YMC Study Guide/Glossary





























Accrued Interest: Interest that has been earned but has not been paid out (disbursed).


Adjustable-Rate Mortgages (ARMS): Variable rate mortgages that adjust during the life of the loan based on keys economic movements. ARMs usually offer a lower initial interest rate than fixed-rate loans. The interest rate is generally lower than an traditional fixed mortgage. As rates increase, monthly payments increase. These are great mortgages when rates are low.


Annual Percentage Rate (APR): The interest rate paid on loans. Higher credit scores will receive lower rates, lower credit scores, higher rates.


Annual Percentage Yield (APY): The interest earned on a deposit (share account)


Automatic Bill Payment: Available in home banking, automatic payments are set to reoccur at a specific time monthly. Many times members will receive a lower rate on their loans if enrolling in automatic payment.


ACH – Automated Clearing House: An electronic deposit or withdrawal from your share accounts such as direct deposit of members’ salaries and government benefit payments (e.g., social security, welfare, and veterans’ entitlements), member-initiated payments, and preauthorized transfers.


ATM – Automated Teller Machine: ATMs! Now, you can wave your phone, insert your chip enables card, or initiate a transaction from your mobile device. Transactions include accepting deposits and loan payments, withdrawals, and transferring funds between accounts.


Available Balance: The balance of an account, less any merchant holds from pending debit card transactions, uncollected funds, or other restrictions against the account.


Available Credit: The amount of purchasing power available on a line of credit or credit card.



Balance Transfer: Moving an outstanding balance from one credit card to another. Usually to obtain a lower fee. Most balance transfers will incur a standard minimum fee or 3 or 5% of the balance to be transferred.



Budget: A budget is a plan on how much to save each week or month to make a purchase or to reach a savings goal.




Charge-Off: The balance on a loan, or negative share draft account, that a financial institution no longer expects to be repaid and writes off as a bad debt.


Charter Number: A unique number assigned to the credit union by NCUA, You can find a specific credit union’s charter number by visiting, https://mapping.ncua.gov/ResearchCreditUnion.aspx


Checking Account (Share Draft Account): Traditionally a place that direct deposit is sent to and bills are paid from. It is a transactional account, although some checking accounts will offer interest tied to a balance or cashback depending on your debit card usage.


Closing Costs: The expenses incurred by sellers and buyers in transferring ownership of real property. The costs of closing may include an origination fee, discount points, attorneys’ fees, loan fees, title search, and insurance, survey charge, recordation fees, and the credit report charge. Credit Unions generally offer lower or reduced closing costs in comparison to banks.


Club Accounts: Holiday, Christmas, or Vacation Club Accounts allow members to save through the year for a specific reason. There is usually some threshold amount that they must deposit before accusing interest. It encourages consistent savings habits with automatic deposits that can be set up with payroll deduction. The balance will then will roll over into the primary share savings or checking account at the end of the cycle.


Collateral: Assets that are offered to secure a loan or other credit. For example, if you obtain a real estate mortgage, the credit union’s collateral is typically your house. Collateral becomes subject to seizure on default.


Collateral Protection Insurance (CPI): A type of property insurance that protects the lender’s interest in the collateral securing a loan. It is not a substitute for comprehensive and collision coverage on a vehicle. If a borrower has a vehicle loan and fails to obtain or maintain the proper insurance coverage required by the loan agreement, the lender can purchase CPI and add the premium for it to the loan balance. In most cases, this action increases the loan payments to cover the cost of the insurance. CPI can also be added to a loan when vehicle insurance changes or lapses, or the vehicle title does not name the lender as a lienholder during the life of the loan.


Consumer Reporting Agency: There are three traditional agencies: Experian, TransUnion, and Equifax. Payment history and other individual credit information are reported here and can affect your credit score. Individuals can pull one free credit report annually at AnnualCreditReport.com.


Conventional Fixed-Rate Mortgage: A fixed-rate mortgage offers you a set interest rate and payments that do not change throughout the life, or “term,” of the loan. A conventional fixed-rate mortgage loan is fully paid off over a fixed number of years—usually 15, 20, or 30. A portion of each monthly payment goes towards paying back the money borrowed, the “principal”; the rest is “interest”. Home insurance, and property taxes (escrow) can be calculated into the monthly payment as well.


