What Is a Good APR for a Credit Card?
5 Min Read | Published: April 25, 2025
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Understand what a good APR for a credit card is, how it’s determined, and ways to secure a lower interest rate on your credit card.
At-A-Glance
- Your credit card’s APR can vary, depending on factors like your credit score, card type, and whether the interest rate is fixed or variable.
- A “good” APR is relative, but anything below the national average may be considered favorable.
- You may be able to lower your APR by improving your credit score, negotiating with your card issuer, or using a balance transfer card.
When you’re swiping or tapping your credit card to buy everything from your post-workout smoothie to a new pair of jeans, it’s easy not to think about paying interest. But when your monthly credit card statement arrives in your mailbox or inbox, reality hits. Your card’s annual percentage rate (APR) is the amount you’ll be charged on purchases if you can’t pay your card’s balance in full each month.
But what’s a normal APR for a credit card, and how do you know if your card has what’s considered a good rate?
What Factors Determine Your Credit Card APR?
APR ranges may vary widely depending on several factors, these may include:
- Your Credit Score
Credit card holders with higher credit scores may be offered a lower APR than those who are working to improve their credit. A history of responsible borrowing and timely payments could help you qualify for a lower APR in time. - The Transaction Type
Many people are aware of APR as it pertains to the amount you’ll pay on the balance due. However, there are other types of APR that apply to different transactions, including balance transfer APR, cash advance APR, penalty APR, or Buy Now Pay Later APR. If you plan to make any of these transactions with your card, it’s important to understand the unique APR and how it may differ from your purchase APR. - Fixed or Variable Rates
The interest you’ll pay on a credit card can be fixed APR or variable APR. A fixed APR means you’ll pay a set interest rate for the life of the loan, a common practice for mortgages and auto loans. Variable interest rates are more common for credit cards, and they fluctuate based on market benchmarks, like the prime rate. Variable APRs can increase or decrease with broader market conditions. - The Card Type
Certain credit cards like rewards credit cards or those that have a higher card level may have higher APR ranges than simpler credit cards without lots of perks or benefits. Individuals looking to improve their credit might also notice higher APR ranges on secured credit cards.1 - Your Card Issuer
Each card issuer defines APR ranges for credit cards. For example, a card issuer might indicate a variable APR range of 20.99% to 29.99%. However, where you fall in that range may depend on your creditworthiness and other factors, and it’s ultimately determined by your card issuer when you apply.
Did you know?
You may be able to get a glimpse at your potential credit card APR if you prequalify or get preapproved for a card. Prequalification is a process that allows lenders to perform a soft credit check, which won’t impact your credit score, and then let you know the likelihood that you’ll be approved for certain cards.
What’s a Good APR for a Credit Card?
The reality is that what’s considered a good APR for a credit card is relative, though lower APRs are often considered better. For example, if you’re working on rebuilding your credit score after a time of financial hardship, you might be ecstatic to qualify for a credit card APR of 22%, while your friend who obsesses over their 800 credit score might only be satisfied if they can get a card with an interest rate of less than 20%.
In November 2024, the average credit card APR was 21.47% for all accounts.2 You might consider your credit card APR good if it falls below the national average. Technically, the lowest credit card APR is 0%, but it may only be offered during a promotional period to customers who qualify based on their high credit scores.
Card issuers divulge APR ranges when you apply for a card. But you can also calculate interest rates on your own. If you’re not much for manual calculations, a credit card interest calculator like the one below can help.
How to Qualify for a Lower APR
If you want to qualify for a card with a lower APR, there are a few steps you can take.
- Improve Your Credit Score
Since your credit score is a determining factor in being approved for a credit card, card issuers may offer lower APRs to those with higher scores, as it can be a sign of financial responsibility. To build your credit score, take steps like making on-time payments every month, keeping your credit utilization low, and only applying for loans or credit when you need it. - Contact Your Card Issuer
If you have a history of responsible borrowing with your card issuer, you may contact them to try to negotiate a lower interest rate. It’s up to the card issuer if they choose to grant the request, but a track record of timely payments may help improve your chances. - Consider a Balance Transfer Credit Card
Balance transfer credit cards may help you lock in a lower interest rate for a set period. If you qualify based on your credit score and other factors, you may be able to take advantage of a promotional window with a low or even 0% interest rate. - Pay Your Balance Monthly
While paying your balance due might not actually change your interest rate, it is one way that can help you avoid paying interest altogether. Making timely payments and paying the balance in full could also help improve your credit score over time.
Frequently Asked Questions
You won’t pay APR if you pay your credit card balance on time and in full each month. However, if you only pay the minimum amount due, you may face interest charges on the remaining balance that carries into the next month.
The Takeaway
The APR for a credit card varies widely depending on your credit score, the card issuer, and other factors. And what’s considered good is ultimately up to you. If you work on responsible financial management and improve your credit score, it could help you qualify for lower APR credit cards in the future.
1 “What Is a Good APR for a Credit Card?,” Experian
2 “Consumer Credit - G.19,” Board of Governors of the Federal Reserve System
Brooke Joly is a writer on a mission to unravel the mysteries of personal finance and make them accessible to the everyday reader. When she’s not behind the keyboard, you can find her enjoying the outdoors in Charleston, SC.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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