What Is A Good APR for a Credit Card

Credit cards are a convenient tool for a modern person. It allows you to get the money you need quickly. Such a concept as a credit card’s APR plays a key role in determining the cost of credit and affects the user’s financial strategy. The average credit card apr can vary depending on the needs and habits of each customer, and that’s why there are different types of credit cards APRs. Usually, the best APR you can get on a credit card is 0%. But this can only be for a certain period, from a few months to a year. This is especially beneficial if you plan to better your credit, make large purchases, and pay off the debt in full before the introduction is completed.

What Is the Average APR on a Credit Card?

Such a concept as the average annual percentage rate on credit cards can vary significantly depending on various factors. The user’s credit rating and the type of card play a particularly significant role here. For example, the average APR on credit cards in the United States usually ranges from 15% to 25%.

How Your Credit Card APR Is Determined

Interest rate setting is a strategic process performed by the bank’s team. Several important factors are taken into account. Below, we will look at what the company pays attention to and how it determines this value.

The prime rate

This is the key financial rate set by the Federal Reserve in the United States. Its average credit card interest rate changes every month based on economic trends. An increase in the prime rate results in higher interest rates in the banking system.


This concept is responsible for the client’s ability to repay the loan. Usually, the lender assesses the situation. They pay attention to such things as credit history, payment discipline, and other financial aspects. Excellent credit scores tend to lead to a low APR on credit cards. This will provide more favorable conditions.

Preset APR ranges

Some credit card companies set predefined APR ranges. This means that the APR you can get is determined based on your credit score and financial situation. For example, different types of credit cards have different ranges. Alternatively, it can be from 15% to 25%.

How Your Credit Affects a Card’s APR

When card issuers set your interest credit card amount, they will look at your lending history. A good credit score guarantees a lower the APR. If you have a lot of debt, the APR may also increase.

It is also important to familiarize yourself with the concept of FICO Score. This is a numerical assessment of your credit history. It takes into account various factors, such as credit card payments, debt, frequency of credit utilization ratio, and the number of credit cards. The best score, which is 660 and above, is considered a good one. You can also improve your credit score. Here are some tips on how to do it:

  • Pay your credit card bill in full and on time.
  • Use your credit card as long as possible.
  • Don’t open new credit unnecessarily.

Types of Credit Card APR

Once you get a card, you realize how flexible a payment method is and how many advantages it has. That’s why there are many types of them with different APRs, and they cover many customer needs. Below is a more detailed look at the APRs of many credit cards:

  • Purchase APR – It is the interest rate used to make purchases. It is available for both online and offline purchases.
  • Balance transfer APR – Its main point is to balance transfer credit card debt from one credit card to another. Usually, each credit card offers a lower APR in such conditions.
  • Cash advance APR – This is not a low-interest credit card at all, with a variable APR that goes up to a fairly high level. But you get cash from the credit card immediately.
  • Introductory APR – There is a credit card that offers such an intro APR on balance transfers. It can be zero percent or have a low interest credit for the first 12 months after opening the account.
  • Penalty APR – It is used for those who violated their credit card balance and did not pay their credit card bill on time. Or failed to fulfill other terms of the agreement. Such types of APR offer a high percentage.

What to Expect from Credit Cards with Low APRs

Before you start using this type of APR card, you need to understand the terms of its use. Such a card may be available to people with a high credit rating. In addition, it is usually necessary to have a stable income, and then the credit card issuer may approve it for you.

A credit card with a low APR is especially useful in situations where someone plans installment payments. In addition, a low APR allows you to save on interest for certain financial transactions, such as balance transfer credit сard. Here is a list of benefits that will stand out for you:

  • Stable payouts
  • Low cost of credit

One of the best low interest credit cards is the “Citi Diamond Preferred Card”. It provides a rate of 0% for 21 months. Then the rate will be from 13.74% to 23.74%.

What to Expect from Credit Cards with High APRs

High APR credit cards are a good option for those who like flexibility. They are often available to different consumer groups. Even for those who do not have a very good rating. Such credit cards tend to be useful for temporary financial needs. Also, if you repay the debt on time, it will lead to a good rating. And here are other important advantages:

  • Easy to get.
  • Change in the cost of interest.

A clear example is the “Chase Sapphire Preferred Car”. Its APR ranges from 16.99% to 23.99%. But it has many pleasant rewards and guarantees flexibility. For example, the received rewards credit card allows you to transfer and use at partner airlines and hotels.

How to Compare Credit Card APRs

The process of comparing lower credit and higher APRs is an important step. Here are the factors you should pay special attention to:

  • Annual percentage rate. For example, the Citi Simplicity Card offers a low fixed APR with no limit on the amount.
  • Interest on cash withdrawals. The Chase Freedom Unlimited credit card offers zero interest for the first 15 months.
  • Bonus offers. For example, Capital One Venture X offers a bonus in the form of miles that can be used for travel.
  • Collateral and credit limit. The Discover it Secured card allows you to set a collateral limit and increase the credit limit.
  • Interest-free period. The Citi Double Cash Card has such a period for new customers.

Qualifying for a Better Credit Card APR

The procedure of assessing the creditworthiness of borrowers is mandatory. That’s why we have prepared a list to help you better understand how to improve your creditworthiness and get better interest rates:

  • You need to pay your bills and debts on time.
  • You should have as few other types of credit cards APR as possible. You need to have a style that you can comfortably manage.
  • Do not exceed your credit limit too often and too high.
  • Analyze your credit report. This is a certain document that contains information about many of your financial aspects.

How to Avoid Paying Credit Card Interest Rates

Of course, each of us is always looking for ways to improve our lives. Now, we will tell you what you need to do to avoid all possible intro apr in the future:

  • You should keep track of the loan repayment deadline and avoid delays. Timely payment helps to avoid fines and additional costs.
  • Alternatively, you can develop a budget and plan your expenses.
  • Do not exceed the credit limit and pay the minimum debt on time.


What is credit card APR?

APR is the percentage rate that a credit union sets for the price of using borrowed funds through a specific credit card. This includes the credit card's interest on the borrowed funds and other possible costs.

What is a bad APR for a credit card?

This value is considered high when it exceeds the average level established in the entire market of the country. Usually, it can be more than 20%. This can lead to poor credit payments and outstanding debts.

What is a good annual percentage rate for a credit card?

A pleasant annual interest rate is considered a good APR when it is in the range of 15% to 20%. But remember, the lower the APR rate, the more profitable it is for you.

Can you avoid APR on your credit card?

To avoid these costs, you should consider credit cards with low APRs and use them responsibly. After all, it is almost impossible to avoid this value, even if you pay everything on time.