Co-Signer: If a member will not qualify for a loan on their own, the credit union can request a co-signer. This person will be responsible for the loan if it is not paid.


Coverdell Education Savings Account: Formerly called education IRA. An education account that accumulates interest tax-free. You can also withdraw money from this account without penalty.


Credit Application: Also known as a loan application, which is given to a potential borrower to provide details about his or her creditworthiness, which includes details about the residence, employment, income, and existing debt. Sometimes, an application fee is charged to cover the cost of loan processing.


Credit Card: We all know this one! A credit card gives members access to purchasing power. Much like a line of credit, interest is incurred on the balance owed. A monthly payment is due. Late fees, over-the-credit-limit fees can be incurred. Secured credit cards are available for members who would like to use savings balances as collateral. This may be helpful for those who want to improve their credit.


Credit History: Found on the credit report this shows borrowing and repaying history. It will list personal or corporate information, including how long your credit lines remained open, history of late and current payments, the original amount and the outstanding balance, monthly payments, charged-off accounts, delinquent accounts, and accounts charged off in bankruptcy.


Credit Limit: The maximum amount of credit that can be charged on a credit card or the maximum amount that can be drawn from a line of credit.


Credit Score: A number, roughly between 300 and 800, that measures an individual’s creditworthiness. The most well-known type of credit score is the FICO® score. The score of 800 is the best rating you can achieve. Credit scores can contribute to credit lending decisions by loan underwriters.


Credit Union: A not-for-profit financial institution owned by its members and represented by a volunteer board of directors who are elected by the membership. Credit Unions are formed by people who join together to form a common bond. To become a member, you must meet the credit union’s field of membership requirements and open a share account.



Cut-Off Time: A time of day established by a financial institution for receipt of deposits and payments. After the cut-off time, deposits or payments are posted to your account on the next banking day.



Debit: Debits are transactions that lower the balance in your share account. They can be initiated with your debit card, ATM card, electronic transaction, wire transfer, written check, etc.


Debit Card: A debit card allows the account owner to access their funds in the checking account electronically. Debit cards may be used to obtain cash from ATMs or used for purchases. Funds are deducted immediately from the checking account.


Debt Collector: An employee of a financial institution who is dedicated to recovering funds lost due to account overdraft or unpaid lending products.


Debt-to-Income Ratio (DTI): The percentage of a member’s monthly gross income that goes toward paying installment debts. Generally, the higher the ratio, the lower is your capacity to repay the loan. The DTI is calculated by dividing total monthly debts by total monthly gross income.


Deferred Payment: A payment postponed until a future date. Interest is usually still accrued.


Delinquency: A debt that was not paid by the loan’s payment date


Direct Deposit: A payment that is electronically deposited into an individual’s account at a depository institution.



Dividends: The money (interest) the credit union pays you for keeping your money in your savings account, also known as a share account.



Escrow: The holding of money or documents by a neutral third party before closing on a property. It can also be funds held in reserve by a financial institution or mortgage company to pay taxes, insurance, and other mortgage-related items when due.



Exchange Rate: The amount a dollar is worth when you exchange it for money from another country. In other words, the price of one country’s currency is expressed in another country’s currency.



Fee: A source of non-interest income. Fees can be charged for various reasons. Late payments, insufficient funds, transactional, service, and more.


First Mortgage: The first mortgage in the first that will be repaid. Second mortgages are generally vacation or rental properties.


Fixed-Rate Loan: Loans that have a fixed rate of interest. Both the interest rate and the monthly payments (for principal and interest) stay the same during the life of the loan.


Foreclosure: The legal process by which a property may be sold and the proceeds of the sale applied to the mortgage debt. A foreclosure occurs when the loan becomes delinquent because payments have not been made or when the homeowner is in default for a reason other than the failure to make timely mortgage payments.



Foreign Transaction Fee: A fee assessed by your financial institution for making a transaction at another financial institution or bank’s ATM.





Guarantor: A party who agrees to be responsible for the payment of another party’s debts should that party default.



Hold: Used to indicate that a certain amount of a member’s balance may not be withdrawn until an item has been collected, or until a specific check or debit is posted.


