What Is a Good APR for a Credit Card?

The benchmark: Federal Reserve averages

The Federal Reserve’s G.19 consumer credit release reports two average card rates each quarter, based on commercial banks:

• All accounts: 20.94% as of Q2 2026. The average across every card account, including people who pay in full.
• Accounts assessed interest: 22.15% as of Q2 2026. Only accounts that were actually charged interest. This is the better yardstick if you carry a balance.

A rate well under these figures is good by any measure. A rate near them is ordinary. A rate well above them is expensive, and worth trying to lower if you carry a balance.

Averages have risen a lot in the past decade. The CFPB reported that the average APR on accounts assessed interest went from 12.9% in late 2013 to 22.8% in 2023, the highest since the Fed started collecting the data in 1994.

What sets your APR

The prime rate plus a margin

The CFPB describes the APR on most card accounts as two parts: the prime rate, a benchmark most banks use, plus an APR margin the issuer chooses. On a variable-rate card, when the prime rate moves, your APR moves with it.

The prime rate isn’t set by your card company, and neither of you controls it. The margin is the part that depends on the issuer and on you. The CFPB found the average margin reached 14.3 percentage points in 2023, the highest in recent history. It also found that nearly half of the rise in average APRs over the prior 10 years came from issuers raising margins.

Your credit score

Issuers price risk into the margin. The CFPB notes that people with subprime scores, below 660, are typically offered higher rates because of the greater risk of default. A higher score doesn’t guarantee a low APR, though. The CFPB found the average margin for accounts with scores of 800 or above grew 1.6 percentage points from 2015 to 2022, without a matching rise in late payments.

The issuer you pick

Where you get the card matters as much as your score. In a 2024 survey, the CFPB found the largest card issuers charged rates 8 to 10 percentage points higher than small banks and credit unions. For consumers with good credit, in the 620 to 719 score range, the median APR was 28.20% at large issuers and 18.15% at small ones.

What the difference costs

The APR gap shows up in dollars when you carry a balance. Take $5,000 paid down at a fixed $200 a month, with no new charges:

One month of interest on the same $5,000 is $75.00 at 18% and $116.67 at 28%. At the higher rate, more of each $200 payment goes to interest, so the balance falls slower and the interest builds on itself.

If you pay the full statement balance by the due date every month, none of this applies to purchases. A grace period means no purchase interest, and the APR matters only if that habit breaks.

Rates that aren’t what they seem

• 0% introductory APR. Good while it lasts. The CFPB notes an intro rate must last at least six months unless you fall more than 60 days behind. Afterward the remaining balance moves to the regular APR, so check that number too.
• Penalty APR. A higher rate triggered by late payment. It can apply to your existing balance only once a payment is more than 60 days late. The issuer must remove it after six on-time minimum payments in a row (§ 1026.55(b)(4)).
• Cash advance APR. Often higher than the purchase rate, usually with no grace period.
• Deferred interest. Some offers read “no interest if paid in full” within a set time. The CFPB explains that if any balance remains when that time ends, interest is charged back to the original purchase date. A true 0% intro APR doesn’t do that.

How to lower your credit card APR

• Ask your issuer. You can call and request a lower rate, especially with a record of on-time payments. There’s no guarantee, and the answer costs nothing.
• Look beyond the largest issuers. The CFPB’s survey found small banks and credit unions charged lower median rates across credit tiers.
• Use a balance transfer carefully. A promo rate can cut interest for a set time, but a transfer fee and the regular APR afterward still apply. The balance transfer calculator runs the comparison.
• Protect your score. Paying on time keeps you clear of penalty APRs, and a stronger score can qualify you for lower offers.
• Pay down the balance. The cheapest APR is the one charged on a small balance. How to pay off credit card debt covers the methods.

For how APR becomes a monthly charge, see what is APR and the credit card interest calculator.

FAQ

What is a good APR for a credit card?

Anything below the Federal Reserve’s average is good. As of Q2 2026, that average is 20.94% for all accounts and 22.15% for accounts charged interest. The rate you’re offered depends on your credit score, the issuer and the prime rate. If you pay in full each month, the APR rarely costs you anything.

Is 24% APR high for a credit card?

Compare it with the Federal Reserve’s average of 22.15% for accounts charged interest, as of Q2 2026. Above that is on the high side. On a $5,000 balance, 24% means about $100.00 of interest in a month. It costs nothing on purchases you pay in full by the due date.

What APR should I expect with a 700 credit score?

It depends heavily on the issuer. A 2024 CFPB survey found that for consumers with scores from 620 to 719, the median APR was 28.20% at the largest issuers and 18.15% at small banks and credit unions. Your own offer also depends on the prime rate and the card.

Is a 0% APR credit card a good deal?

It can be, for a balance you’ll pay off within the promotional period. The intro rate must last at least six months unless you’re over 60 days late. Watch for a balance transfer fee, the regular APR that applies afterward, and deferred interest terms on some store cards.

Does APR matter if I pay my balance in full?

Rarely. If your card has a grace period and you pay the full statement balance by the due date, purchases accrue no interest. The APR starts to matter if you carry a balance, take a cash advance, or lose the grace period by paying less than the full statement balance.