Financial Terminology Library
Understanding common financial vocabulary can help you make informed decisions.
Financial jargon made simple
When it comes to buying a car or house, planning for retirement or preparing for another major financial event, understanding complex terminology can be overwhelming. Dominion Energy Credit Union is here to help you make sense of common financial terms so the next time you need to make a major financial decision, you have the vocabulary to set you up for success.
Regular interest earns on your principal balance. Compound interest earns on both the principal and interest you’ve already accumulated, which means your money can grow faster over time.
A Credit Card allows you to buy goods immediately and pay for them later. If you don’t pay the total amount in full by the due date you will be charged interest on the outstanding balance.
The maximum cap of money a lender allows you to charge on a credit line.
A credit score is a number assigned to a person that indicates to lenders their capacity to repay a loan. Tap into our free, ongoing credit score report and monitoring program to stay on top of your credit.
This is a plastic card that allows you to perform POS or ATM transactions on your account, authorized with your PIN or signature. See what benefits our Visa® debit cards offer.
A personal finance metric that compares your total monthly debt payments to your gross monthly income, often used by lenders to approve loans. You can find out your DTI Ratio by using our free credit score program in Digital Banking.
A deposit account is a checking, savings, or any other type of account that allows money to be deposited or withdrawn by the account holder.
A service commonly used by employers to deposit regular monthly payments directly into your chosen account, rather than receiving a check. Most often, direct deposit is processed via ACH, and it is the safest and quickest way to get paid.
Dividends are a share of profits distributed to members or shareholders of a financial organization. In the context of credit unions, dividends are typically paid out to members as a reward for their deposits and participation in the organization, much like traditional banks pay interest.