Home Equity Line of Credit (HELOC): A line of credit secured by the equity in a member’s home. It is typically used for home improvements, debt consolidation, and other major purchases. Interest paid on the loan may be tax-deductible. Interest is only charged on the amount of line used and most often is a variable rate.



Home Equity Loan (HEL): Similar to a HELOC, however the available about of credit is disbursed as a lump sum with a specific monthly repayment schedule. Interest is fixed on these loans and generally refinanced or paid off within 10 years.



Inactive Account: An account that has no activity; neither deposits nor withdrawals posted to the account, for a significant period of time.


Individual Retirement Account (IRA): A retirement savings program for individuals to which yearly tax-deductible contributions, up to a specified limit, can be made. The amount contributed is not taxed until withdrawn. Withdrawal is not permitted without penalty until the individual reaches age 59 1/2.


Insufficient Funds: When a member’s checking or share draft account balance is inadequate to pay a check or ACH presented for payment. This will incur a fee for the member.


Interest: The term interest is used to describe the cost of using money, a right, share, or title in property.


Interest Rate: The rate paid on deposits or accrued on loans. These are generally based on credit score (for loans) and market conditionals (for savings). Many times interest rates on loans can be reduced with automatic payments or other incentives.





Joint Account: An account owned by two or more persons. Either party can conduct transactions separately or together as set forth in the deposit account contract. In addition, some states allow one owner of the account to use the share balance as collateral in case of default.






Lender: An individual, financial institution, or other entity that lends money with the expectation that the money will be returned with interest.


Line of Credit: A pre-approved loan authorization with a specific borrowing limit based on creditworthiness. Like a credit card, a line of credit earns interest on the amount used.



Loan-to-Value Ratio (LTV): The ratio of the loan principal (amount borrowed) to the appraised value (selling price). For example, on a $100,000 home, with a mortgage loan principal of $80,000, the loan-to-value ratio is 80 percent. The LTV will affect the types of programs available to the borrower; generally, the lower the LTV, the more favorable the program terms offered by lenders.



Maturity: The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.


Membership: To have a savings account at a credit union, you must either be a member of an SEG (select employee group), or live, work, study, volunteer, or worship n a specific area. In a Credit Union membership equals ownership.


Minimum Balance: The amount of money required in an account to avoid fees or to keep the account active.


Minimum Payment: The minimum dollar amount that must be paid each month on a loan, line of credit, or other debt.


Money Market Share Account: A savings account that generally offers a higher rate of interest in exchange for larger than normal deposits. Insured by the National Credit Union Share Insurance Fund (NCUSIF), these accounts limit the number of withdrawal transactions to six monthly.  Money Markets are considered low transactional savings account and are regulated to six withdrawals per month.


Mortgage: Your home loan! There are many types of mortgages available. This is generally the largest purchase any individual will make.


Mortgage Loan: A loan made by a financial institution to a borrower for the financing of real estate property.


Mortgagee: The financial institution in a mortgage loan relationship.



Mortgagor: The borrower in a mortgage loan relationship.



National Credit Union Administration (NCUA): The Federal regulatory agency that charters and supervises Federal credit unions. NCUA also administers the National Credit Union Share Insurance Fund, which insures the deposits of federally insured credit unions up to $250,000 (both Federal credit unions and state-chartered credit unions.)



Non-Sufficient Funds (NSF): The status of an account that does not have enough money in it to cover one or more transactions. NSF also describes the fee incurred from a check that cannot be honored or does not clear because of insufficient funds in the checking account. NSF checks are often known as bad checks, bounced checks, or returned checks.



Online Banking: The ability to access your accounts securely online anytime. Check balances, transfer funds, schedule payments. Many platforms now offer financial management tools, credit scores, and loan applications.


Overdraft: When a member spends more than their available balance on a checking account. When this happens, your financial institution maydecline the transaction and charge you a non-sufficient funds (NSF fee). Members must opt-in for the credit union to cover Debit Card and ACH Transactions. A fee will be charged for each overdraft and there may be a limit of the number of times you can use overdraft. Your financial institution may offer additional products to assist when overdrafts occur.








