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What Is a Loan? A loan is money that one person or organization—usually a bank, credit union, or other lender—provides to a borrower with the expectation that it will be repaid, usually with interest, over an agreed period of time. In simple terms: You get money today. You promise to pay back more money later. That “more money” is generally the interest you pay the lender for allowing you to use their money. For example, suppose you borrow $20,000 to purchase a vehicle...

What Is a Debit Card? A debit card is a payment card connected directly to your checking account. When you use the card to make a purchase, the money generally comes out of your bank account rather than being borrowed from a lender. Think of it as an electronic version of writing a check—only much faster. If you have $2,000 in your checking account and use your debit card to buy $100 worth of groceries, your available balance will eventually fall to about $1,900.