The Art of Building and Maintaining Credit

DCU can help you with student loans, auto loans, and credit cards.

Before you get your first credit card or loan, your credit report – a record of your credit cards and loans, plus balances and payment history – is blank like an artist's canvas before adding paint. The way you use credit will determine your credit rating and whether you create a financial masterpiece or disaster. Your credit report and credit rating work together to determine if you are able to get a job, rent your own apartment, buy a car, and purchase a home someday.

brush up on credit basics
Parents introduce many teens and young adults to the credit world. For example, your dad may open a credit card with you, or your mom may be a co-signer on a student loan to help you pay for college. When you borrow money on credit, you are taking on debt. High-interest credit card debt can be troublesome if you do not pay off your balance or forget to make payments. Student loans are typically considered "good" debt, since you have time to pay them off after you are done with school at a lower interest rate than credit cards.

Before you choose a credit card or loan, it's important to note the interest rate. This is the rate you are charged for borrowing money. The higher the interest rate, the more money you will owe over time.

The best ways to handle credit and build a positive credit rating are to only borrow money when you absolutely need it and to make payments on time, or pay off the balance completely when you can. If you miss a payment, late fees and interest can build up and damage your credit rating.

strokes of genius
Maintaining good credit with a financial institution you can trust is important. DCU can help you with student loans, auto loans, and credit cards. Not only does DCU offer lower rates than many banks and credit card companies, PC Branch makes it easy to make payments from anywhere you have internet access. You can even set up automatic monthly withdrawals to pay loans to ensure you never miss a payment and keep your credit report a financial masterpiece. To learn more about DCU's loans and credit card options, visit dcu.org, stop by any branch, or call 508.263.6700 or 800.328.8797.