What is a good APR for a credit card?

A good credit-card APR is one below the national average, which the Federal Reserve has tracked in the low-20% range for accounts assessed interest. Strong-credit borrowers often see offers from the high-teens to low-20s, with the lowest rates reserved for excellent credit. Because card APRs are variable and tied to the prime rate, what counts as 'good' shifts with the rate environment.

Judge it against the national average

The Federal Reserve publishes the average APR on credit-card accounts assessed interest — recently in the low-20% range. An APR meaningfully below that is 'good'; one well above it is expensive. There's no single 'good' number because the baseline moves with rates.

What drives the APR you're offered

Your credit profile — higher scores earn the lower end of a card's APR range.
The prime rate — most card APRs are variable (prime + a margin), so they rise and fall with the Fed's benchmark.
Card type — rewards and travel cards often carry higher APRs than plain low-interest cards.

When the APR matters — and when it doesn't

If you pay your statement balance in full each month, you stay in the grace period and the APR is effectively irrelevant. The APR only costs you when you carry a balance — then a lower rate directly reduces interest. For balance-carriers, a low-interest card matters more than rewards.

The numbers

The Federal Reserve (G.19) tracks the average APR on card accounts assessed interest — recently in the low-20% range. — Federal Reserve
Most credit-card APRs are variable and tied to the prime rate, so they move with the Fed's benchmark. — CFPB
Paying the statement balance in full keeps you in the grace period, avoiding interest entirely. — CFPB

Key takeaways

'Good' = below the Federal Reserve's national average (recently low-20% range).
Card APRs are variable and tied to the prime rate, so the baseline shifts.
Your credit profile sets where you land in a card's APR range.
If you pay in full monthly, the APR barely matters; it bites when you carry a balance.