What's A Good APR For A Credit Card? Bankrate
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We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. Seventyfour/Adobe Stock Written by Personal Finance Contributor Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, Sept. 23, 2022 Edited by Associate Editor Sept. 23, 2022 Share
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PREV NEXT A credit card's APR, or annual percentage rate, quantifies the cost of taking out credit. In other words, if you carry a balance beyond your credit card's grace period, your APR will determine the amount of interest the card issuer can charge on that balance. If you want to know whether a credit card has a good APR, compare it with the , which is currently above 18 percent. If the card's APR is below the national average, that's an excellent APR. Even a credit card at the national average is a good option, especially if you're looking at one of today's best credit cards that comes with rewards, bonuses and perks. Try to avoid credit cards with APRs that are significantly above the national average. If you carry a balance on those cards, you could end up paying a lot of money in interest. That is why some credit cards offer an introductory period where they do not charge you interest on your purchases. Understanding will help you choose the credit card that is likely to offer the best APR package. Here are some of the things to consider when looking at APRs. What is a good credit card APR
While there are many different types of , the most common one people are interested in is the - the interest rate you pay on purchases. While it's easy to say that you should always look for credit cards that offer APRs at or below the national average, a good purchase APR for you really depends on your credit score. People with will likely be offered higher interest rates than people with . This means that a good credit card interest rate for a person with fair credit is different from a good interest rate for a person with excellent credit. If you want the best credit card APR possible, you might want to work on first. Once your FICO Score passes 670, your credit will move from "subprime" to "prime." This means you'll become eligible for prime interest rates. As your creditworthiness continues to improve, you'll be more likely to receive good credit card APR offers from lenders. How to compare credit card APRs
When you're comparing credit cards, take a look at each card's APR range. If you're in the market for one of the , for example, you might be considering the (16.99 percent to 27.99 percent variable APR) or the (18.99 percent to 25.99 percent variable APR). The lowest APR you can get with the Chase Sapphire Preferred is around the national average APR, but it's higher than the lowest APR you can get with the Blue Cash Preferred. You'll also want to check whether the credit card comes with an introductory APR on purchases and/or balance transfers. The Blue Cash Preferred Card, for example, offers 12 months of 0 percent intro APR on purchases and balance transfers (then 16.99 percent to 27.99 percent variable APR). The Chase Sapphire Preferred, on the other hand, doesn't have any 0 percent intro APR offers. It's also important to be aware of any that may be applied if you miss a credit card payment. Both the Blue Cash Preferred and Sapphire Preferred may charge a penalty APR of 29.99 percent (variable). With all of this in mind, decide which factors are the most important to you and choose your credit card accordingly. How to qualify for a good credit card APR
The best way to get a good APR is to . Here are some actions you can take right now to improve your score: Make all of your credit card payments on time, every time. makes up 35 percent of your credit score, so make sure it's positive. Avoid maxing out your credit cards. Keeping your balances low will improve your . Pay off as many of your outstanding balances as possible. When you prioritize existing debts, you are one step closer to becoming . As your credit score improves, look for credit cards with low interest rates. The better your credit score, the better interest rates you're likely to be offered. Paying off your balance each month is ultimately the best way to avoid interest entirely. Here are our picks for the . How to lower your credit card s APR
There are two ways to lower your credit card's APR. The first way to get a better APR on your credit card is by calling your credit card issuer and . If calling customer service and asking for a lower APR makes you nervous, keep in mind that a December 2020 from Bankrate.com found that 78 percent of cardholders who asked for a rate cut received one. If you're having trouble making your monthly payments, your issuer may consider you for a . Sometimes, you just need to ask. The other way to lower your credit card's APR is by . In some cases, lenders will offer better interest rates - including promotional 0 percent APRs - to their most creditworthy customers. Even if your current credit card issuers don't lower your APR as a response to your newly improved credit score, you'll be more likely to receive good credit card APRs when you apply for new credit cards or loans. Here are our picks for the . The bottom line
Generally speaking, a good APR for a credit card is at or below the national average. Choosing the best , however, depends on your credit score. Work on getting your score as high as possible to gain access to credit cards with lower interest rates. If you want to avoid paying credit card interest, can help you pay down your old balances interest-free - but the best way to avoid credit card interest is to never carry a balance at all. ON THIS PAGE
Written by Nicole Dieker Personal Finance Contributor Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, found a battered copy of Your Money or Your Life at the public library. In addition to writing for Bankrate, her work has appeared on CreditCards.com, Vox, Lifehacker, Popular Science, The Penny Hoarder, The Simple Dollar and NBC News. Dieker spent five years as writer and editor for The Billfold, a personal finance blog where people had honest conversations about money. Dieker also teaches writing, freelancing and publishing classes and works one-on-one with authors as a developmental editor and copyeditor. Edited by Associate Editor up next Part of Credit Cards Zero percent APR can be quite helpful, but requires a certain level of disc... Jul. 19, 2022 Credit Cards The best 0% APR credit cards let you avoid interest, but what else should y... Oct. 26, 2022 Credit Cards A 0 percent APR credit card offers more than savings in interest. Find out... Oct. 27, 2022 Credit Cards Learn about what key factors to consider before choosing a zero percent APR... Sep. 27, 2022 Eligibility and Benefit level varies by Card. Terms, Conditions and Limitat... Nov. 11, 2022