Dictionary Of Banking Terminology
This dictionary of banking terminology is designed to help the beginning investor navigate the basics of banking.
Bank
A lending institution that extends credit for interest and fees.
Cashier’s Check
This is a check issued by the bank that works just like cash, but requires your signature and identification for redemption.
Checking Account
A bank account where you can store money, accessed by writing “checks”—notes that represent the amount of money you wish to withdraw from the bank from a remote location and use to pay for a debt or service.
Credit
Credit is a resource loaned to you under assumption that you will repay the debt owed at a specified time. Most of our financial exchanges are done using one form or credit or another. Some of the obvious forms of credit are loans, credit cards and lines of credit, but even our use of water, electricity and gas depends on credit – we pay at the end of the month, after using the services provided.
Credit Bureau
There are three agencies regarded as the primary collectors of credit histories. There are also several specialty reporting agencies which handle more unique credit history information.
Credit History
Your credit history is the record of how well you have paid off borrowed money, whether lent to you in the form of services under contract, loans, credit cards or lines of credit. Your credit history takes into account not only if you repay the debts you incur, but also how quickly you repay those debts.
Credit Report
Your credit report is the official record of your credit history. This report, which is assembled by a credit bureau, consists of information reported by lenders, credit card companies and public records. It lists such items as your name, residential addresses, employment history and Social Security number. It also tracks collection history from collection agencies, plus information about your credit accounts, such as your credit limits and amount of credit capacity used. This report also tracks how many inquiries have been made regarding your credit history, and may contain a 100-word statement if you have chosen to file one with the bureau.
Banking Articles, Videos & HowTos
When you're choosing a bank, location and service should be your first considerations and minimizing fees should be a priority. By knowing what to look for, you'll discover that there's a real difference between banks and learn how to choose a bank that's best for you.
While you might think you have a free checking account, odds are you do not. You might be required to maintain a certain balance or pay a fee for writing more than your monthly quota of checks, meaning that your account is likely not free.
Swiss bank accounts might seem like a shady place to hide money, but they actually have several advantages if you want to protect your privacy.
How do you choose the best banks for your needs when the financial world is on a roller coaster ride? If you’re entering the financial world right now, you’ll want to do some research before you choose a bank.
If you use a commercial bank, you may wonder what advantages there are compared to banking with other kinds of banks. As you’ll see, not all banks provide the same services, especially if you are a business owner.
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