A good credit card interest rate depends on your credit score, but right now most cards charge between 18% and 24% for people with fair to good credit
The interest rate on a credit card — called the Annual Percentage Rate or APR — is what the card issuer charges you when you carry a balance from one month to the next. If you have good credit (usually a score of 670 or higher), you might see offers in the 15% to 21% range. If your credit is fair or rebuilding, expect 22% to 29%. If your credit is excellent (750+), you may find cards under 15%.
The catch: these rates change. The Federal Reserve sets a benchmark rate that banks use to price credit cards, and that benchmark has moved several times in recent years. A rate that was competitive two years ago might be average today. What matters more than chasing the lowest number is understanding what rate you can actually get based on your credit profile, and whether a 0% introductory offer makes sense for your situation.
Key Takeaways
- Credit card APRs typically range from 15% to 29%, with your credit score determining where you land within that range.
- A 0% introductory APR for 6 to 21 months can save you hundreds in interest if you pay down the balance before the regular rate kicks in.
- The interest rate you see advertised is not the rate you will get — card issuers pull your credit report and offer different rates to different people.
- Paying your full statement balance by the due date means the APR does not matter, because no interest charges accrue.
- Comparing cards by APR alone misses other costs like annual fees, late fees, and cash advance fees that can cost more than interest.
How credit scores determine the rate you are offered
Credit card companies use your credit score to decide what rate to offer you. A higher score signals that you have paid past debts on time, so the lender sees less risk and charges a lower rate. A lower score means higher risk, so the rate goes up.
The score ranges vary by lender, but here is a rough map: scores of 750 and above typically see rates under 16%; scores from 670 to 749 typically see 16% to 22%; scores from 580 to 669 typically see 22% to 28%; scores below 580 typically see 28% and above. These are not hard rules — different card issuers have different thresholds, and the same issuer may offer different rates to different applicants even with similar scores.
When you explore for a card, the issuer pulls your credit report and assigns you a specific rate based on what they see. The advertised rate range (like "15.99% to 25.99%") is a legal requirement, but it does not tell you which end of that range you will get. The only way to know is to explore or call the issuer's pre-qualification line, which shows you a personalized rate without a hard inquiry that would ding your score.
Introductory 0% APR offers and when they actually save money
Many cards offer 0% APR for a set period — commonly 6, 12, 18, or 21 months — if you transfer a balance or make purchases during that window. This is genuinely useful if you have a specific debt you plan to pay down in that time frame.
The math is straightforward: if you transfer a $5,000 balance to a 0% card for 12 months and pay it off in that time, you save the interest you would have paid on the old card. If the old card charged 22% APR, you would have paid roughly $1,100 in interest over a year. The 0% card saves you that amount, minus any balance transfer fee (typically 3% to 5% of the amount transferred).
The trap: the 0% period ends. When it does, the regular APR kicks in on any remaining balance. If you still owe $2,000 when the promotional period ends and the regular rate is 21%, you start paying interest on that $2,000 when ready. Many people underestimate how much they need to pay down each month to clear the balance before the clock runs out. Divide your balance by the number of months you have, add 10%, and that is roughly what you need to pay each month to be safe.
Why APR alone does not tell you the full cost
Two cards might have the same APR but very different total costs. A card with a $95 annual fee and a $39 late fee can cost you more than a card with a 2% higher APR if you pay on time and do not carry a balance.
Look at the full fee schedule: annual fee, late payment fee, over-limit fee, cash advance fee, and foreign transaction fee if you travel. Some cards charge 3% to 5% just to move money from the card to your bank account. A card with a 20% APR and no annual fee is often better than a card with 18% APR and a $150 annual fee, especially if you do not carry a balance (because you pay no interest either way).
The real cost of a credit card is APR plus fees, divided by what you actually use the card for. If you pay the full balance every month, the APR is irrelevant and the annual fee is the only cost that matters. If you carry a balance, both the APR and the annual fee matter. If you use the card for cash advances, the cash advance APR (often 5% to 10% higher than the purchase APR) and the cash advance fee matter most.
