What Is A Good APR On A Credit Card In 2023?

As we have entered 2023, a good apr on a credit card is a must for everyone. As when it comes to credit cards, the APR (Annual Percentage Rate) is a very important factor to …

What is a good apr for a credit card

As we have entered 2023, a good apr on a credit card is a must for everyone. As when it comes to credit cards, the APR (Annual Percentage Rate) is a very important factor to consider. If you will have a good apr then it can save you a lot of money on interest charges, while a high apr can also cost you more in the long run. But what exactly is a good apr for a credit card and how can you find the best one for your financial situation? Read on to find out.

In this article, I will break down what APR means, how it is calculated, which credit cards have high APRs, which credit cards have low APRs, how to evaluate whether a credit card’s apr is a good or bad one, and how you can qualify for best apr for a credit card. Stay tuned!

A Good APR On A Credit Card

What Is APR And How Is It Calculated?

APR stands for Annual Percentage Rate, it is the interest rate charged on credit card balances over the course of a year or on any outstanding balance on your credit card. One interesting thing to note, it includes not only the interest rate but also any fees associated with the card.

Credit Card APRs can be either fixed or variable. A fixed APR remains as it is or the same over time, while a variable APR can fluctuate based on factors such as changes in the prime rate.

Now comes to mind, how it is calculated. Well, credit card issuers use a complex formula to calculate APR on a credit card, taking into account several factors, including:

  • The card’s interest rate.
  • The frequency of interest accrual (e.g. daily or monthly).
  • Any fees associated with the card, such as the annual fee or any balance transfer fee.
  • Your credit score and your credit history.

Understanding the APR (annual percentage rate) of a credit card can be a daunting task for many people. It’s a complex calculation that can vary depending on the terms and conditions of each individual card. That’s why it’s so important to take the time to carefully review the terms and conditions of a credit card before applying.

Fortunately, credit card issuers are required to disclose the APR and how it is calculated in the card’s terms and conditions. This fact may be located within the satisfactory print of the card’s agreement, so it’s critical to read thru the whole lot cautiously to ensure you recognize the phrases and conditions.

What is a good APR On A Credit Card?

a very good apr on a credit card can vary relying on a spread of factors, such as your credit score score, the form of card you are making use of, and the modern marketplace conditions.

Generally, a good credit card APR is one that is lower than the average credit card APR. According to Chuck Czajka, a registered financial consultant and founder of Macro Money Concepts in Stuart, Florida, many credit cards will try to lure you in with a low- or no-interest introductory offer. While this may seem like a great deal at first, it’s important to remember that these offers typically don’t last forever.

In other words, that 0% APR you’re enjoying, in the beginning, will eventually come to an end. At that point, the card’s regular APR will kick in, which could be significantly higher than the introductory rate.

That is why it’s so crucial to study high-quality print whilst applying for a credit card. Make sure you understand how long the introductory rate will last, and what the regular APR will be once the offer ends.

If you are trying to find out what makes a good apr on a credit card, one of the helpful places is to start by observing industry averages. According to the Fed, the average interest rate across all credit card accounts was 20.09% as of February 2023.

That means that anything lower than 20.09% could be considered a good APR. Of course, this isn’t the only factor to consider when choosing a credit card. You should also take into account any fees, rewards programs, and credit limits that come with the card.

Credit Cards With High APRs

Werner explains that people who have good credit scores and credit histories typically have access to credit cards with lower APRs. But those with lower credit scores might have limited options and may only qualify for credit cards with higher APRs, like secured credit cards or retail store credit cards.

Even if you have good credit and qualify for rewards credit cards, you could still face high APRs. If you carry a balance on such cards, the interest charges can eat away at the rewards you earn.

A Good ARP On A Credit Card

Credit Cards With Low APRs

To qualify for a credit card with a low APR, you generally need to have a good credit score of 670 or higher, which shows lenders that you’re a responsible borrower. When you have a good credit score, it’s easier to get approved for credit cards with more attractive deals, such as 0% introductory APR cards for a certain period or low-interest-rate credit cards.

Credit card companies tend to reserve these advantageous deals for customers with good credit histories and scores. However, low-interest credit cards usually have fewer rewards compared to rewards credit cards. But if you tend to carry a balance on your credit card from month to month, then a low-interest card with a lower APR could save you money on interest charges.

On the other hand, if you pay your balance in full each month, then you may be better off looking for a rewards credit card since you won’t need to worry about APR charges. Just remember that even if you have a rewards credit card, carrying a balance can quickly eat into the value of your rewards due to interest charges.

Average Credit Card Interest Rates By Credit Score

The Consumer Financial Protection Bureau (CFPB) recently published a report called  The Consumer Credit Card Market, which found that people are currently carrying fewer credit cards than they were before the pandemic. This could be due to various factors, including changes in spending habits and financial uncertainty. However, for individuals with lower credit scores, credit cards may still come with high APRs, which can make it harder to pay off balances.

Here’s a breakdown of the average interest rates for credit cards based on credit scores.

  1. Deep Subprime (Credit Score of 579 or below)- Average APR is 21%.
  2. Subprime (Credit Score of 580 to 619)- Average APR is 20.5%.
  3. Near Prime (Credit score of 620 to 659)- Average APR is 19%.
  4. Prime (Credit score of 660 to 719)- Average APR is 16.5%.
  5. Super Prime (Credit score of 720+)- Average APR is 13.5%.

A Good ARP On A Credit Card

How To Find The Best APR On A Credit Card?

If you are searching for a credit card with a good apr, it is important to consider your own financial situation and your spending habits. Here I am sharing some great tips for finding the best card for you:

  1. Check Your Credit Score: Do you know that your credit score plays a larger role in determining the APR you are offered? As if you have a good credit score, then you become eligible for lower rates, but if your score is less then you will not be eligible for lower rates. If your credit score needs work, then consider working on it by taking essential steps before applying for any card.
  2. Look for low-interest cards: One of the most crucial matters to word is that some credit cards are designed specifically designed for low-interest quotes. One important downside with these cards is, that they’ll now not offer any rewards or perks but they can be an awesome option to hold your fees down.
  3. Consider Balance Transfer Cards: if you’re feeling weighed down by credit card debt with excessive-hobby prices, a balance transfer card can be a smart solution for consolidating your debt and reducing your hobby fee. However, it’s important to proceed with caution and read the terms and conditions carefully before making any moves.
  4. Compare Offers: When you’re on the hunt for a new credit card, it can be tempting to jump on the first offer that comes your way. I was also tempted! But before you apply, it’s important to take a step back and do your research. Begin by comparing offers from a couple of credit card issuers. Look for cards with low introductory APRs or different promotional gives that could assist you to store money. However, be aware that these promotional gives may additionally only last for a constrained time, so make sure to study the first-class print and recognize whilst the everyday apr will kick in.
  5. Read The Print:It’s crucial to carefully examine the best print. This means going thru the phrases and conditions, charges, and other important details. You must apprehend how the apr is calculated and be in search of any prices that would force up the fee of the use of the card. By doing your due diligence, you can avoid unpleasant surprises down the line and make an informed decision about which credit card is best for you.


In conclusion, when shopping for a credit card, it’s important to consider the Annual Percentage Rate (APR), which is the interest rate charged on any outstanding balance on your credit card. A good credit card APR can vary depending on several factors, including your credit score, the type of card you’re applying for, and the current market conditions. Generally, a good APR is one that is lower than the average credit card APR, which is currently around 16%. To find a card with a good APR, consider your own financial situation and spending habits, check your credit score, look for low-interest cards or balance transfer cards, compare offers, and read the fine print before applying for any credit card.

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