A good APR depends on your credit score, but anything under 20% is better than average right now
Credit card APRs range from around 16% to 36%, depending on the card issuer and your creditworthiness. If you have excellent credit (typically a score of 740 or higher), you might see offers in the 16–21% range. If your credit is fair or poor, you are more likely to see 25–36%. The median APR across all credit cards sits somewhere in the low-to-mid 20s, so anything below that is working in your favor.
The catch is that your APR only matters if you carry a balance month to month. If you pay your full statement balance before the due date, you pay zero interest regardless of the APR. Most people with good financial habits never see their APR kick in at all. But if you do carry a balance—whether by choice or necessity—a lower APR saves you real money.
Your own APR is set when you open the card and is based on the creditworthiness the issuer sees at that moment. It is not fixed forever. Issuers can raise your APR if you miss a payment or if the prime rate (set by the Federal Reserve) rises, though they must give you notice first. You can also request a lower APR by calling the card issuer directly, especially if your credit score has improved since you opened the account.
Key Takeaways
- APRs under 20% are better than the current average, but the best APR is the one you never use by paying your balance in full each month.
- Your APR is determined by your credit score at the time you open the card, and issuers can raise it if you miss a payment or if the prime rate increases.
- Comparing APRs matters most if you expect to carry a balance, because interest charges add up quickly on even moderate balances.
- You can call your card issuer and ask for a lower APR if your credit has improved or if you have been a good customer, and they may say yes.
How your credit score affects the APR you are offered
Card issuers use your credit score as the main signal of how risky you are as a borrower. A higher score means you have a history of paying bills on time and managing debt responsibly, so the issuer charges you less interest. A lower score signals past missed payments or high debt levels, so the issuer charges more to offset the risk.
The relationship is not linear. The difference between a 650 score and a 700 score might be 5 percentage points in APR. The difference between a 750 and an 800 might be only 2 points. Most of the benefit comes from moving out of the poor and fair ranges into the good range (typically 670 and above). Once you are in the very good or excellent range, additional points help, but the gains flatten out.
If your score is lower than you would like, you do not have to accept the first APR offered. You can shop around—most issuers let you check your rate without a hard inquiry that would ding your score. Comparing three or four cards in a short window (usually two weeks) counts as a single inquiry, so you can look without penalty.
When a 0% introductory APR makes sense
Many cards offer 0% APR for a set period—typically 6 to 21 months—on new purchases, balance transfers, or both. During that window, you pay no interest even if you carry a balance. Once the intro period ends, the regular APR kicks in.
A 0% intro offer is most useful if you have a specific, time-bound expense or debt you want to move. For example, if you are transferring a $5,000 balance from a 24% card to a 0% card for 12 months, you save roughly $1,200 in interest if you pay the balance off within that year. But if you do not pay it off by month 13, the regular APR applies to whatever remains, and the interest accrues quickly.
Be aware that balance transfer offers usually come with a fee—typically 3% to 5% of the amount transferred. So on that $5,000 transfer, you might pay $150 to $250 upfront. The math still works if the interest you save exceeds the fee, but you need to do the calculation yourself. Also, most cards charge the regular APR on new purchases when ready, even during the 0% intro period, so do not assume the whole card is interest-free.
Comparing APRs across different card types
Different card categories tend to come with different APR ranges. Rewards cards and travel cards, which target people with good credit, often start around 16–22%. Secured cards, which are designed for people building or rebuilding credit, often start around 20–30%. Business cards vary widely depending on the issuer and your business credit profile.
The APR is only one part of the card's cost. A card with a 1% higher APR but no annual fee might be cheaper overall than a premium card with a lower APR and a $95 annual fee—especially if you do not carry a balance. A card with a higher APR but strong cash-back rewards might earn back more than the extra interest costs you. Compare the full picture: APR, annual fee, rewards, and your own spending habits.
If you are choosing between two cards with similar APRs, look at other terms. Some cards offer a grace period (the time between your statement closing and the due date) of 25 days; others offer 21. Some charge a late fee of $25 for the first missed payment; others charge $35 or more. These smaller terms add up if you are carrying a balance or paying close to the due date.
How to request a lower APR on a card you already have
If you have had a card for six months or longer and your credit score has improved, or if you have been a reliable customer, you can call the issuer and ask for a lower APR. There is no harm in asking—the worst they can say is no, and they often say yes, especially if you have never missed a payment.
When you call, be direct. Say something like: "I have been a customer for [time period], I have never missed a payment, and my credit score has improved. I would like to request a lower APR." Have your account number ready and be prepared to provide your current credit score if they ask. Some issuers will lower your rate on the spot; others will review your account and call you back within a few days.
If the issuer says no, ask if there are any promotional rates available or if you can request a review in a few months. If you have genuinely improved your credit, you may also be targeted for a new card offer with a better APR, which you can then use to transfer your balance.
What happens to your APR if you miss a payment
If you miss a payment by 30 days or more, the issuer can raise your APR as a penalty. This is called a penalty APR, and it is usually higher than your regular APR—sometimes significantly. A penalty APR can be 29% or higher, even if your regular APR was 18%.
The good news is that penalty APRs are not permanent. Most issuers will lower your rate back to the regular APR after six months of on-time payments. Some will do it sooner if you call and ask, especially if the missed payment was your first one. The key is to get back on track when ready and stay there.
Missing a payment also damages your credit score, which affects the APRs you are offered on new cards and other credit products. The impact is largest in the first few months after the missed payment and fades over time, but it stays on your credit report for seven years. This is why catching a missed payment early—even if you are a few days late—is worth the effort.
The difference between APR and interest charges you actually pay
APR is an annual rate, but interest is charged monthly based on your daily balance. If you carry a $1,000 balance on a card with a 20% APR, you do not pay $200 in interest that month. Instead, the issuer divides the APR by 12 (or sometimes by 365 and multiplies by the days in the billing cycle) to get a monthly rate, then applies it to your balance.
On a $1,000 balance at 20% APR, the monthly interest is roughly $16.67. If you pay down the balance to $500 the next month, the interest drops to roughly $8.34. This is why paying down a balance as fast as you can saves so much money—every dollar you pay reduces the balance that interest is charged on.
Some cards use a method called average daily balance, which calculates interest based on what you owed each day of the billing cycle, not just the balance at the end. This method can result in higher interest charges if you carry a balance throughout the month. You can find which method your card uses in the terms and conditions or by calling the issuer.
Frequently Asked Questions
Is 18% APR good for a credit card?
Yes, 18% is better than average. Most cards fall in the 20–25% range, so 18% puts you in the upper half. Whether it is good for you depends on your credit score—if you have excellent credit, you might find offers in the 16–17% range. If you have fair credit, 18% is quite good.
Can I get a credit card with no APR?
No card has zero APR permanently, but many offer 0% APR for an introductory period on new purchases or balance transfers. Once the intro period ends, the regular APR applies. Some cards also offer 0% APR on specific types of transactions, like balance transfers, but charge interest on purchases.
What is the average credit card APR right now?
The average sits in the low-to-mid 20s, though this varies by issuer and changes as the Federal Reserve adjusts interest rates. Your personal APR depends on your credit score and the card you choose, not the average.
Does paying off my balance early lower my APR?
No, paying early does not change your APR. But it does save you interest because you owe less for fewer days. If you pay your full balance before the due date, you owe zero interest regardless of the APR.
Can I switch to a different card if my APR is too high?
Yes. You can open a new card with a lower APR and transfer your balance to it, though most balance transfers come with a 3–5% fee. You can also request a lower APR from your current issuer, or straightforward pay down the balance as fast as you can on the card you have.