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News: What Is a Good APR for a Credit Card - Credit-Land.com

A credit card's annual percentage rate (APR) determines the amount of interest the card issuer can charge on the balance you carry on your credit card. In other words, it's the cost of taking out credit.

The easiest way to determine whether a credit card has a good APR is to compare it with the average credit card APR. Currently, it's above 20%. Thus, if the card's APR is below the national average rate, that's a good APR.

Even if a credit card has APRs at national average, that's a good option, especially if you are looking at best credit cards that have rewards, welcome bonus offers and perks.

Since most credit cards come with variable interest rates, the national average APR change from time to time. Recently, the revolving cost of credit has only been increasing as credit card issuers are still responding to the Federal Reserve's rate hikes with APR increases on their credit products.

It's easy to say that you should look for credit cards that offer APRs at or below the national average when your actual annual interest rate depends on your credit score and creditworthiness. With bad credit scores, you are likely to be offered higher interest rates than if you'd had good or excellent credit. In other words, a good credit card APR for someone with bad credit is different from a good interest rate for someone with excellent credit.

If you want to get the best credit card APR possible, you can improve your credit score and creditworthiness. If you already have excellent credit, you can get a 0% intro APR credit card. Just keep in mind that the promotional rate won't last forever and when it ends, a go-to variable interest rate will apply to all unpaid and new balances.

If you do not qualify for a good credit card APR, you can always pay the card balance off in full each month. If you do not carry any balance, no interest will be charged. Credit cards have a grace period that lasts between the end of a billing cycle and the date your payment is due. During this time, you may not be charged interest as long as you pay your balance in full by the due date. The minimum length of the grace period is 21 days after a statement closing date.

tags : Credit Cards Fees Interest Rates

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.