WalletHub Asks Joetta Forsyth for Advice on Sizing Up the Best Credit Card Rates

WalletHub assessed more than 1,000 credit card offers and asked expert Joetta Forsyth, associate professor of finance and author of Financial Wisdom, for her expertise on sizing up the best credit card rates. “Given how low-interest rates are, it would seem that credit card companies should lower their rates. However, credit card companies rely on credit ratings to assess which customers are a low credit risk, along with their payment history. Unfortunately, because of the unprecedented loss of jobs, their models of credit risk will not work. People who have had reliable jobs and payments are suddenly finding themselves in trouble. Credit card companies may be facing unprecedented defaults and are being especially cautious about putting themselves at further risk,” shared Joetta.

The best credit card rates are 0% APRs that last for 15 months or longer and the best regular interest rates on credit cards are below 14 percent. Many may be asking why aren’t there more credit cards with low fixed rates? The coronavirus epidemic has shown how people’s circumstances change and how quickly they can change. Credit cards involve a revolving loan and can continue indefinitely -- they must be able to respond to changing circumstances. Read more.