Do you ever find yourself confused by all the different words and phrases banks and credit unions use? No need to worry, we’ve all been there! Here are a few definitions of terms to help clear the air.Credit Union – As a credit union ourselves, SunWest would like everyone to know what we’re about. Wikipedia defines a credit union as “a member-owned financial cooperative, controlled by its members and operated on the principle of people helping people, providing its members credit at competitive rates as well as other financial services”, but what does that mean for you? Well, CUs like SunWest are owned by members – people who have an account with us. We want to help them and our society through great financial services as well as involvement in local communities.
APR – This stands for Annual Percentage Rate. It’s the cost of credit for an entire year, told as a percentage – so if you get a loan with 2.50% APR, you have to pay that percentage of the loan for the credit.
Credit Score – This number will generally be between 300 and 800. Most likely you’ve seen yours as a FICO score. It measures your credit worthiness, which basically translates to what sort of credit card, loan, or other financial service you may qualify for. The higher the number, the more likely you are to get better rates. This number comes from a math formula that calculates what the different pieces of information in your credit report add up to. To get a better score, you can do things like pay your bills/credit cards/loans on time, or get a credit builder loan.These are only a few of dozens, maybe hundreds, of unclear banking terms. What words would you like to know more about? Ask us in the comments here or on our Facebook, Twitter, or Instagram, and we’ll continue to explain everything we can! You can also ask any of our knowledgeable branch team members – we always want to do our best to make things clearer for you. We know the world of finance can sometimes be a little (or a lot) difficult to understand, so we want you to be comfortable coming to us for help in making things simpler.