Dr. Joetta Forsyth Provides Personal Finance Advice for Students

In a recent piece on WalletHub, Dr. Joetta Forsyth offers advice for students who do not have any credit, but are interested in applying for a credit card. When asked how important it is for students with no credit history to get a credit card Dr. Forsyth said “the important question is whether the student is absolutely sure they will pay the card off responsibly. It is better to have no history than a bad history.”

Building credit is important for renting an apartment, buying a house, and purchasing a car. WalletHub says that credit card companies “actually roll out the red carpet for students despite their lack of credit history because of students’ earning potential and decades of forthcoming financial independence, which can be very profitable for banking institutions.” Having good credit may also help workers secure a job that requires a security clearance or the handling of money.

There could be downfalls as Dr. Forsyth said “it is possible that a potential employer might not hire a graduate with bad credit. However, most employers are going to understand that college student job applicants, or recent graduates, are not going to have much of a credit history. What is particularly essential is to keep bad information from ending up on credit reports.”

Dr. Forsyth’s research interests include theory and empirical work in corporate finance and she is the author of Financial Wisdom: Personal Finance and Career Skills to Guide Teens and Young Adults on Their Journey to Success and Happiness.