What Is a Good APR for a Credit Card?

ByRajiv Baniwal

Updated: March 21, 2024

Edited byErika Hearthway
Reviewed byBrett Holzhauer, CPFC
ByRajiv Baniwal

Updated: March 21, 2024

Edited byErika Hearthway
Reviewed byBrett Holzhauer, CPFC

Advertising & Editorial Disclosure

Data released by the Federal Reserve suggests that the average credit card APR across all accounts was 14.61% in May 2021, and it stood at 16.30% for accounts that assessed interest. A good credit card APR as of now is one that falls below these numbers.

If a credit card has a higher-than-average APR and you carry forward balances from month to month, you stand paying more as interest charges over time. However, you might be able to offset a card’s high APR by making use of its rewards program, bonuses and additional perks.

Once you know how credit card interest works, you will find yourself better positioned to select a suitable card.

On This Page:
MoneyGeek's Takeaway

lowInterestAPR icon

The higher your credit score, the lower the APR on a credit card you stand to get.

grocery icon

Different APRs tend to apply on purchases, balance transfers and cash advances.

highInterestAPR icon

Exorbitant penalty APRs may apply in cases of late and returned payments.

What Is a Good Credit Card APR?

What qualifies as a good APR for credit cards depends on your creditworthiness. This is because credit card providers look at your credit score before deciding what APR to apply on your card.

If you have an excellent credit score, you might benefit by getting a low APR. On the other hand, people with poor to average credit scores tend to get high APRs. Let's take the Chase Sapphire Preferred Card credit card as an example. It currently comes with a variable APR of 15.99% to 22.99%. This means that the better your credit score, the lower the APR you might be able to get.

One way to get a credit card with a good APR is to improve your credit score. Ways to do this include:

  • Fixing errors on your credit reports
  • Paying your bills on time
  • Reducing your credit utilization ratio
  • Minimizing applications for new credit
  • Keeping older accounts active
  • Overriding the effects that come with a thin credit file
Average Interest Rates (APRs) by Credit Score

Your credit score may play a significant role in the APR that applies to your credit card. While APRs are good indicators of card providers’ pricing models, effective interest rates serve as more accurate measures because they also take into account the impact of cash advances and time-bound promotional offers.

Data released by the Bureau of Financial Protection surrounding consumer credit cards shows that cardholders in the deep subprime category pay the highest effective interest rates, and the reverse holds true as well. The corresponding table shows numbers from 2018.

Average Effective Interest Rates by Credit Score
Interest Rate

Super Prime (720 or higher)


Prime (660 to 719)


Near Prime (620 to 659)


Subprime (580 to 619)


Deep Subprime (579 or lower)


The overall effective interest rate across all credit score categories during the same period was 15.6%.

>> MORE: How Does Credit Card Interest (APR) Work?

How to Compare Credit Card APRs and APR Offers

Credit card APRs can vary considerably based not just on your credit score but also on the type of transaction. For instance, your credit card may have different APRs for purchases, balance transfers and cash advances. The APR on cash advances is typically the highest. Some cards come with 0% intro APR offers on purchases and balance transfers. You also need to account for any possible penalty APR that comes into effect in cases of late and returned payments.

Consider these examples to see how APRs vary across categories. All the APRs listed here are variable and subject to change.

Blue Cash Preferred Card from American Express
  • Purchase APR - 13.99% to 23.99%
  • Balance transfer APR - N/A
  • Cash advance APR - 25.24%
  • Penalty APR - 29.99%

Chase Sapphire Preferred Card Credit Card
  • Purchase APR - 15.99% to 22.99%
  • Balance transfer APR - 15.99% to 22.99%
  • Cash advance APR - 24.99%
  • Penalty APR - Up to 29.99%

U.S. Bank Visa® Platinum Card
  • Purchase APR - 14.49% to 24.49%
  • Balance transfer APR - 14.49% to 24.49%
  • Cash advance APR - 25.99%
  • Penalty APR - N/A

Simmons Visa® Card
  • Purchase APR - 8.25%
  • Balance transfer APR - 8.25%
  • Cash advance APR - 12.25%
  • Penalty APR - N/A
What to Expect with Better Interest Rates

lowInterestAPR icon

What to Expect From Cards With Low APRs

Most low-interest credit cards offer little in terms of additional features. However, these cards allow you to save money if you plan to keep revolving balances in your accounts. If you get a card with a 0% APR offer, you get to pay no interest on outstanding balances during the promotional period. This may apply to purchases and balance transfers, typically from 12 to 18 months.

