A Jersey knit is just that, a knit, while terrycloth is a woven material. If the fiber used in the knit is the proper fiber such as a Pima cotton or a natural or man made microfiber then you'll have no problem. Knits, however, or notorious for not being very durable and they sometimes shed (lint) a lot. It's also tough to find a true all cotton knit towel, they usually come from places where they don't care what they put on the label.