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Comprehensive Overview of Bank Services and Credit Fundamentals

Banks offer a multitude of services, including checking and savings accounts, loans (like mortgages, auto, and business loans), credit and debit cards, and money transfers. Understanding these services helps consumers manage personal finances effectively. Additionally, establishing credit involves knowing key concepts such as credit history, capacity, collateral, capital, and character—often referred to as the 5 C’s of creditworthiness. This guide delves into bank services, lending principles, and what lenders evaluate when determining loan eligibility.

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Comprehensive Overview of Bank Services and Credit Fundamentals

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  1. Personal Finance

  2. What are some services that banks provide? • Checking accounts • Savings accounts • CDs • Credit cards • Debit cards • Insurance • Currency exchange • Money transfers • Safety Deposit Boxes • Traveler’s Checks • Mortgages • Home equity loans • Refinancing • Investments • Mutual funds • Auto loans • Business loans • Cash advances • Free Pens • Lollipops 

  3. Checking accounts • Savings accounts • CDs • Credit cards • Debit cards • Insurance • Currency exchange • Money transfers Which ones involve lending money? • Mortgages • Home equity loans • Refinancing • Investments • Mutual funds • Auto loans • Business loans • Cash advances

  4. Consumer List reasons why you would need or use bank services Lender List reasons for why you would loan money Consumers vs. Lenders

  5. Establishing Credit What is the root of the word “credit”? What is the definition of the word “interest”

  6. 5 C’s of Good Credit What do lenders look at when determining your ability to repay a debt?

  7. Credit History • Paying your bills on time. • How long have you been in business? • What kind of reputation do you have in the community?

  8. Capacity • Do you have the ability to repay the debt? • What resources do you have, both in your business and your personal life, that will be used to repay the debt?

  9. Collateral • What do you have to offer the lender in case you can’t pay back the debt?

  10. Capital (cash & assets) • What cash and other assets do you have access to? • How is your business using these?

  11. Character What kind of person are you? Honest? Dependable? Trustworthy?

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