What is a Good APR for a Credit Card?

APRs, or annual percentage rates, are important to consider when applying for a credit card. Essentially, an APR is indicative of how much you will have to pay if you miss payments on your card. Average APRs in the U.S. change, admittedly not by extreme margins, and so a ‘good’ APR can vary and depends on when you’re looking for one. For those who are looking for a credit card and want to find one with a good APR, this post is for you. 

A Good APR

A good APR for a credit card can be thought of as any percentage that is less than the current national average. You should also remember that there are different kinds of credit cards. There are low-interest cards, student cards, airline cards, and more. Each can have a different average rate. Currently, however, the average national interest rate for credit cards is about 14 percent, though pinning down the actual number can be tricky. This means that if you are applying for a credit card, anything with less than 14 percent APR can be considered a ‘good’ credit card. 

When looking for a credit card, however, you also need to consider your situation. A good credit card might mean something different to you than it would for somebody else. People with high credit or who are looking to build credit may not have access to cards with great interest rates. In fact, the lowest interest rates on credit cards are often reserved for those who already have great credit. If you find yourself searching through cards with an average or above average APR, do not panic. Remember, if you are smart and able to make payments on time, you will not have to make any APR payments! Consider which benefits best help your situation. 

In truth, interest rates on credit cards can be tricky and hard to navigate. However, if you plan for your payments, build good credit, keep track of your purchases, and pay attention to average APRs for the nation, you should be able to find a credit card with a rate that works well for you. While a good rate is anything of around 14 percent or less, it bears repeating that you can hopefully avoid interest payments on your credit card altogether. At the end of the day, a good APR depends on you and your own history.