What is a good APR for a credit card?
Editor's Note
If you're relatively new to the world of credit cards — or even if you're not — you probably have a few questions about an important concept: annual percentage rate — and especially, what is a good APR?
In the simplest terms, APR represents the annual cost you pay to borrow money from a lender or credit card issuer. It's the interest rate you pay on a credit card — but only if you don't pay your card balance by the end of the government-mandated "grace period" (at least 21 days, by law).
So, what's a good credit card APR? And how can you avoid paying it or find credit cards with a low or even 0% APR?
What is a good credit card APR?
As of February 2025, the average credit card interest rate is over 24%. This average is based on 200 of the most popular credit cards in the U.S., as tracked by Lending Tree.
So, in relative terms, any APR that's lower than the average might be considered a "good" credit card APR.
If you're looking for a credit card with a low APR option, check out TPG's top picks for 0% APR and low-interest credit cards.
These cards offer a 0% introductory APR to new cardholders on purchases for a limited time; this makes them ideal if you have a large, upcoming purchase to make.
Lowering your APR on a card
Generally speaking, low-APR credit cards usually require you to have a good credit score — around 690 or higher — to qualify. These cards with a good APR also offer fewer perks and benefits than high-APR premium cards.
Assuming you have a reasonably good credit score, it all boils down to what you want from a credit card — a low APR and minimal rewards or a higher APR and lavish perks.
If you're looking to create or rebuild your credit history, you'll want to start with a secured credit card to build trust with credit issuers.
Some cards have what's called a variable APR. This is an APR that goes up or down based on your credit score and payment history. The easiest way to lower your APR is to pay off your balance in full each month.
Also, lower your credit utilization (meaning don't use more than 30% of your available credit) and avoid applying for several credit cards at once. All these actions will increase your credit score.
Bottom line
In an ideal world — if you're following TPG's 10 commandments of credit card rewards — you won't pay interest on any of your cards, so APR is a non-starter. However, if you follow these tips and prioritize applying for low- and zero-APR cards, you can minimize the stress of paying high credit card interest rates.
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Annual Fee
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Rewards Rate
| 2X miles | 2 miles per dollar on every purchase |
| 5X miles | 5 miles per dollar on flights and vacation rentals booked through Capital One Business Travel |
| 10X miles | 10 miles per dollar on hotels and rental cars booked through Capital One Business Travel |
Intro Offer
Earn 200K miles when you spend $30K in the first 3 months, and an additional 200K miles when you spend $150K in the first 6 monthsLIMITED-TIME OFFER: Earn up to 400K bonus milesAnnual Fee
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Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.740-850Excellent
Why We Chose It
The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
- The Capital One Venture X business card has a very lucrative welcome offer.
- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month