Four Tips on How to Choose a Credit Card for Young Adults

Quick Summary: Learning how to choose a credit card is a vital financial step for young adults. Look for low fees, rewards, and credit-building options—credit unions provide beginner-friendly options to start smartly.

According to the Federal Reserve, 67 percent of young adults aged 18-29 own a credit card. If you’re planning to get one, making an informed choice is crucial. The right credit card can help you build credit, manage finances, and take advantage of rewards. But with so many options, where should you begin? Here are five essential tips to help young adults choose the best credit card and why a credit union is a great place to begin.

1. Look for Low Fees

For young adults, managing a limited income means avoiding credit cards with high annual or hidden fees. Credit unions frequently offer cards with lower fees compared to large banks, helping you save money as you learn to manage your finances.

2. Prioritize Credit Building

As a first-time cardholder, choose a card specifically designed for building credit. Many credit unions offer secured cards or starter cards, which are excellent tools for safely establishing a credit history. Building good credit now can open doors to better financial opportunities later.
3. Consider Rewards That Match Your Lifestyle
Choose a credit card that aligns with your spending habits. For example, if you spend a lot on groceries or streaming services, find a card that offers rewards in those categories. Credit unions often offer straightforward rewards programs without annual fees, making them an appealing choice

4. Compare Interest Rates

If you’re likely to carry a balance, prioritize cards with a low Annual Percentage Rate (APR). Credit unions are known to be member-focused and typically offer lower interest rates than traditional banks. This makes them a cost-effective option for young adults aiming to minimize debt.
Listen to The Perfect Bite’s podcast episode 98 where we shared financial mistakes in your 20s that you should avoid.

Why Start with a Credit Union?

Credit unions are nonprofit financial institutions that prioritize their members’ needs over profits. For young adults, this often translates to better rates, lower fees, and more personalized customer service. Additionally, credit unions are invested in financial education, offering resources to help you use your card wisely.

If you’re applying for your first credit card, CCCU is here to guide you to ensure the credit card -aligns with your goals and lifestyle. Speak with a CCCU financial representative at 702-228-2228 and start your credit journey on the right foot!