A good credit card interest rate is anything below the national average of 19.16%, which is where the typical bank rewards card sits as of April 2026. If you can land a rate in the 13% to 16% range, you’re doing well. Below 13% is excellent, and a 0% introductory offer is the best deal you’ll find for a limited time.
But “good” depends heavily on the type of card, where you get it, and your credit profile. Here’s how to judge the rate you’re being offered.
Current Average Rates by Card Type
Credit card APRs span a wide range, from roughly 11.5% to 32.5%, depending on the issuer and card category. The averages break down like this:
- Bank rewards card (personal): 19.16%
- Credit union rewards card (personal): 15.18%
- Bank non-rewards card (personal): 15.89%
- Credit union non-rewards card (personal): 12.99%
- Business rewards card (bank): 16.85%
- Student card (bank): 17.61% to 19.16%
- Student card (credit union): 14.17% to 14.90%
Two patterns jump out. First, credit unions consistently charge 3 to 4 percentage points less than banks across every category. A 15.18% rewards card from a credit union beats the 19.16% bank average by a meaningful margin. If you’re eligible to join a credit union, that’s one of the simplest ways to get a lower rate. Second, cards without rewards programs carry lower APRs than rewards cards, typically by 2 to 3 points. You’re essentially paying for those cash back or travel perks through a higher interest rate, which only matters if you carry a balance.
What Your Credit Score Gets You
Your credit score is the single biggest factor in the rate you’re offered. Data from the Consumer Financial Protection Bureau shows that new cardholders in 2024 received rates that varied by about 4 percentage points depending on their score:
- 760 and above: 25.8% average for new accounts
- 740 to 759: 27.3%
- 660 to 719: 29.0%
- 620 to 659: 29.7%
- Below 620: 30.0%
These numbers look higher than the overall averages above because they reflect rates on newly opened accounts, which tend to run higher than rates on existing cards. The overall 27.5% average for new accounts is significantly steeper than the 19.16% average across all existing accounts. That gap matters: if you’ve held a card for years, your rate is likely lower than what you’d get on a brand-new application today.
Even within the top credit tier, rates are high in absolute terms. A 25.8% APR on a $5,000 balance costs roughly $1,290 per year in interest if you only make minimum payments. The difference between excellent and poor credit saves you a few hundred dollars a year, but any rate above 20% adds up fast when you carry a balance month to month.
How Your Rate Is Calculated
Most credit cards use a variable rate, meaning it shifts when the federal prime rate changes. The formula is simple: your APR equals the prime rate plus a fixed margin set by the card issuer. That margin typically runs between 12% and 13%, though it can be much higher for riskier borrowers or certain card types.
When the Federal Reserve raises or lowers its benchmark rate, the prime rate moves with it, and your credit card APR adjusts within one or two billing cycles. This means the “good” rate threshold shifts over time. A 15% APR might be excellent in a high-rate environment and merely average when rates are low. Judging your rate against current averages rather than a fixed number gives you a more accurate picture.
Cash Advances Carry Much Higher Rates
The APR on your card isn’t one number. Purchase APRs, balance transfer APRs, and cash advance APRs are all different, and cash advances are consistently the most expensive. Banks charge an average cash advance APR of 28.51% on personal cards, compared to 19.16% for purchases. Credit unions are lower at 19.35% for cash advances, but that’s still several points above their purchase rate. Cash advances also start accruing interest immediately with no grace period, so even a short-term withdrawal gets expensive fast.
0% Introductory Offers
The lowest possible credit card interest rate is 0%, available through introductory promotions on new cards. These offers typically last 12 to 21 months, with most falling in the 12 to 15 month range. The longest widely available intro periods stretch to 21 months. After the promotional window closes, your rate jumps to the card’s standard variable APR, which is usually in the high teens to mid-20s.
A 0% intro APR is genuinely useful in two situations: financing a large purchase you can pay off within the promotional period, or transferring a high-interest balance from another card to save on interest while you pay it down. The key is paying off the balance before the regular rate kicks in. If you can’t realistically do that, a card with a permanently lower APR (like a credit union card in the 13% to 15% range) may save you more over time.
How to Get a Lower Rate
If your current rate is above the averages for your card type, you have several options. The most direct is calling your card issuer and asking for a rate reduction. This works more often than people expect, especially if you’ve been a customer for years, have a good payment history, and can reference a competing offer.
Beyond that, consider these approaches:
- Apply at a credit union: Across every card category, credit unions offer rates 3 to 4 points below banks. A credit union rewards card averages 15.18% versus 19.16% at a bank.
- Skip the rewards: If you carry a balance regularly, a no-rewards card at 12.99% to 15.89% saves more in interest than you’d earn in cash back or points.
- Improve your credit score: Even modest improvements can move you into a lower pricing tier. Paying down balances to reduce your credit utilization ratio is the fastest lever.
- Use a balance transfer card: Transfer high-rate debt to a 0% intro APR card and focus on paying it off during the promotional window.
If you pay your full statement balance every month, your interest rate is effectively 0% because you never get charged interest during the grace period. In that case, a higher APR on a rewards card costs you nothing, and the perks are pure upside. The APR only matters when you carry a balance from one month to the next.