People who hold credit cards with the lowest interest rates are not the ones you might expect – they're the borrowers who carry the highest credit card debt, according to new research.
The assumption has been that credit card users with high balances posed a bigger risk of defaulting on their payments, so banks would charge them a higher interest rate.
But a study of Ohio consumers suggests that savvy card users are shopping around, finding the cards with the lowest interest rates to minimize their payments, said Lucia Dunn, co-author of the study and professor of economics at Ohio State University .