Payday Loans: A small-dollar, short-term loan that a borrower promises to repay out of their next paycheck or deposit of funds. Payday loans generally charge high fees and interest.


Payee: The person or organization to whom a check, draft, or note is made payable.


Payment Due Date: The date on which a loan or installment payment is due. Any payment received after this date is considered late and fees and penalties may be assessed.


Payoff: The complete repayment of a loan, including principal, interest, and any other amounts due. Payoff occurs either over the full term of the loan or through prepayments.


Personal Identification Number (PIN): Generally, a four-character number or word, the PIN is the secret code given to credit or debit cardholders enabling them to access their accounts. 


Private Mortgage Insurance (PMI): Protects the lender against a loss if a borrower defaults on the loan. It is a payment usually required of a borrower for loans in which a down payment is less than 20 percent of the sales price, or in a refinancing, when the amount financed is greater than 80 percent of the appraised value. When you acquire 20 percent equity in your home, PMI is cancelled. Depending on the size of your mortgage and down payment, these premiums can add $100 to $200 per month or more to your payments.





Refinancing: A way of obtaining a better interest rate, lower monthly payments, or borrow cash on the equity in a property that has built up on a loan.


Refund: An amount paid back because of an overpayment or because of the return of an item previously sold.


Renewal: A renewal is the act of restarting a financial product. For instance, renewing a certificate of deposit or loan would include the term being extended to a chosen length of time.


Retirement Accounts: An account that helps you plan for your retirement. It is also the best way to save for tomorrow. Retirement accounts include defined contribution plans (e.g. IRA, 401k, or profit sharing plans) and defined benefit plans (e.g. pension or cash balance plans).


Return Item: Generally a check that has been sent for payment and is returned unpaid. Normally a fee will be incurred for returned items.


Reverse Mortgage: A special home loan product that allows a homeowner aged 62 or older the ability to access the equity that has accumulated in their home. The home itself will be the source of repayment. The loan is underwritten based on the value of the collateral (home) and the life expectancy of the borrower. The loan must be repaid when you die, sell your home, or no longer live there as your principal residence. (Also called home equity conversion mortgages or reverse-annuity mortgages).



Revolving Credit: Another name defining a credit card or line of credit amount. This is also called open-end credit. Members are only charged interest on the amount of credit used.



Share Account: Credit unions call savings accounts share accounts because at a credit union you are a part owner of the credit union. A primary share account must be opened to be a member in a Credit Union and access the available financial products and services.


Share Certificate: Like a CD (certificate of deposit) interest is earned over a set period of time. There is usually a minimum deposit required and early withdrawal may incur fees.


Share Draft Account: Credit unions call checking accounts share draft accounts. Share draft accounts are transaction accounts.


Statement: A summary of all transactions that occurred over the preceding cycle are associated with a deposit account or loan account.



Stop Payment: Stop payments can be placed on share drafts, official checks, and ACH payments. If the transaction is not cleared, the stop payment can be placed. Official checks must be lost, stolen, or damaged in order to stop. Debit card transactions cannot be stopped retroactively.



Terms: The conditions of an agreement between a financial institution and consumer. Membership, deposit, and loan agreements contain terms. When discussing loan terms, it includes the period of time a borrower has to repay a loan, and the interest rate the borrower agrees to pay the lender.



U, V


Variable Rate: Any interest rate or dividend that can change on a periodic basis.





Wire Transfer: An electronic transfer of money from one person to another. A more narrow technical meaning, referring to one certain method of transferring funds, which usually involves an electronic transfer of funds from one credit union account to another.



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X, Y, Z





  • A SEG-based credit union is one that serves numerous smaller employers. SEG stands for Select Employee Groups. Employees of the companies that are affiliated with the credit union are eligible for membership.

  • Community-based credit unions allow people to join who live in a particular geographically defined area such as a certain zip code, town or county.

  • Tip Charter (Trade Industry and Professional (TIP)) allows single sponsor credit union to apply to serve all segments of a particular trade, industry or profession




  • One must be used when advertising real estate-related loan. It signifies that the Credit Union makes such loans without regard to race, color, religion, national origin, sex, handicap, or familial status.

