What is a Good Interest Rate on a Credit Card in 2023? (2024)
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If you have really good credit now, the average APR you can expect to be offered is 21.41%. If you have really crummy credit, the average APR offered is 28.28%. That's a big difference. The good news is that the average FICO Score of Americans in October 2023 was 717, according to FICO — down one point from April 2023.
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. If you don't have good credit, you're likely to receive a higher credit card APR.
Bankrate has been tracking credit card rates since 1985, and as 2023 draws to a close, they've never been higher. As of December 27, 2023, the average credit card rate was 20.74 percent. That figure has jumped 4.44 percentage points since the beginning of 2022 — the most we've ever seen in a two-year span.
Yes, an APR of 12% is a good credit card interest rate. However, you should still pay off your balance in full each month to avoid paying interest. If you are carrying a balance, consider a debt consolidation loan or a balance transfer offer.
A 24.99% APR is not good for mortgages, student loans, or auto loans, as it's far higher than what most borrowers should expect to pay and what most lenders will even offer. A 24.99% APR is reasonable for personal loans and credit cards, however, particularly for people with below-average credit.
A credit card APR below 10% is definitely good, but you may have to go to a local bank or credit union to find it. The Federal Reserve tracks credit card interest rates, and an APR below the average would also be considered good.
Your interest rate may have nothing to do with your credit score. Rewards credit cards typically charge a higher APR than cards without rewards. When you pay your entire statement balance by the due date, you won't be charged interest on purchases.
With this information in hand, try contacting your credit card issuer directly via the customer service number on the back of your card and asking for a lower interest rate.
If you tend to carry a balance on your credit card month after month, those high interest rates, also known as APR, can quickly bring you deeper into debt. Fortunately, you may be able to combat this by simply calling your credit card issuer and negotiating a lower rate.
The average overall APR across credit cards we track in our database is 27.62% this week, down from last week. Our overall average calculation includes airline, hotel, flexible rewards, cash back, 0% APR, balance transfer, student and business credit cards. Table of average credit card rates this week and last.
For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2023, the average FICO® Score☉ in the U.S. reached 715.
Card rates are high because they carry more risk to issuers than secured loans. With average credit card interest rates above 20.7 percent, the best thing consumers can do is strategically manage their debt. Do your research to make certain you're receiving a rate that's on the lower end of a card's APR range.
Capital One credit cards remain popular for good reason: Its offerings run the gamut from cash back to travel rewards to cards aimed at small businesses. A common thread among all Capital One cards is no foreign transaction fees, making a Capital One card a solid traveling companion abroad.
It costs $30 to $50 in fees to transfer a $1,000 balance to a credit card, in most cases, as balance transfer fees on credit cards usually equal 3% to 5% of the amount transferred.
The 3/12 Rule expands on the previously mentioned 2/3/4 Rule by stipulating that a cardmember will not be approved for any new personal or business credit card by BoA if they have opened three or more new credit cards in the past 12 months.
Over the last 10 years, average APR on credit cards assessed interest have almost doubled from 12.9 percent in late 2013 to 22.8 percent in 2023 — the highest level recorded since the Federal Reserve began collecting this data in 1994.
According to data from the Q4 2021 Experian State of the Automotive Finance Market report, the average interest rate for good credit auto loans is around 3.5% for new car purchases and 5.4% for used vehicle purchases.
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.
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