?

Back

A credit card is a payment card that allows the cardholder to borrow funds from a pre-approved limit to pay for goods and services. The cardholder must repay the borrowed amount, usually with interest, at a later date.

Front

What is a credit score?

Back

A credit score is a number assigned to a person that indicates to lenders their capacity to repay a loan. It is based on credit history and other financial behaviors.

Front

What is the difference between credit and debit?

Back

Credit allows you to borrow money up to a certain limit to make purchases, while debit uses your own money directly from your bank account.

Front

What is a credit report?

Back

A credit report is a detailed report of an individual's credit history, including information about credit accounts, payment history, and outstanding debts.

Front

What is a credit history?

Back

Credit history is a record of a borrower's responsible repayment of debts. It includes information about credit accounts, payment history, and any bankruptcies.

Front

What is a credit bureau?

Back

A credit bureau is an organization that collects and maintains individual credit information and provides it to lenders to help them assess creditworthiness.

Front

What does it mean to avoid carrying cash?

Back

Avoiding carrying cash means using alternative payment methods, such as debit or credit cards, to make purchases without needing physical money.

Tags

CCSS.RI.5.5

CCSS.RI.6.3

CCSS.RI.6.5

CCSS.RI.7.3

CCSS.RI.7.5

Front

What happens when you use a debit card?

Back

When you use a debit card, the amount of the purchase is deducted directly from your checking account, reducing your available balance.

Front

What happens when you use a credit card?

Back

When you use a credit card, you are borrowing money from the credit card issuer to make a purchase, which you will need to repay later.