  • Federally chartered Credit Union can you either the EHL or EHO State must use the EHO.



  • Banks participate in consumer lending by making direct loans to their customers. Banks can also establish a relationship with a third party, such as an auto or RV dealer. The first type of activity, direct lending, has traditional credit and consumer risks associated with any consumer loan. The second type of lending, indirect lending, creates the same risks but adds a layer of additional risks. Indirect lending typically takes one of two forms: (1) the dealer may originate loans to consumers, which the bank then purchases or (2) the dealer may forward the loan application to the bank, which then originates the loan. The risks are the same under both scenarios.

  • A direct loan is a loan obtained directly from a financing institution without involving a third party. In many cases, consumers will work with their direct lender to finalize financing before going to the third party. Credit unions are an example of a direct lender.

  • An indirect loan is a loan which is obtained at a third-party location. In most cases, the financing is tied directly to the product and the third party where the product is obtained. Captive lenders such as Mercedes-Benz Financial Services and Volkswagen Credit are examples of indirect lenders.









The Money

Requires more money up front, and each month.

Costs less up front and each month, so you can afford a more expensive car.

The Bills

Can pay off your auto loan, which eliminates a monthly cost.

If you always lease, you’ll make care payments for life.

The Commitment

Have the freedom to sell or trade it in whenever.

A lease contract is difficult and expensive to break

The Dollars & Cents

Usually costs less than leasing overall, over time.

You can get a tax break if you use the car for business purposes.

The Time

It’s yours to sell, total, or drive for 20 years.

Can upgrade to the newest model every couple of years.

And Keep in Mind

The car’s value depreciates as soon as you drive it off the lot.

You’ll owe fees for exceeding annual mileage limits or any damage to the car.







Home Equity Line of Credit (HELOC)

Home Equity Loan (HEL)

How does it work?

Money is borrowed as you need it like a credit card.

Borrow one large amount all at once (one Lump sum)


Interest is generally a lower variable rate.

Fixed interest rates

Monthly Payments

Monthly payment amount is based on the unpaid balance of the last advance and annual percentage rate. Minimum of $100.

Fixed Monthly payments

Most common way to use?

Better when you are not sure how much you will need to borrow for a project or have ongoing expenses.

Better when you have a specific purpose for the loan and a one-time need.








What’s the difference?

Monthly mortgage payments remain the same for the life of the loan – either 15 or 30 years.

Monthly mortgage payments will be the same for a set period of time, and then change annually thereafter.

Interest Rate

Whatever the current market rate is when you apply for the loan.

Initially lower than that of fixed-rate interest.

Interest Rate Change

Never, unless you refinance

In a 5/1 ARM, the rate is fixed for 5 years and then changes once annually.

Some Lenders offer 3/1, 7/1 and 10/1 ARMs, meaning your rate could be fixed for 3,7, or 10 years before adjustments.


Your monthly payments are predetermined making it easy to budget.

Lower initial interest rate will save you money.

If interest rates fall after your initial fixed-rate period, your monthly payments can decrease.


You could have higher monthly payments than an ARM depending on your initial interest rate.

If interest rates rise, your monthly payments will rise.


ARMs have a “cap” that limits how high or low your rate can go over the life of the loan.




  • Lower interest rate and lower payment

    • Refinancing to a lower interest rate will save you money — on your monthly mortgage and interest paid over the life of the loan.

  • Reduce the life of the mortgage (example refi from 30 to 20)

  • Reduce or shorten PMI (personal mortgage insurance)

  • Take cash out for home improvements, college expenses, etc

  • Take cash out to pay off other debts

  • Move from an ARM to a fI ixed-rate mortgage



Amount of Debt: How much do you own and how much of your available credit have you used?

Payment History: Have you paid your past credit accounts on time?

New Credit: How much of your available credit is new?

Credit Mix: What is your mix of credit cards, auto loans, student loans, mortgages, etc,

Length of Credit History: How long have you been using credit?


Credit Score and Meaning pulled from Experian.


Credit Score



800 – 850



740 – 799

Very Good

A – B

670 – 739


B – C

580 – 669


C – D

300 – 579

Very Poor

D – E

Let's Get Started!

