What is considered a good annual percentage rate (APR) for a credit card?

A good annual percentage rate (APR) for a credit card typically falls in the range of about 15%. This rate reflects a balance between being competitive and reasonable when compared to the general market.

When assessing APR, it's important to understand that credit card rates can vary widely based on factors such as creditworthiness, the overall economic environment, and the specific terms set by financial institutions. An APR of around 15% is often seen as a standard rate for individuals with good credit history, making it manageable for most borrowers while still allowing lenders to maintain profitability.

In contrast, lower APR options, like around 5% or 10%, are likely offered on specific promotional credit cards or secured cards, and they may not represent the typical rates available to the average consumer, especially those who may not have perfect credit. Rates around 20% are generally considered high and indicate that the credit card is associated with higher risk, often due to lower credit ratings or other financial factors. Thus, a 15% APR strikes a balance between being accessible and reasonable in terms of credit card offerings.