Clemens Kownatzki Weighs in on Smart Credit Card Use for Rebuilding Credit

Dr. Clemens Kownatzki, Associate Dean of Academic Programs and Associate Professor of Finance at Pepperdine Graziadio Business School, was recently featured in WalletHub’s expert panel for its article on the best credit cards for bad credit. Drawing on his extensive expertise in financial markets and personal finance, Kownatzki offered practical guidance for individuals looking to rebuild or establish credit using starter credit cards.

He emphasized that the same core principles of financial responsibility apply to all card types: always pay on time—ideally the full balance—and monitor your credit utilization closely. For those with low credit limits, such as $200–$300, it’s especially important to use only a portion of the available balance and to avoid missed payments, which can be more damaging for those with lower credit scores. He also highlighted the importance of maintaining older accounts and building a consistent history of on-time payments as key drivers of long-term credit improvement.

When comparing secured and unsecured credit cards, Kownatzki explained that while secured cards require a deposit, they provide useful guardrails and are generally easier to obtain. Unsecured cards, on the other hand, may offer higher limits and rewards but often carry higher fees and interest rates—along with more temptation to overspend. Ultimately, he advised, improving your credit comes down to using it wisely, avoiding debt on depreciating assets, and paying in full and on time.

Read the full article here.