Reh Harvey

Vice President of Digital Strategy

Reh Harvey, our Vice President of Digital Strategy, leads with diligence and fervor. Having previously been a member of Team YMC, he is excited to return to such an amazing culture and even more amazing people (his words)! Through his experience in the marketing world, he’s found the key to success is to stay on the cutting edge and to always keep evolving.
Although originally drawn to marketing for its lack of math, Reh now finds himself doing more math than he would’ve bargained for. But his self discipline and positive attitude make it easy for him to laugh and take it in stride. Hoping to one day visit Japan and enjoy some premium Sushi, Reh lives life by his creed: Be a good human. Do good work. And above all, just keep going.

Hailey Madej

Graphic Designer

As YMC’s in-house Graphic Designer, Hailey possesses an eye for detail and a drive to innovate. It’s no surprise though since being creative runs in the family! Inspired from an early age by her mom’s work as a Graphic Designer, Hailey is a seasoned expert whose talents bring vitality and accessibility to every project. As a UX/UI designer, she expertly blends the intuitive and the creative for all to enjoy.
In addition to the occasional freelance project, Hailey also lends her abilities to supporting art initiatives within her community, such as the Belleville Mural Project. Her favorite aspect of joining the YMC team is the friendly, uplifting culture and breadth of design tasks. When it comes to marketing, she believes in pushing boundaries and maybe breaking some rules to capture her audience’s attention. Her advice to those just starting out? “Always seek quality over quantity.”

Dexter Ochoa

Development Assistant

When it comes to blending logical thinking and creative problem solving, Dexter’s abilities are undeniable! Beginning his career as a Web Developer, he’s no stranger to the wide world of Marketing and Advertising. Calling Biñan City in the Philippines home, Dexter has a burning desire to visit the Alpine peaks and valleys of Switzerland. While that journey may be far off, he is still no stranger to international travel. While visiting Japan, he was able to enjoy his favorite delicacy: Sushi and Sashimi. He also learned unexpected facts about Japanese Yen, specifically that it has special markings for the blind to know its value!

Living life by his motto to “Do good even if the world is unfair,” Dexter would also advise his younger self, “It’s hard, but you’re doing good!” Whether he’s enjoying a cup of coffee in the morning or the occasional Pale Pilsen in the evening, Dexter is eager to work with the talented professionals of YMC, and we’re just as eager to add his talent to the team as well! His marketing words of wisdom? “Be creative, and just do what you want!”

Andrew Wyche


Hailing from the NC state capital (that’s Raleigh if you didn’t know), Andrew is YMC’s Copywriter extraordinaire. That’s why he knows that “The verb form of ‘reconnaissance’ is ‘reconnoiter.’ The former is, strictly speaking, a noun.” Seriously, he knows his words and he’ll use those words to get bold and weird (in a good way) with his copy. Fuelled by a love for pasta, shellfish, a good single malt, or a meal consisting of all three, Andrew navigates life with a motto engraved in his heart: “Choose kindness. Always.” It is this guiding principle that has led him to explore the realm of marketing, driven by a desire to connect with people in meaningful ways. As he continues to chase his dreams, one bucket list item stands out above the rest – a pilgrimage to Scotland. With his heart set on adventure and his pen poised for creativity, Andrew’s journey is far from over.

Alex VanHaasteren

Senior Web Developer

Alex is YMC’s Senior Web Developer and, as the title suggests, she is an absolute pro! While she initially started in graphic design – working long and hard to expertly bring concepts to life – she also felt drawn to technology and applying her natural ability to problem solve. Web Development proved the perfect blend of her creative passion and technical savvy.

When Alex is out with friends – including her YMC colleagues – she’s up for Greek cuisine or some good pulled pork BBQ washed down with Diet Coke. Or an Old Fashioned, if the occasion demands. Someday, she hopes to go to Africa on a safari. Hopefully she’ll see a giraffe in the wild, because – as she’s pointed out – its neck is too short to reach the ground!

When she isn’t jamming out to T-Swift, she’s happy to impart some marketing words of wisdom, “Aim to create something unforgettable.” For day-to-day inspiration, she would remind you of two fundamental truths: You decide your happiness, and Ice cream is its own food group—not just a dessert.

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