What is a good APR for a credit card?
Key points
- The Federal Reserve's latest data put the average credit card APR at 21.19% across all accounts and 22.36% on accounts that were actually charged interest (August 2026, preliminary). A "good" APR is one meaningfully below those numbers.
- Most card APRs are the prime rate (7.00% as of October 13, 2026) plus a margin the issuer sets. Your credit history largely drives the margin, and the CFPB found average margins ranged from 13.7% for superprime scores to 20.3% for subprime and deep subprime in 2024.
- APR matters most when you carry a balance. On $5,000 paid down at $200 a month, a 28% APR costs $1,645 more in interest than a 14% APR.
A good APR for a credit card is one below the national average, which the Federal Reserve most recently measured at 21.19% for all accounts and 22.36% for accounts that paid interest (August 2026, preliminary data). If your card is well under about 21%, you're doing better than average. If it's near 28% or higher, which is common on new and store cards, it's worth looking at ways to bring it down.
That said, "good" depends on how you use the card. Here's how to read the averages, how your own rate is set, and what the difference costs in dollars.
What is the average credit card APR right now?
The Federal Reserve publishes average card rates in its G.19 Consumer Credit release. The October 7, 2026 release shows two numbers for August 2026 (both preliminary, so they may be revised):
| Federal Reserve measure | Q1 2026 | Q2 2026 | August 2026 |
|---|---|---|---|
| All accounts | 21.00% | 20.94% | 21.19% |
| Accounts assessed interest | 21.52% | 22.15% | 22.36% |
The two lines measure different things:
- All accounts is the stated APR averaged across every credit card account at reporting banks, including people who pay in full.
- Accounts assessed interest is total finance charges divided by the average daily balances they were charged on, counting only accounts that actually paid interest.
If you carry a balance, the second number (22.36%) is the better yardstick, because it reflects what people in your situation actually pay. The gap between the two is 1.17 percentage points.
Other data points help too. The CFPB's credit card market report, published in December 2025, found the average APR on general purpose cards was 25.2% in 2024, and new general purpose accounts opened in 2024 averaged 27.5%, up from 19.8% ten years earlier. Private label (store) cards averaged 31.3%. So an offer for a brand-new card will often come in above the Fed's averages.
How your APR is set: prime rate plus a margin
Most credit cards have a variable APR. The CFPB describes it as two parts: an index, usually the prime rate, plus an APR margin the issuer adds on top.
your APR = prime rate + your marginThe prime rate is the same for everyone. The Federal Reserve's H.15 release showed a bank prime loan rate of 7.00% as of October 13, 2026. When it moves, variable card APRs usually move with it. The CFPB notes that a variable rate can go up when the index it's tied to goes up.
The margin is the part that's about you. Chase says your rate within a card's advertised range is determined by your credit history, with issuers looking at things like your credit score, payment history, credit utilization and current debt. The CFPB found that in 2024 the average margin was 16.4%, a record high, and that it rose across all credit tiers.
What APR to expect by credit score
The CFPB reports average margins by credit tier, using FICO-based score ranges. Adding those 2024 margins to today's 7.00% prime rate gives a rough picture of where variable APRs land. Treat this as an illustration, not a quote: each issuer prices its own cards.
| Credit tier (CFPB) | Average 2024 margin | + 7.00% prime |
|---|---|---|
| Superprime (800 or higher) | 13.7% | 20.7% |
| All large-bank accounts (average) | 16.4% | 23.4% |
| Subprime and deep subprime (619 or lower) | 20.3% | 27.3% |
Two things stand out. First, even people with excellent credit average around 20%, so an APR in the teens is a genuinely low rate today. Second, the spread between the best and worst tiers is about 6.6 percentage points, which adds up fast on a carried balance. One exception: the CFPB found that store card APRs did not vary much by credit score.
