Unit 3 Vocabulary

Reinvesting earned interest back into the principal to allow money to grow exponentially over time

• Credit Card

• Direct Deposit

• Compound Interest

• Savings Account

A loan banks offer to their customers when they try to withdraw more funds than they have in their account, usually for a fee and with interest 

• Overdraft Protection

• Bank Statement

• Collateral

• Maintenance Fee

A term used to describe someone with little to no credit history

• Credit History

• Credit Limit

• Soft Inquiry

• Thin File

A card that allows the holder to make purchases without cash by borrowing money

• Credit Card

• Debit Card

• Certificate of Deposit (CD)

• Check

A certain amount of money that must be kept in an account as required by that particular financial institution

• Minimum Payment

• Minimum Balance

• Credit Bureau

• Money Market Account

An account that usually yields slightly higher interest and is designed to provide a place to save money

• Annual Fee

• Collateral

• Savings Account

• Debit Card

A card that is directly connected to your checking account; it enables you to conduct ATM transactions and to make purchases instead of using cash or writing a check

• Credit Card

• Debit Card

• Checking Account

• Savings Account

A monthly document prepared by your financial institution which shows all of the transactions related to your account

• Credit History

• Soft Inquiry

• Credit Score

• Bank Statement

A three-digit number (ranging from 300-850) based on an individual's credit history detailed in a credit report

• Credit Limit

• Credit Score

• Credit Bureau

• Credit History

An automatic electronic deposit of net pay to an employee's designated bank account

• Annual Fee

• APR

• Maintenance Fee

• Direct Deposit