What's a Good Credit Card APR?

A good credit card APR (Annual Percentage Rate) is one that is relatively low compared to the average APRs offered on credit cards. The APR represents the cost of borrowing on your credit card, and a lower APR means you'll pay less in interest if you carry a balance or take out cash advances. What's considered a good APR can vary depending on several factors, including your credit score, the type of card, and the current economic environment.

Here are some general guidelines for what might be considered a good APR:

1. Excellent Credit: If you have an excellent credit score (typically 720 or above), you should be able to qualify for credit cards with the lowest APRs. These can range from around 12% to 15% or even lower. Credit cards with rewards or other perks may have slightly higher APRs but still relatively low compared to the average.

2. Good Credit: With a good credit score (usually in the 660 to 719 range), you may still qualify for credit cards with competitive APRs. These can range from the high teens to the low 20s.

3. Fair Credit: If your credit score is in the fair range (typically 580 to 659), you might still find cards with APRs in the mid-20s, but they may be higher than those offered to individuals with better credit.

4. Poor Credit: If your credit score is low (below 580), you may find it challenging to qualify for cards with low APRs. Many credit cards designed for people with poor or no credit may have APRs in the high 20s or even above 30%.

5. Promotional 0% APR Offers: Some credit cards offer 0% APR on purchases or balance transfers for an introductory period, which can be a great way to save on interest charges, especially if you plan to pay off your balance during the promotional period. After the introductory period ends, the APR will typically revert to a standard rate.

It's important to note that credit card APRs can vary significantly between different credit card issuers and even within their product lines. When evaluating the APR of a credit card, consider the following factors:

• Fixed vs. Variable APR: Some cards offer fixed APRs, while others have variable APRs tied to an index, such as the Prime Rate. Variable APRs can change based on changes in the index.

• Type of Card: Different types of credit cards, such as rewards cards or secured cards, may have different APR structures. Rewards cards may have slightly higher APRs but offer additional benefits.

• Penalty APR: Be aware of penalty APRs that credit card companies may impose if you make late payments or violate other terms of the card agreement. These penalty APRs can be significantly higher than the standard APR.

• Credit Card Fees: Consider annual fees, balance transfer fees, cash advance fees, and foreign transaction fees in addition to the APR.

Ultimately, what constitutes a "good" APR depends on your individual financial situation, creditworthiness, and spending habits. It's important to read the terms and conditions of credit card offers and choose a card that aligns with your needs and financial goals. If you plan to carry a balance, a lower APR is generally more favorable, but the best practice is to pay off your credit card balance in full each month to avoid paying interest altogether.