Professor Rubin Shares Credit Card Advice for Young Adults

Jason Rubin, adjunct professor in the Department of Accounting and Finance at the Feliciano School of Business, was recently featured in WalletHub’s article on the best credit cards for young adults, sharing insights on responsible credit card use and the importance of building strong financial habits early.

When asked whether all young adults should have a credit card, Rubin emphasized that credit cards can be a valuable financial tool, as long as they are used responsibly. “Yes, young adults should have a credit card, but only if they pay it off in full every month.”

According to Rubin, one of the biggest mistakes young adults make is believing that carrying a balance from month to month can help improve their credit score. In his own surveys of college students, Rubin found that roughly one in four respondents believed that carrying a balance would benefit their credit. In reality, he explained, payment history and credit utilization are among the most important factors in determining a credit score, making responsible repayment habits essential.

The consequences of carrying credit card debt can also extend beyond interest charges. With average credit card annual percentage rates (APRs) above 20%, carrying a balance can significantly increase the cost of everyday purchases. Rubin also noted that a lower credit score can result in higher interest rates on major loans later in life, particularly mortgages.

For young adults beginning to establish their financial independence, Rubin’s advice is straightforward: use a credit card like a debit card, and pay the statement balance in full each month. By developing responsible credit habits early, young adults can build financial credibility while avoiding costly debt that can follow them for years.

Read Professor Rubin’s full contribution in WalletHub’s “Best Credit Cards for Young Adults” article here: https://wallethub.com/best-credit-cards-for-young-adults#expert=Jason_Rubin