Worked example: what a "good" vs. "bad" APR costs
Say you owe $5,000 and pay $200 a month with no new charges. Here's the same debt at four APRs, using monthly interest (APR ÷ 12) the way our credit card payoff calculator does:
monthly interest = balance × APR ÷ 12
new balance = old balance + interest − $200| APR | First month's interest | Months to pay off | Total interest |
|---|---|---|---|
| 14.00% (hypothetical low rate) | $58.33 | 30 | $946.20 |
| 21.19% (Fed average, all accounts) | $88.29 | 34 | $1,655.04 |
| 22.36% (Fed average, accounts paying interest) | $93.17 | 34 | $1,792.96 |
| 28.00% (near the 27.5% average for new cards) | $116.67 | 38 | $2,591.32 |
At 28%, the same $5,000 takes eight months longer to clear and costs $1,645.12 more in interest than at 14%. Even moving from 28% to the 22.36% average saves $798.36. You can plug in your own balance, APR and payment with the credit card interest calculator to see a single month's cost, or the payoff calculator for the full timeline.
When APR barely matters
If you pay your full statement balance by the due date every month, your purchases normally cost no interest at all thanks to the grace period. In that case a 29% card and a 19% card cost you the same: $0. Our guide to the credit card grace period explains how that works and how carrying even a small balance switches it off.
APR matters most when you carry a balance, take a cash advance, or miss payments. Two rates to watch beyond your purchase APR:
- Penalty APR. According to the CFPB, your rate can go up if your minimum payment isn't received within 60 days after the due date.
- Promotional rates. When a temporary rate, such as a low balance transfer rate, ends, the regular APR applies to what's left.
How to get a lower credit card APR
- Ask your issuer. You can call and request a lower rate. Chase notes this may be approved or denied at the issuer's discretion, so it helps to have a record of on-time payments when you ask.
- Strengthen the factors behind your margin. Pay at least the minimum on time every month, keep utilization low (Chase suggests below 30%), and avoid applying for many cards at once.
- Move the balance. A 0% intro balance transfer can pause interest while you pay down the principal, usually for a transfer fee. See how balance transfers work and our list of balance transfer cards, and run the numbers in the balance transfer calculator.
- Know your rights after an increase. The CFPB says that after the first year, issuers must give 45 days' notice before raising your rate, and if they raise it they generally must re-evaluate it at least every six months. If a penalty rate was triggered by a payment more than 60 days late, the issuer must restore your old rate after six consecutive on-time minimum payments.
Not sure what your current APR is? It's printed on your monthly statement and in your card agreement. For the daily math behind it, read how credit card APR works.
Sources
- Federal Reserve: G.19 Consumer Credit, October 7, 2026
- Federal Reserve: H.15 Selected Interest Rates (bank prime loan rate)
- CFPB: The Consumer Credit Card Market report (December 2025)
- CFPB: Credit card interest rate margins at all-time high
- CFPB: When can my credit card company increase my interest rate?
- Chase: Credit card APR ranges, explained
Frequently asked questions
Is 25% a good APR for a credit card?
It's above the Federal Reserve's latest averages of 21.19% for all accounts and 22.36% for accounts charged interest (August 2026, preliminary). It's close to the 25.2% average the CFPB reported for general purpose cards in 2024, so it's common but not low.
What is a good APR for someone with excellent credit?
The CFPB found the average 2024 margin for superprime borrowers (scores of 800 or higher) was 13.7%. Added to the 7.00% prime rate as of October 2026, that's about 20.7%, so anything below that is a strong rate for a standard card.
Why is my APR higher than the average?
Your APR is usually the prime rate plus a margin based on your credit history. New cards and store cards also tend to carry higher rates: the CFPB reported 27.5% for new general purpose accounts and 31.3% for private label cards in 2024.
Does APR matter if I pay my balance in full?
Usually not. If you pay the full statement balance by the due date, the grace period means purchases don't accrue interest, so the APR doesn't affect what you pay.
