How to Use Your DFCU Account to Build Credit (Without Going into Debt)

A strong credit score is one of the most important tools you can have as an adult. It affects your ability to buy a home, get a car loan, rent an apartment, or even qualify for a job. But too often, people think they need to take on risky debt to build it.

Good news: you can build excellent credit without going into debt. And if you’re a member of Deseret First Credit Union, you already have the tools you need.

Here’s how to do it step by step—with no guesswork and no stress.

1. Understand What Builds Credit (and What Doesn’t)

Before you take action, it’s helpful to understand the five key factors that shape your credit score:

1. Payment history (35%) – Do you pay on time, every time?
2. Amounts owed (30%) – How much credit are you using vs. what’s available?
3. Length of credit history (15%) – How long have your accounts been open?
4. Credit mix (10%) – Do you have a variety of accounts (loan + card)?
5. New credit (10%) – Have you opened a lot of new accounts recently?

That means paying bills on time and keeping balances low are far more important than how much money you make.

2. Open a DFCU Checking and Savings Account

If you haven’t already, start by opening a checking and savings account with Deseret First. Even though deposit accounts don’t directly affect your credit score, they give you:

• A safe foundation for managing bills and income
• A relationship with a lender who understands your goals
• Access to credit-building products like secured loans and credit cards

Starting early helps you establish trust and financial history—especially important for young adults or returned missionaries.

3. Use a DFCU Secured Credit Card Responsibly

If you’re just getting started, a secured credit card is one of the safest, most effective ways to build credit.

Here’s how it works:

• You deposit money (e.g., $500) as collateral
• You get a credit line equal to that amount
• You use it just like a regular credit card
• You pay it off in full every month

Key tips:

• Only charge what you can pay off immediately
• Keep your balance under 30% of your limit (e.g., under $150 on a $500 card)
• Set up auto-pay to never miss a due date

Do this consistently for 6–12 months, and your score will grow fast—without carrying debt.

4. Consider a Credit Builder Loan

Another great option for first-timers is a Credit Builder Loan, available through DFCU.

• You “borrow” a small amount (e.g., $500–$1,000), but the funds are held in a secure account
• You make monthly payments toward it
• Once fully paid off, the funds are released to you—plus you’ve built credit!

This type of loan is ideal if you want to establish a credit history without spending money you don’t have.

5. Pay All Your Bills On Time (Even the Small Ones)

While credit cards and loans are the only accounts reported to the credit bureaus, paying all your bills on time—utilities, rent, phone plans—keeps your finances clean and can help if you opt into reporting tools like Experian Boost.

Late payments, even on a $10 phone bill, can stay on your report for years. Automate payments and set calendar reminders to avoid costly mistakes.

6. Become an Authorized User (Optional)

If you have a parent or spouse with strong credit and healthy financial habits, ask if they’ll add you as an authorized user on one of their cards.

You don’t need to use the card—just being attached to their account may help you “inherit” their positive credit history. (Make sure the issuer reports authorized users to the credit bureaus.)

7. Monitor Your Score and Stay Alert

Once you’ve started building credit, check your progress. DFCU members can access credit monitoring tools, or you can use free services like Credit Karma or your annual credit report.

Watch for:

• Inaccuracies or errors on your report
• Drops in your score that may indicate identity theft or missed payments
• Opportunities to increase your limit or improve your mix

Knowing your score helps you make better financial decisions—before applying for big things like auto or home loans.

8. Avoid These Common Credit Mistakes

Even well-meaning people can hurt their credit without realizing it. Be careful not to:

• Max out your credit card
• Co-sign loans you can’t afford to cover
• Open too many accounts at once
• Miss a payment—even by one day
• Close old cards that give your credit history length

When in doubt, ask DFCU for personalized guidance before making a big move.

9. Make It a Spiritual Stewardship, Not a Status Symbol

For Latter-day Saints and young adults, credit should never be about keeping up appearances—it’s about enabling good stewardship.

Strong credit allows you to:

• Secure fair rates on essential purchases (like a reliable car or safe housing)
• Avoid predatory lenders and unnecessary fees
• Provide for your family and serve more freely
• Give generously, live modestly, and stay financially free

10. Let DFCU Walk With You

We’re more than a credit union—we’re your financial partner. Whether you’re a teen opening your first account, a returned missionary building independence, or a parent preparing your child for adulthood, DFCU has tools designed for you.