A woman hands a store clerk her credit card.

What Is a Good Credit Card APR?

5 min read

Last Updated: May 29, 2025

Table of contents

Key Takeaways

APR stands for Annual Percentage Rate and refers to the interest rate on your credit card.
A good credit card APR for you depends on many factors, including whether you typically carry a balance month to month or pay the full balance before the due date.
Your credit score may affect the credit card APR you’re offered.

Are you looking for the best credit card? One factor that may influence your decision is the card’s APR (Annual Percentage Rate), otherwise known as the interest rate.

If you know you’ll be carrying a credit card balance over multiple billing cycles, a low APR can be important. Your APR represents the amount of interest you must pay on your credit card debt. It’s helpful to know if you have a good APR.

What is an APR

Paying interest on the money you borrow is how a lender can afford to loan you funds. A creditor, like a credit card company, will put this interest into a yearly rate called the annual percentage rate (APR). Your credit card issuer must disclose your APR before they can activate your account, and it should also appear on your account statements.

APRs are the interest rates your credit card issuer may charge for different types of transactions. You may have a different rate depending on your transaction:

Standard purchase APR (for your everyday purchases)
Introductory APR (a special offer when opening your account)
Balance transfer APR (When you transfer debt from one card to another)
Cash advance APR (When you use your card at an ATM to get cash)
Penalty APR (if you don’t make the minimum payments on time)

Most people want to know their standard purchase APR because that will account for most of their transactions.

What is the average credit card interest rate?

When it comes to credit card interest rates, lower is better. But what is the average? The Board of Governors of the Federal Reserve System, which provides consumer credit data, includes interest rates in their monthly consumer credit report. They showed an average credit card interest rate of 21.58% APR (22.89% APR for accounts assessed interest) for year 2024.

Whether or not you receive a good interest rate may depend a lot on you: your spending habits, your debts, and your ability to make your monthly payment on your credit card. Understanding how credit card interest rates work may help you be a better credit consumer.

What determines your credit card APR?

Your credit card’s interest rate is determined by a variety of factors, some of which are within your control and some of which aren’t.

Lenders offer different interest rates, so it can be good to shop around and see which rates are the most attractive to you. If you don’t carry a balance and earning rewards is important to you, a higher interest rate could be worth it.

Learn More

Your credit score may also affects the interest rate a lender will offer you. This is the part you may have some control over. If you want a choice of different types of credit cards with more attractive features and interest rates, aim to raise your credit score into the top scoring range.

Also, read the fine print when you apply for a credit card, and again as you review your credit card statements. Most credit card interest rates can vary when the prime rate adjusts. The prime interest rate helps financial institutions determine how much interest they will charge borrowers.

What to expect from a credit card with a high APR

While your credit score may impact the interest rates you qualify for, some credit cards are also more likely to charge higher rates.

Credit cards with extensive rewards programs or elite perks may charge more interest. If you’re looking for a card with a long list of features, you may pay more interest. By repaying your balance in full each month, you could still avoid interest fees on a credit card with a high APR. However, if you carry a balance, it’s best to make sure your interest charges don’t offset the value of your rewards.

What to expect from a credit card with a low APR

If you have a high credit score, you might qualify for a lower APR credit card. There may be a trade-off, as low APR credit cards don’t always come with as many rewards or perks. However, if you typically carry a balance from month to month, a credit card with a lower APR could benefit you more than a card with extensive rewards.

Tips to lower your credit card APR

When you’re looking for a new card, it may pay to shop around to identify a good interest rate. Some lenders may offer a 0% introductory interest rate which will last for a specified amount of time. This gives you a chance to pay off a balance without owing interest. Others offer reward bonuses or discounts with certain retailers.

Did you know?

If you have high interest credit card debt, you may be able to transfer your balance to a credit card with a low intro APR on balance transfers and purchases. This may help you consolidate monthly credit card payments and save money on credit card interest.

Learn More

If you pay your credit card bill in full and on time every month, then typically the interest rate on your credit card matters less. Why? Because if you pay your credit card balance in full by the due date, your credit issuer won’t charge interest on purchases or apply any late fees. If this is how you use your credit card, then you should shop for a card with the best rewards rather than the lowest APR.

How to qualify for a better credit card APR

If you do carry a balance, as many credit card users do, try to pay more than the minimum monthly payment. When you show a long history of using your card responsibly you could get a lower interest rate from your lender.

Generally, practicing responsible credit card habits could help you build your credit score. That means making on-time payments and limiting your credit utilization ratio, among other things. A higher credit score could help you qualify for a lower APR.

However, keep in mind that all credit card issuers and lenders have different requirements for cardmembers, and even a good credit history doesn’t guarantee you’ll receive a good interest rate.

You can also ask for a credit limit increase, which—if you don’t use this as a chance to spend more—could lower your credit utilization ratio and help boost your credit score. When in doubt, see what your credit card company can offer you.

The bottom line

The best APR for you will depend on a lot of factors. This includes your credit history and credit score. For 2024, the average credit card APR was 21.58%. If you manage your credit responsibly and keep a high credit score, you should be able to get the most favorable rates from your credit card company.

Important Information >