What is a good APR?

Asked by: Marty Monahan  |  Last update: April 2, 2026
Score: 4.9/5 (7 votes)

For someone with a good or very good credit score, an APR of 20% could be good, while a 12% APR may be good for someone with an excellent score. If your score is lower, an APR of 25% could be considered good.

Is 24% a good APR?

Yes, a 24% APR (Annual Percentage Rate) on purchases is considered high for a credit card. As of my last knowledge update in August 2023, average credit card interest rates typically ranged from about 15% to 20%, depending on the individual's creditworthiness and the specific card.

Is a 29.99 APR good?

Yes, a 29.99% APR is high for a credit card, as it is above the average APR for new credit card offers. Credit card APRs can be much lower, and some cards offer an introductory 0% APR for a certain number of months, which can save you a lot of money.

Is 3% a good APR?

Generally, a good APR for a car loan might look something like this: Excellent Credit (750+): 3% or lower for new cars, 4% or lower for used cars. Good Credit (700-749): 4-5% for new cars, 5-6% for used cars. Fair Credit (650-699): 6-7% for new cars, 7-8% for used cars.

Is 20% APR too much?

A 20% APR is reasonable but not ideal for credit cards. The average APR on a credit card is 22.77%. A 20% APR is decent for personal loans. It's far from the lowest rate you can get, though.

What is a good APR on a credit card?

39 related questions found

Is 28% APR too high?

Currently, the average APR is around 25%, so an APR that exceeds that is considered high.

Why is my APR so high with good credit?

Even people with good credit scores make mistakes, and a bank may charge a penalty APR on your credit card without placing a negative mark on your credit report. Penalty APRs typically increase credit card interest rates significantly due to a late, returned or missed payment.

How much is 26.99 APR on $3000?

How much is 26.99 APR on $3,000? An APR of 26.99% on a $3,000 balance would cost $67.26 in monthly interest charges.

Do I pay APR if I pay on time?

An APR is the interest rate you are charged for borrowing money. In the case of credit cards, you don't get charged interest if you pay off your balance on time and in full each billing cycle. Card issuers express this rate annually, but to find your monthly interest rate, simply divide by 12.

What is an acceptable APR rate?

According to the Service Quality Measurement (SQM) Group , the industry standard for a good FCR rate falls between 70 and 79 percent, which means about 30 percent of tickets take more than one interaction to resolve.

How much will it cost in fees to transfer a $1000 balance to this card?

Balance transfer fee. This fee will typically be 3% to 5% of the amount transferred, which translates to $30 to $50 per $1,000 transferred. The lower the fee, the better, but even with a fee on the high end, your interest savings might easily make up for the cost.

Can your APR go down?

Key takeaways

Annual percentage rate (APR) refers to the yearly interest rate you'll pay if you carry a balance on your credit card. Some credit cards have variable APRs, meaning your rate can go up or down over time.

What is a good credit score?

There are some differences around how the various data elements on a credit report factor into the score calculations. Although credit scoring models vary, generally, credit scores from 660 to 724 are considered good; 725 to 759 are considered very good; and 760 and up are considered excellent.

What is APR for dummies?

APR represents the price you pay for a loan. It typically includes interest rates and any fees, too. APR can sometimes be the same as a loan's interest rate, like in the case of most credit cards. APR may be fixed or variable, meaning the rate may stay the same or it might change with market factors.

Is APR charged monthly?

Your credit card's APR is the interest rate you are charged on any unpaid credit card balances you have every month. Your monthly statement may break down your credit card APR yearly, but you can break it down to a monthly APR yourself.

Does Affirm offer 0 APR?

Affirms offers up to 36-month payment programs at a rate of 0% APR or between 10-36% APR based on customers' credit. With no fees or compounding interest, what you see is what you pay.

How high is too high for an APR?

Key takeaways

A good credit card APR is a rate that's at or below the national average, which currently sits above 20 percent. While there are credit cards with APRs below 10 percent, they are most often found at credit unions or small local banks.

Will Chase lower my APR?

Chase reviews qualified accounts every 6 months and automatically lowers the APR if eligible. Chase will send a letter to notify you of any changes. Requests for a lower APR are not supported outside of this review process.

What credit score do you need for a good APR?

Key takeaways

To get a 0 percent intro APR card, you typically need a FICO credit score of at least 670 or a VantageScore credit score of at least 661, putting you in the “good” and “prime” ranges, respectively. Having a FICO score of at least 740 or a VantageScore of at least 781 increases your chances of approval.

How much is a $20,000 car payment per month?

Payments would be around $377 per month. According to the results, it will take you 60 months, an interest rate of 5% of $2,645, to fully pay your $20,000 car loan. However, the monthly cost of a $20,000 car loan will depend on your repayment period and the annual percentage rate (APR).

Why is a major downside of a 72-month loan?

Because of the high interest rates and risk of going upside down, most experts agree that a 72-month loan isn't an ideal choice. Experts recommend that borrowers take out a shorter loan. And for an optimal interest rate, a loan term fewer than 60 months is a better way to go.

Is it good to pay off a car loan early?

Reduces risk of negative equity

As vehicles tend to depreciate over time, your loan balance could potentially become higher than your car's value. This is known as having negative equity or being underwater on your loan. Paying your loan off earlier could reduce the risk of negative equity.