How to actually use your APR to save money
The simplest way to make APR irrelevant is to pay your full statement balance by the due date every month. The statement balance is the total of all charges from the previous billing cycle, not the current balance. If you do this, no interest accrues, and the APR does not affect you at all. This is why people with excellent credit who pay in full every month do not care much about APR — they never pay it.
If you do carry a balance, the APR determines how much interest you owe each month. The formula is straightforward: (balance × APR) ÷ 365 × number of days in the billing cycle. A $3,000 balance at 22% APR costs roughly $18 per month in interest. A $3,000 balance at 15% APR costs roughly $12 per month. Over a year of carrying that balance, the difference is $72. That is real money, but it is also less than many annual fees.
The fastest way to lower what you owe is to pay more than the minimum. The minimum payment is usually 1% to 3% of your balance and covers mostly interest, not principal. If you pay $100 per month instead of the minimum on a $3,000 balance at 22% APR, you clear the debt in about 32 months and pay roughly $1,200 in interest. If you pay $150 per month, you clear it in about 21 months and pay roughly $700 in interest. The higher payment saves you $500, which is far more than the difference between a 22% and 15% rate would save.
Comparing rates across different card types
Different types of cards have different rate ranges. Cash back cards and travel rewards cards typically charge 16% to 25% APR because they cost the issuer more to run (they pay rewards to cardholders). Secured cards, which require a cash deposit, often charge 18% to 24% because they are designed for people rebuilding credit. Balance transfer cards and 0% promotional cards are priced competitively to attract people with existing debt.
A secured card with a $500 deposit and a 22% APR is not a bad deal if your credit score is below 600 and you cannot get approved for anything else. The deposit is yours to keep; it just sits in an account as collateral. After 6 to 18 months of on-time payments, many issuers convert the card to a regular unsecured card and return your deposit. The 22% rate is high, but it is the price of rebuilding, and it drops once you graduate to a regular card.
Store cards (like Target or Kohl's) often charge 20% to 29% APR and are rarely worth it unless you shop there constantly and the store offers a one-time discount on your first purchase. The high rate and limited use make them expensive compared to a general-purpose card.
What to do if your current rate is too high
If you have a card with a 28% APR and your credit has improved since you opened it, you have a few options. The first is to call the card issuer and ask for a rate reduction. Many issuers will lower your rate by 2% to 4% if you have been a customer for at least six months and have paid on time. This takes five minutes and costs nothing.
The second option is to transfer the balance to a new card with a lower rate or a 0% promotional period. This makes sense if the new card has no annual fee and you can pay down the balance during the 0% window. The balance transfer fee (usually 3% to 5%) is worth it if you are moving from 28% to 0% for 12 months.
The third option is to stop using the card and pay it down as fast as you can with money from other sources. Every dollar you pay toward principal instead of interest gets you out of debt faster. Once the balance is zero, you can close the card or keep it open with a zero balance (which helps your credit score by lowering your credit utilization ratio).
Frequently Asked Questions
Is 18% APR good for a credit card?
It depends on your credit score. If your score is 750 or higher, 18% is on the high end and you should look for cards under 16%. If your score is 650 to 750, 18% is competitive. If your score is below 650, 18% is actually quite good and you should take it.
Do I have to pay interest if I pay my balance in full each month?
No. If you pay your full statement balance by the due date, no interest charges accrue, regardless of the APR. The APR only applies to balances you carry past the due date.
Can I negotiate my credit card APR?
Yes. Call your card issuer and ask for a rate reduction, especially if you have been a customer for six months or longer and have paid on time. Many issuers will lower your rate by 2% to 4% without you having to switch cards. It costs nothing to ask.
What is the difference between APR and interest rate?
On a credit card, APR and interest rate mean the same thing — the yearly percentage cost of borrowing. APR is the official term used in disclosures, but card issuers often call it the interest rate in marketing materials.
Should I choose a card based on APR or rewards?
If you pay your full balance every month, choose based on rewards and fees, because you will never pay the APR. If you carry a balance, choose based on APR and fees first, because the cost of interest will outweigh any rewards you earn.