Professor Jason Rubin Advises Young Adults on Responsible Credit Card Use
Jason Rubin, an adjunct professor in the Department of Accounting and Finance at Montclair State University's Feliciano School of Business, recently shared insights on responsible credit card use for young adults. Featured in a WalletHub article, Professor Rubin emphasized that credit cards can be valuable financial tools if used responsibly. His primary advice for young adults is to treat a credit card like a debit card, meaning they should pay the statement balance in full each month. He highlighted that a common misconception among college students, based on his surveys, is the belief that carrying a balance improves credit scores. In reality, payment history and credit utilization are crucial factors, making consistent, full repayment essential for building good credit. Carrying a balance, especially with average annual percentage rates (APRs) exceeding 20%, significantly increases the cost of purchases and can lead to higher interest rates on future loans, such as mortgages.
