Understanding Credit and Debit Cards

Front

What is a credit score?

Back

A three-digit numerical rating that reflects how likely you are to repay your debt.

Front

What is a common feature of student loans?

Back

They often have lower interest rates than other loans.

Front

Which of the following is a feature commonly associated with a checking account?

Back

Writing checks.

Front

How can a credit report affect a borrower's ability to get a loan?

Back

A good credit report can lead to better loan terms.

Front

What is a work-study program?

Back

A part-time job provided by the college to help pay for education expenses.

Front

What is a debit card?

Back

A card that allows you to access funds directly from your bank account.

Front

What is the difference between a credit card and a debit card?

Back

A credit card allows you to borrow money up to a limit, while a debit card uses your own money from your bank account.

Front

What does it mean to have a good credit history?

Back

It means you have consistently paid your bills on time and managed your debts responsibly.

Front

What is interest?

Back

The cost of borrowing money, usually expressed as a percentage of the amount borrowed.

Front

What is a loan?

Back

A sum of money that is borrowed and is expected to be paid back with interest.