Key takeout
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A good credit card APR is currently below the national average rate, above 20%.
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There are credit cards with an APR of less than 10%, but most of the time they are found in credit unions or small local banks.
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If you don’t have enough trust, you may receive a higher APR.
a Credit Card Annual Rate (APR) This is the fee you pay to borrow money with your card. If you have a balance that exceeds your credit card The era of blessingAPR determines the amount of interest the card issuer can claim with its balance. Other transactions, such as cash advances and late payments, are subject to their own APR, which can be higher than normal charges.
Find it How credit card interest works It will help you choose a credit card that is likely to offer the best APR rates.
What is a good credit card APR?
There are many different types of credit card APRs, but the most common rates people tend to see are Buy APR – Interest paid on purchases when transported as balance.
To see what APR is good for your credit card, compare it Average credit card APRcurrently about 20%. If your card’s APR is below the national average, it’s generally a good APR.
Even the national average credit card can be considered a decent option, especially if you are looking at any of them Best credit cards today It comes with rewards, bonuses and perks.
However, 20% APRs are consistent with the current national average, so it could be a good rate, but we would like to try out the APRs below. And, without a doubt, they try to avoid APR cards significantly above the national average. you Balance With these cards you will end up paying a lot of interest.
Different APR types
A purchase APR is just one type of interest rate that you need to consider with your credit card. We also recommend paying attention to other APRs that may affect your credit card and determining a good APR for your credit card.
| Cash Advance April | Interest you pay Get cash from your credit card. It is often much higher than the purchase APR, usually around 29.99%. |
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Balance Transfer APR |
This is a temporary APR that spans your length Balance Transfer The period before returning to the standard variable APR. It applies only to the balances transferred, assuming that it meets the issuer’s criteria. |
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Introduction April |
APRs that apply only to a limited time before returning to the standard variable purchase APR. This may be just as low 0% Applies to purchases, balance transfers, or both. |
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Penalty APR |
a Penalty APR This applies only if payment is delayed or if there is a credit card default. Usually the highest possible interest rate (approximately 29.99%). |
| Buy now and pay in April |
This is a specialized credit card APR that offers this type of payment plan. Publishers such as Chase, Citi, American Express have their own versions. This can be a short-term fixed introductory APR or a variable APR specified in credit card conditions. |
Regarding the implementation period for purchase or balance transfer, Zero interest rates A limited period is a great way to save on large purchases or debts you have transferred to your card. However, Cash Advance and Penalty APR are some of the highest interest rates shown on credit cards.
How to set up APR
When you apply for a credit card, the card issuer will Strict enquiries About your credit report. Credit history details and information provided in the credit application will inform you of the approved APR.
Credit card issuers set up their APR by adding profit margins (usually around 12-13%). Prime Rate. Like other funding options, a good credit score to a good credit score often ensures a lower credit card APR than a bad credit.
How to find and calculate APRs
If you don’t know what the interest rate for each of these different types of APRs on your card is, one of the easiest ways to check your APR is to check your credit card Fees and Fees Documents. Once you open an account, the APR must be listed in the Schumerbox of the Terms of the Card, along with the Cash Advance and Penalty APR.
You can also:
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Check your monthly card statements.
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Please call the issuer directly using your customer service number.
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Check the card’s mobile app or website and find account details.
How APR affects card balance
Carrying your balance to your card will accumulate interest. If you’re not careful, card APRs can cost you a lot over time. This adds to the balance of cards and is usually complicated every day. That’s why Bankrate credit card writer Seychelles Thomas decided to make her a high profit. Credit cards are closed By the publisher.
When I was in my early 20s, I was on a whim to get an Express Store card. After the initial excitement of being approved faded, I began reading the statements on my card and noticed a rather high interest rate. That’s when I checked the conditions and noticed an absurdly high APR. After that, there was a rather small limit anyway, so I chose not to use it and I let the publisher close it. Today’s APR for the same card is 35.99%.
– Seychelle Thomas, CFEI®, Bankrate Credit Card Writer
The amount of interest charged will vary depending on your card APR, balance size, and monthly payment size. The key to avoiding installation interest is to pay your balance on time each month.
Most card issuers will provide a grace period before interest is applied to your purchase. However, since paying the minimum amount can be the only option, a card-friendly APR can save you from increasing your debt by keeping your interest low.
If you are considering a very low (less than 10%) card with a good credit card, be careful of fine printing. These cards may not have a grace period. In other words, you will accumulate interest as soon as you buy it.
Please be aware
As different transaction types mean different APRs, the amount of interest charged also depends on what transactions you are creating. Most cards offer different APRs for purchases, balance transfers and cash advances, so check your card agreement before using your card.
How to compare credit card APRs
When comparing credit cards, it is important to start with the APR range of each card and weigh the factors that can save money and make card usage more expensive. However, APR is not the only consideration, which is good for credit cards. It’s a great approach to looking for a card with a low APR. We recommend considering a high APR card with rewards that suit your lifestyle.
