Look inside the wallet of the average person and chances are you’ll find at least one credit card. According to the Federal Reserve's 2025 Diary of Consumer Payment Choice report, 82% of U.S. consumers prefer credit as their go-to payment method. Why? For starters, convenience for things like shopping online or renting a car, to the ability to make large purchases, credit cards are a fundamental part of the way people do business in our modern economy. Then there’s the not-so-little benefit of security. Many credit cards offer zero liability, meaning you aren’t responsible for unauthorized purchases. And nothing beats credit cards for a quick rescue for emergency expenses.
But not all credit cards are alike and with so many options out there, it’s difficult to know which card is right for you. Here are all the things to consider when choosing a credit card:
1. Annual Fees
The best place to start when considering what criteria you should use in choosing a credit card is the annual fee. Be sure to understand the fee structure to fully realize your credit card’s benefits. Check whether your card charges an annual fee. If so, how much? Fees can vary from $25 per year to $500 or more, and these charges are automatically billed to your card. Some credit cards may waive the annual fee for the first year only or if you reach a specified spending threshold each year.
Prefer to go fee-free? Golden 1 credit cards come with no annual fees, so you don’t have to worry about any of these spending minimums.
2. Rewards Programs
Another key item on the list of what to look for when applying for a credit card is rewards. Many cards offer cash back or other perks that can add real value. These cards allow you to earn cash back or points for purchases made at specific retailers or in designated categories. For example, the Member Cash Rewards+ card offers you higher returns on gas and EV charging stations, groceries, restaurants, and food
delivery spending. Points cards enable you to redeem accumulated points for a variety of rewards, including gift cards, travel, merchandise, and even cash back. When you use the credit card regularly, you get the most out of your rewards potential.
Even with rewards, you can maximize your credit card benefits by paying your balance in full each month. Carrying extra debt for the sake of earning more rewards could cancel out the benefits of a rewards program. Treat your rewards like a bonus, rather than changing your financial habits to cash in.
3. Interest and Fees
A credit card’s financing fees consist of two key factors: grace periods and Annual Percentage Rate (APR). The grace period is the time between when you make a purchase and when interest begins to accrue, allowing you to pay your balance without incurring interest. Any balance from that billing cycle still remaining after your due date, will accrue interest. Note that grace periods do not apply to cash advances or balance transfers, which start accruing interest immediately from the transaction date. APR is the interest rate expressed as a percentage, which includes any associated fees. This percentage of your balance will be added to your bill unless you pay it off in full within the grace period.
4. Building Credit
There are many benefits to having good credit including lower interest rates and a greater ability to obtain an auto loan or mortgage. If you’re looking to build or rebuild your credit, you can search for cards designed for this purpose. All credit cards used responsibly can help improve your credit, but a secured card can be easier to obtain and can jumpstart your credit history.
For example, at Golden 1 you can apply for our Members First secured credit card with a deposit of $250 - $3,000. Your deposit serves as your credit limit. It earns dividends and is fully refundable, so you have peace of mind. Each month, your payment activity gets reported to the credit bureau, so on-time payments help you build a positive credit history.
Open a Golden 1 Credit Card
Finding the right credit card is a crucial part of your money management strategy. At Golden 1, we offer multiple credit card options to meet your needs and help you reach your goals. Get started by:
- Applying online
- Calling 1-877-465-3361
- Visiting a Golden 1 branch near you
