What Is a Good APR for a Credit Card?
Updated March 22, 2024 at 11:37 am
Credit card interest rates tend to be higher on average than other financial products that let you borrow money, meaning even a “good” credit card APR can leave you paying off debt for longer than you’d prefer.
In fact, Federal Reserve data shows the average credit card interest rate for accounts that assessed interest came in at 22.16% in May 2023—and there are plenty of rewards credit cards with advertised rates that are much higher than that. Further, some credit cards come with a 0% APR for a limited time, but rates increase once the introductory offer ends.
Learning how to qualify for a good APR and comparing your options upfront can help you avoid paying large sums in interest in the future.
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Vault’s Viewpoint
- The average credit card APR on accounts that assessed interest was 22.16% in May 2023, so any rate lower than that is better than average.
- However, paying a credit card APR that is lower than average can still make everything you buy cost considerably more if you carry a balance.
- To get a good interest rate on a credit card—which could be as low as 0% for a limited time—you’ll need to get your credit score in the best possible shape.
What Is a Good APR for a Credit Card?
While any credit card interest rate below the national average may be considered “good” to some, locking in the lowest possible rate you can qualify for helps you avoid having everything you buy cost way more than it should.
For example, paying down $10,000 in credit card debt at 22.16% with a monthly payment of $200 would cost you $16,654 in interest—and take you 134 months to pay off. This means that you would actually pay $26,654 total over time.
Also know that the best possible interest rate on a credit card is 0%, although you can only get this rate for a limited time period of up to 21 months. That said, not everyone can qualify for 0% APR credit cards, nor can everyone qualify for cards with the best rewards and perks.
How To Qualify for a Credit Card With a Good APR
APRs are, in part, determined by your credit score, so it’s crucial to have a good credit score if you’re hoping to receive a good APR as well. A few tips for improving your credit score include:
- Paying all your bills early. Your payment history is the most important determinant of most types of credit scores, including FICO Scores and VantageScores. As such, you’ll want to do whatever it takes to pay all your bills well before they’re due.
- Lowering the amount of debt you have. How much revolving debt you have can also impact your credit score, either positively or negatively. To get the best results with your credit score, focus on paying down debt until your credit utilization ratio is at or below 30%.
- Pausing credit card activity for a while. Stop applying for new cards and refrain from closing accounts you already have. These moves can temporarily harm your credit, whereas pausing credit card activity for several months or longer will give you a chance to boost your score.
How To Compare Credit Card APRs
As you start doing the research required to find the right card for your needs, you’ll quickly notice that the best offers seem to be all over the place. Some credit cards offer travel rewards or cash back, whereas others come with a 0% APR for up to 21 months. Even then, some 0% APR credit cards offer this introductory rate solely on new purchases or solely on balance transfers.
If you’re specifically scoping out credit cards with the lowest possible interest rate, you may want to focus on cards that offer a 0% intro period that works for your needs. This advice applies whether you want a low APR on purchases, balance transfers or both. That said, you can also compare cards that offer the lowest possible interest rates on an ongoing basis instead.
Once you have time to browse credit cards with the best APR offers on the market today, you’ll want to compare them based on:
- Variable APR
- Length of the intro APR offer (if applicable)
- Whether the 0% intro APR applies to purchases, balance transfers or both (if applicable)
- Annual fees
- Rewards
- Cardholder perks and protections
Which Credit Cards Have Good APRs?
Remember that some credit cards offer good intro APRs that eventually revert to higher variable rates, whereas others offer relatively low variable APRs on an ongoing basis. Here are some examples:
- Capital One Quicksilver Cash Rewards Credit Card: If you’re willing to work with a shorter intro APR period, you can earn rewards with the Capital One Quicksilver. This card offers 1.5% cash back on all purchases for no annual fee, and cardholders get a 0% APR on purchases and balance transfers for 15 months (followed by a 19.49% – 29.49% variable APR). An intro fee of 3% of the amount of each transferred balance that posts to your account during the first 15 promotional months that your account is open applies; after that $0 at transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you
- Navy Federal Credit Union® Credit Card: This no-annual-fee card doesn’t offer rewards, but it has an ongoing variable APR that is well below average. Cardholders can enjoy a variable interest rate of 11.24% to 18.00% based on their creditworthiness. Note, you have to be a credit union member to qualify for this card.
- Wells Fargo Reflect® Card: The Wells Fargo Reflect offers a generous intro APR period on purchases and balance transfers for no annual fee, though you won’t earn rewards for your spending. Specifically, cardholders can get a 0% intro APR on purchases and qualifying balance transfers for 21 months from account opening, followed by a variable APR of 17.74%, 24.24% or 29.49%.
Frequently Asked Questions
Is a 10% Credit Card APR Good?
A credit card with a 10% variable APR is almost unheard of, but it would still be incredibly attractive to consumers nonetheless. After all, this rate is well below the current national average for credit card accounts that assessed interest.
How Can You Avoid Paying a High Credit Card APR?
You can avoid paying exorbitant credit card interest rates in a few ways. First, you can sign up for a credit card with a low interest rate or a 0% APR for a limited time. Second, you can pay your credit card bill in full by your payment due date each month to avoid paying interest altogether.
Can You Get a 0% APR With a Loan?
Personal loans never offer 0% APRs—not even for a limited time. Meanwhile, many credit cards feature 0% APR offers that only last for a specific period of time (usually 12 to 21 months), after which they revert to a variable interest rate.
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
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