Associate Professors of Finance Dr. Thomas Patrick and Dr. Tae-Nyun Kim were recently featured in WalletHub, where they shared expert insights on building and managing credit effectively.
Dr. Patrick discussed the importance of establishing personal credit, particularly for individuals starting with no credit history. He explained that lacking credit can create challenges when applying for major loans such as mortgages or auto financing. He also addressed common concerns that discourage people from opening credit accounts, including privacy worries, fear of rejection, and uncertainty about managing spending.
Dr. Patrick encouraged individuals to build credit independently rather than relying solely on authorized user status and emphasized responsible habits such as requesting manageable credit limits and paying balances in full each month. He also noted that credit unions may provide more consumer-focused support than traditional banks.
Read the full feature on WalletHub to explore all of Dr. Patrick’s insights.
Dr. Kim focused on the role of credit cards for new business owners, explaining how they can help entrepreneurs build business credit, manage early cash flow challenges, and cover day-to-day expenses. While highlighting the convenience and flexibility of business credit cards, he cautioned that they should serve as a supplement to more stable financing options, such as loans or equity, due to their high interest rates.
Dr. Kim also emphasized the importance of choosing credit cards carefully by evaluating interest rates, rewards, and fees, noting that they are especially beneficial for smaller, service-based businesses or entrepreneurs with strong personal credit.
Read the full feature on WalletHub to explore all of Dr. Kim’s insights.