Sheridan, associate professor of economics, gave his insights in a recent report from WalletHub.
Associate Professor of Economics Brandon J. Sheridan was featured in a recent WalletHub report on the best low interest credit cards. Sheridan was asked if it ever makes sense to get a credit card with a low regular APR, versus a 0% credit card or paying in full.
“The short answer is no,” Sheridan told WalletHub. “The goal is to always pay your balance in full every month, to ensure you avoid interest charges. If you find yourself carrying a balance from month to month then it is probably time to revisit your budget and try to cut some expenses.”
Sheridan was also asked if credit cards have low interest rates when compared to loans. He said most individual loans a person can get will have lower interest rates than credit cards, except for something like a payday loan, which should be avoided.
“Credit cards do not require collateral, so they are going to charge higher rates than, for example, a home equity line of credit. Some credit cards will also offer you personal loans at lower rates than their credit card APR. However, keep in mind that these interest rates are still relatively high and should only be used for emergencies, and when you have a clear plan to repay the loan within the stated terms. Any time you use credit, your credit score may be affected,” Sheridan said.
His full insights and the full report can be found on WalletHub’s website.