The New Year is synonymous with new beginnings and establishing or, let’s be honest, re-establishing healthy habits.

Health goals don't just apply to physical and mental; you also want to practice financial health and have a plan to reach these goals. Whether it’s being more responsible with spending after this holiday season, paying off balances, or making the most of your rewards, these objectives will make you (and your wallet) feel good!

In this blog we’ll provide some healthy credit habits and let you know how Dover Federal Credit Union can support you in reaching your financial goals.

Financial Health Habit 1: Pay your balance in full each month

Paying off your balance in full each month helps you avoid paying interest. Interest can quickly add up, making it easy to fall into debt.

The Cash Back Mastercard® and Advantage Mastercard® from Dover Federal Credit Union offer a variable APR that is lower than the national average. This makes it easier to pay down balances, but the best strategy is still to pay your balance in full to avoid any interest charges altogether.

Financial Health Habit 2: Never miss a payment

Make at least the minimum payment on time, every time. If you’re trying to reduce the overall amount you owe, pay a bit extra and focus on one account at a time.

You may benefit from having your credit card bill paid automatically on or before the due date using automatic payments. Use Dover Federal Credit Union’s online banking to schedule these payments before or on the due date to ensure you never miss one.

Financial Health Habit 3: Avoid too many lines of credit

Having too many lines of credit can lead to high credit utilization, which can negatively impact your credit score making it harder to get credit in the future. Additionally, each application results in a hard inquiry on your credit report, which can lower your credit score.

Try to minimize the amount of credit you use, but don’t close your unused credit cards. This will impact the length of your credit file and your credit utilization ratio which also factors into your score.

Financial Health Habit 4: Safe credit use

How much credit you have available is another important credit score factor. Aim to keep balances as far below your credit limit as possible. Keeping your balances below 30% of your total available credit may help improve your credit score. Avoid exceeding your credit limit, this can result in costly fees and lower your credit score.

As you make changes, it will take time for your score to adjust. Scores update on a monthly basis, so be sure to track your usage regularly. You can check your credit report for free here.

Financial Health Habit 5: Practice self-discipline

This one must be the hardest of all. With instant gratification being so easily accessible, it’s hard to pass up that immediate feeling of joy.

Luckily, slow shopping is trending. Translation, it’s an approach to shopping emphasizing mindfulness. Pausing before making a purchase gives you time to compare prices and decide if you really want or need the item. Sometimes a little thought goes a long way.

Conclusion

Building healthy financial habits leads to numerous financial benefits, from building a strong credit score to earning cash back on everyday purchases. With Dover Federal Credit Union's Advantage Mastercard® and Cash Back Mastercard®, you can enjoy low rates, no fees, and fantastic rewards while avoiding the pitfalls of debt. Remember, the key to smart credit card use is paying your balance in full, paying on time, and keeping your utilization low. Partner with Dover Federal Credit Union and be well on your way to a healthy financial future.

For more information on Dover Federal Credit Union's credit card options, visit our Credit Card page to learn more and check your rates.

FAQs

1. How does the Advantage Mastercard® help me manage debt?

The Advantage Mastercard® offers a low APR and no hidden fees, allowing you to pay down balances without worrying about penalties. The 25-day grace period also gives you extra time to avoid interest charges.

2. What benefits come with Dover Federal’s Mastercard®?

Dover Federal’s Mastercard® cards offer perks like Mastercard ID Theft Protection™, Zero Liability Protection, and Mastercard Global Service™, providing security and peace of mind with every purchase.

3. How can I avoid debt when using a credit card?

To avoid debt, always aim to pay your balance in full each month, keep your credit utilization low, and monitor your spending regularly.

4. Is there an annual fee for Dover Federal’s credit cards?

No, both the Advantage Mastercard® and Cash Back Mastercard® come with no annual fees.

5. How does the Cash Back Mastercard® work?

The Cash Back Mastercard® gives you 2% cash back on everyday purchases. Rewards are automatically applied, making it easy to save while you spend.

6. What is the APR for Dover Federal’s Advantage Mastercard®?

The Advantage Mastercard® offers a variable APR that is lower than the national average.

Dover Federal Credit Union

For 66 years, Dover Federal Credit Union has served as a member-owned financial cooperative, designed to provide access to equitable financial products and services that create stability and lead to establishing generational wealth. Today we serve over 44,000 members, encompassing the military, Delaware families and Employer Groups. Serving Camden, Dover, Middletown, Milford, Smyrna & the New Castle areas in branch & online.