If you plan to pay your balances in full each month, you might be better off looking for a card that comes with added perks.

highInterestAPR icon

What to Expect From Cards With High APRs

You might need to pay a high APR if you have poor creditworthiness or if you’re looking for a premium card. In the case of the former, your card might come with a high APR and still not offer additional benefits.

Premium cards that come with high APRs provide different types of benefits. These may include high reward rates, travel credits, airport lounge access, priority boarding, purchase protection and travel insurance.

If you plan to keep a revolving balance in your account from one month to the next, getting a card with a high APR might not work well for you as you could end up paying a tidy sum as interest over time.

mglogo icon

"The most effective way to earn credit card rewards is to avoid paying any interest or fees. If you are able to not pay any fees and put as much spending on your credit card as possible, you are effectively practicing “credit card hacking.”" — Brett Holzhauer, Credit Card Journalist

What You Need to Qualify for Good APR Credit Cards

Not all credit card providers use the same criteria when deciding what APRs to apply. However, you may improve your credit score, and thereby your chances of getting a good APR, by following some basic measures.

    mobilePay icon

    Timely payments

    Steer clear of defaulting and make all your payments on time (including utility payments).

    creditApproved icon

    Past due accounts

    Catch up on any past due accounts.

    graphCard2 icon

    Pay down balances.

    Start by reducing outstanding amounts of accounts that charge high interest.

    autopay icon

    Credit utilization

    Keep your credit utilization ratio below 30%.

    signupBonus icon

    Credit applications

    Do not apply for credit in quick succession — you should ideally wait for six months between applications.

Other Questions You May Have About Good Credit Card APR

Why is it important to consider the APR when comparing credit card offers?
Can you ask for a review of your APR to go down on a credit card?
Is it wise to apply for a high APR credit card to boost your credit score?
Does APR matter if you pay on time?
Does APR matter if you pay in full?
Do you want a high or low APR on credit cards?
What is a high APR for a credit card?
What is the average APR for a credit card?
What is a bad APR for a credit card?
Can a store credit card raise the APR for any reason?
Is it true that military members only have to pay 8% APR for credit cards?

Next Steps

Now that you know how APRs may vary based on credit scores and the additional perks that come with a credit card, look for a card with a good APR based on your specific requirements. If you plan to make your payments in full every month, you may even consider getting a card with a high APR. In any scenario, make sure you compare your options based on other features as well.

Compare & Review Credit Cards

MoneyGeek simplifies how readers look for credit cards that best suit their financial goals and spending habits. To provide the best information, our experts review and analyze the spending trends of students based on data provided by the Bureau of Labor Statistics (BLS). We also stay up-to-date on the offers, rates and fees of more than 80 student credit cards.

Learn More About Credit Cards

The MoneyGeek editorial team is continually reading up on the latest trends and news that surround the world of credit cards. It does this with the aim of responding to reader queries efficiently and in a timely manner. If you have any questions about credit cards, you can count on our team to provide the right answers.


About Rajiv Baniwal

Rajiv Baniwal headshot

Rajiv Baniwal is a journalist who has been covering financial topics for over 15 years. Meticulous in his research, he provides accurate and up-to-date information. His expertise includes mortgages, loans, credit cards, insurance and international money transfers.

    *Rates, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available.
    Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, credit card issuer, hotel, airline, or other entity. Learn more about our editorial policies and expert editorial team.
    Advertiser Disclosure: MoneyGeek has partnered with CardRatings.com and CreditCards.com for our coverage of credit card products. MoneyGeek, CardRatings and CreditCards.com may receive a commission from card issuers. To ensure thorough comparisons and reviews, MoneyGeek features products from both paid partners and unaffiliated card issuers that are not paid partners.