Professor Michael D. Kinsman Discusses Opportunities and Good Practices for First-Time Credit Card Holders on WalletHub

“I received my first credit card from Standard Oil Company in the few weeks leading up to graduation from my undergraduate school. I went to my mailbox, and there it was—the opportunity to get gas and have time to pay for it later. My exhilaration was huge—finally, I am an adult.”

Pepperdine Graziadio Business School’s Michael D. Kinsman, PhD and Emeritus Professor of Finance and Accounting, says that first-time credit card holders can use their cards as a path for a lifetime of financial success.

“I would suggest that people get their first credit card as soon as possible and that they use that credit card regularly. If the first timer follows good finance rules by paying off the full balance of the credit card each month, they will establish good credit that will allow them to do even better things with their money - things like buying a house or a rental property.”

While there are clear advantages of being a credit card holder, Kinsman did warn of the euphoria and lack of knowledge that come with being a first-timer.

“The temptation to use a credit card as a place to get an (expensive) loan trips up some first-timers. It may be wise to defer getting that card until you have gained the financial will to use the card responsibly. In fact, I would avoid getting the card until you understand your finances and can make regular payments.”

Read the full article on WalletHub.