A credit card's Annual Percentage Rate (APR) is the interest rate charged on balances. What constitutes a "good APR" varies based on multiple factors, including your credit score and the type of card.

Good APR Benchmarks:

• Below 10% is excellent (typically found at credit unions)
• Below the Federal Reserve average (22.75% as of November 2023) is considered good
• 0% promotional APR offers are the best possible rates (temporary)

Key Factors Affecting Credit Card APRs:

• Personal creditworthiness
• Prime rate (benchmark rate banks use)
• Type of transaction (purchases, balance transfers, cash advances)
• Card type (rewards cards typically have higher APRs)

Low APR Credit Cards:

• Usually require good credit scores (690+)
• Often have fewer rewards and perks
• Ideal for carrying balances or financing large purchases
• Commonly found at credit unions
• May include 0% introductory periods

High APR Credit Cards:

• Common with rewards cards and store credit cards
• Often include valuable benefits and perks
• Store cards can have APRs above 30%
• Not recommended for carrying balances

How to Qualify for Better APRs:

1. Monitor your credit score regularly
2. Make all payments on time
3. Keep credit utilization below 30%
4. Limit new credit applications
5. Maintain older credit accounts
6. Check credit reports annually at annualcreditreport.com

Remember: If you pay your balance in full each month, the APR becomes irrelevant as you won't incur interest charges.

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