For example, compare the two Best cashback credit card:
| Card name | April | Reward |
| ‘data-type = “link” data-position = “18” data-name = “article-link” data-outcome = “internalllink” data-beam-uid = “2” data-beam-event = “click”>Wells FargoActiveCash® Card | 14.99%-24.99% (variable) |
2% cashback on all purchases. 0% intro APR on purchases and qualification balance transfers for 12 months after account opening. |
| ‘data-type = “link” data-position = “19” data-name = “article-link” data-outcome = “internalllink” data-beam-uid = “2” data-beam-event = “click”>City Double Cash® Card | 18.24%-28.24% (variable) |
Up to 2% cashback on all eligible purchases (1% on purchase, and an additional 1% if you purchase). 0% APR for 18 months with Balance Transfer (transfer must be made within 4 months of account opening). |
City Double Cash offers a slightly lower normal APR, but the APR at purchase does not offer an introductory APR. Only balance transfer. Also, unlike Wells Fargo Active Cash, which prepaids 2% cashback, Citi Double Cash only offers a total of 2% cashback after paying off your purchase.
The top APRs in Wells Fargo Active Cash may be worth taking advantage of the card’s simplified 2% cashback reward rate and 12-month Intro APR period for both purchase and balance transfers (after which there is a 19.24%, 24.24%, or 29.24% variable APR).
If you are planning to do Balance Transfer You also need a longer payoff period, but you can benefit from the longer APR balance transfer period in Citi Double Cash, in addition to the lower variable APR.
Please be careful about Penalty APR If you missed your credit card payment, it may apply. Citi Double Cash charges a penalty APR of up to 29.99% (variable). However, Wells Fargo Active Cash does not have a penalty APR (but you can charge up to $40 for late payments).
Good APR for your credit bracket
Depending on where your credit score is, you may not always be able to avoid cards with high APR. Data from the 2023 Consumer Financial Protection Bureau (CFPB) Consumer Credit Card Market Report shows that cardholders with low credit scores had credit card APRs above the national average.
| Credit score range | Average APR |
| Super Prime (800+) | 19.6% |
| Prime Plus (720-799) | 21.9% |
| Prime (660-719) | 23.8% |
| Near Prime (620-659) | 24.6% |
| Subprime (580-619) and Deep Prime (579 or less) | 21.6% |
| whole | 21.5% |
In many cases, cards with a high APR can still provide value to the cardholder. Store and retail credit cards That’s a good example. In contrast to the general spending category, reward opportunities specific to a particular brand or store are easier to qualify than standard reward credit cards.
Bankrate’s senior credit card editor Brooklyn Lowery admits that despite the high APR, Banana Republic’s reward Mastercard is still worth it.
My four family shop a lot with the brand family of Gap Family. The rewards offered by the cards are a great discount on our purchases. There is no annual fee. I always pay the full balance of the statement so the exorbitant interest rates won’t affect me. Overall, this card adds the length of my credit history and allows me to earn rewards for shopping I do anyway.
– Brooklyn Lowry, Senior Credit Card Editor
However, there is no low stress that storing credit cards is not for everyone. “We don’t recommend cards or store cards for most people,” she says. “A general reward card or card for building credits is usually a better option, and often the rates and fees are much better.”
Credit Construction CardAs Lowery said, another good example of a card that tends to have a high APR, but is still worth carrying. These cards often feature low credit limits and high fees along with high APR in exchange for allowing people with poor or fair credits to qualify. If you are trying to build or rebuild your credits, it is a trade-off that will ultimately work your way into your advantage.
How to qualify for a great credit card APR
Card APR depends on many factors, including credit score, advance relationship with issuer, Federal Reserve Prime Rate, and age (below 21 years of age are more likely to face a higher APR with credit cards). However, ultimately, if you get a good purchase APR, it depends on your credit score. People with Sub-average credit score They tend to offer higher interest rates than those who say Good or excellent credits.
If you want the best possible credit card APR, try to improve your credit score first. After you FICO score Once you reach 660, your credit will move from the credit classification “Subprime” to “Prime”. Your Prime Credit Score unlocks PRIME eligibility, namely low interest rates. As your creditworthiness continues to improve, you may receive even stronger credit card offers from your lender.
Therefore, by developing, we focus on building or maintaining solid credit Good trust habitsto ensure you, etc.:
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Minimum payments for credit card statements are paid on time each time. Your payment history accounts for 35% of your credit score, so make sure it’s a positive.
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Do not maximize your credit card. Keeping your balance low can improve you Credit usage rateaffects your credit score.
- Please repay as many unpaid balances as possible. If you prioritize repayment of existing obligations, avoid unnecessary interest, fees and penalties.
- Look for improved credit scores Low interest credit cards That you can qualify. And don’t hesitate to contact existing card issuers. Negotiate low interest rates If your credit score improves.
Conclusion
Generally, good credit card APRs are below the national average. However, the APR you get in the end depends on your creditworthiness and credit history.
We will work to improve our score to the highest possible number to unlock access to low-interest credit cards. a Balance Transfer Credit Card It will help you pay off your old balances interest-free, but the best way to avoid credit card interest is to carry no balance at all.