In a recent article, WNE Finance Professor Yixiao “Ethan” Jiang shared valuable insights for individuals looking to boost their credit scores using credit cards tailored for bad credit. Jiang emphasized the importance of maintaining a low credit utilization ratio—ideally below 30% across all credit accounts—and avoiding late payments, as these factors play a significant role in credit health. He also cautioned against frequent applications for new credit cards, as these can reduce the average age of credit accounts and negatively impact scores over time.
Jiang highlighted the difference between secured and unsecured credit cards for people with bad credit. While unsecured cards may be harder to obtain, secured cards offer a simpler approval process by requiring a one-time cash deposit. This deposit can often be refunded after a period of responsible use. Regardless of the type of card, Jiang advised users to consider the APR, fees, and rewards policy before making a decision.
As an educator, Jiang sees financial literacy as a critical skill, particularly for college students preparing for independent financial lives. “It’s essential to help students build smart financial habits early on,” he said. “The decisions they make in college lay the foundation for their financial health for years to come. Understanding credit and making sound choices today can open doors and opportunities they might not realize until later.”
