Common banking terms in Canada for newcomers

Cash

A common term for money or physical currency or cash

credit card

A payment card that allows you to buy things on credit terms. You can also use a credit card to receive cash. Credit cards have certain limitations.

Credit score

A record that shows your ability to repay your bank debts. Your history shows whether you have made your scheduled payments on time

Credit rating

This score is based on your bank account history and helps financial institutions determine whether they are eligible to lend to you. This credit rating is based on how you have paid back your debts in the past, how much you owe, and how you manage your credit account with restrictions like credit cards.

Credit report

This report is a real document that shows your credit history and credit score. In Canada, this is provided by two agencies , TransUnion and Equifax .

Credit Union

A full-service financial institution that operates on a partnership model and provides services and products like other financial institutions.

Direct deposit

Money transferred electronically directly to your account.

Interstreet

or the percentage interest rate that is used to determine the amount of interest that must be paid. This can mean the interest you have to pay back on the money you borrow, or it can mean the interest you earn on an investment that you have to pay.

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