Dover Federal Credit Union Credit Cards Can Help Build & Rebuild Credit

Credit Cards for Building Credit: How Dover Federal Can Help New and Rebuilding Credit Users

A man paying for a meal with friends with his Dover Federal Credit Union Mastercard credit card to help rebuild his credit.

Are you looking to establish or rebuild your credit responsibly? If so, this blog is for you!

Dover Federal Credit Union will give you some steps to begin your credit improvement journey and help you determine which products are best for you.

What is Credit and Why Does it Matter?

Credit is your ability to obtain the goods or services you want now, by promising to pay later. Good credit can give you access to more borrowing options, such as paying for a car, a home, or an education at the best possible interest rate or terms.

Your ability to obtain credit is based on your credit history.

Start Young

Dover’s Teen Checking account is a great way to learn how to handle a checking account for kids 13 to 17 years old.

This account is designed to help our youth move towards financial independence and features great benefits such as:

Super Saver Program
Youth Rewards Card
No minimum balance requirement
No monthly fee
50,000+ surcharge-free ATMs

This fee-free account allows youth to get a debit card as young as 13 years old and learn financial literacy at a young age to set them up for future success.

Establish Credit

If you've always paid with cash or checks to make purchases and haven't used credit, it's a good idea to start with a widely accepted credit card. And here’s why:

You may need good credit for routine matters, such as having utilities connected to your home.
Good credit is important to secure financing for big ticket items like a car or a home.
Depending on the company, employers may check the credit rating of prospective employees.
Renting an apartment may be easier, good credit tells landlords you’re a person likely to pay rent on time each month.
If you need a loan, banks may look more favorably upon you if you have a good credit history.

To establish credit, consider one of Dover Federal Credit Union’s Mastercard® options.

The Advantage Mastercard® comes with an unbeatable variable interest rate that is over 50% lower than the national average*, allowing you to pay down balances without accruing too much interest should you not be able to pay it in full monthly.

The Cash Back Mastercard® lets you earn back 2% on everything you buy. The cash back reward will automatically deposit into your Dover Federal Credit Union checking account on a monthly basis.

Rebuild Credit

When you experience financial hardship, your credit score can suffer. Rebuilding your credit can take time, there are no shortcuts or secrets.

Here at Dover Federal Credit Union, we can help! We offer Financial Wellness resources through our partnership with GreenPath Financial Wellness, with no-cost appointments to discuss your financial needs and offer products to help you get back on track.

Use Credit Responsibly

Building credit and maintaining good credit history are key factors to building your financial future. Once you start using credit, it’s essential to manage it properly.

Use your credit card to make purchases, but don’t go over your credit limit or let your balance owed get too high to manage.
Pay at least the minimum payment due each month, more if you can, and make sure you pay on time. The best way to reduce the interest owed on a credit card is to pay off the balance as quickly as possible by making more frequent or bigger payments. Otherwise, it could take years to pay off even a small credit card balance with only the minimum payments.

If you follow these tips, you will build a strong credit history that will help you meet your financial goals.

Conclusion

Starting your financial journey young can help establish financial literacy to carry you through life and prevent too many money mishaps.

Establishing strong credit and maintaining it responsibly gives you a good foundation for favorable financial experiences.

And if you must rebuild your credit history, you’re not alone. Life happens, and sometimes finances suffer, but there are resources and tools to help on your credit journey.

Dover Federal Credit Union is committed to helping you achieve financial success. Here you’ll find a wide range of helpful information, interactive tools, practical products, and more – all designed to help you increase your financial literacy and reach your financial goals.

FAQs

How does credit work?

Financial institutions extend credit by lending you money at an agreed-upon amount, rate, and payment term. When you borrow, you begin to establish a credit history: this is a record of your credit accounts, your payment history, and the details of how you manage each account. This information is gathered by the three national credit reporting agencies (Equifax, TransUnion and Experian) and the data is used to calculate your credit scores.

What affects your credit score?

Payment history, how much you owe, credit history, types of credit, and debt-to-income ratio (DTI).

How does the Dover Federal Credit Union 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.

What benefits come with Dover Federal Credit Union’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.

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.