What is 15% APR On a Credit Card? (2024)

FAQs

What is 15% APR On a Credit Card? ›

An annual percentage rate (APR) of 15% indicates that if you carry a balance on a credit card for a full year, the balance will increase by approximately 15% due to accrued interest. For instance, if you maintain a $1,000 balance throughout the year, the interest accrued would amount to around $150.00.

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.

A 15% APR is good for credit cards and personal loans, as it's cheaper than average. On the other hand, a 15% APR is not good for mortgages, student loans, or auto loans, as it's far higher than what most borrowers should expect to pay. A 15% APR is good for a credit card. The average APR on a credit card is 22.89%.

That daily interest charge is added to your balance the next day. For example, let's say you have a credit card with an APR of 15%. Your daily rate would be 0.041% (15% divided by 365).

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.

The APR on a credit card is an annualized percentage rate that is applied monthly. If the advertised APR on a credit card is 19%, for example, then an interest rate of 1.58% will be imposed on the outstanding balance each month. As mentioned, any given credit card may come with several different APRs attached.

The bottom line on APR

Remember that APR is only applied if you're carrying an outstanding balance on your card. You can typically avoid paying any interest charges if you pay off your card balance before the statement period ends each month. Selecting the right credit card shouldn't be complicated.

APR is the price you pay for a loan. It typically includes interest rates and fees. APR can sometimes be the same as a loan's interest rate, like in the case of most credit cards. APR may be fixed or variable, meaning the rate may stay the same or it might change with market factors.

Why is my APR so high with good credit? ›

Key Takeaways

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.

An APR is considered to be a good rate when it is at or below the national average, which currently sits at 20.40%, according to the Fed. This means that a credit card offering a fixed rate lower than 20.40% or a variable rate with a maximum of 20.40% would be considered a good APR for the average borrower.

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.

A good APR for a credit card is around 17% or below. A credit card APR in this range is on par with the interest rates charged by credit cards for people with excellent credit, which tend to have the lowest regular APRs.

An annual percentage rate (APR) of 15% indicates that if you carry a balance on a credit card for a full year, the balance will increase by approximately 15% due to accrued interest. For instance, if you maintain a $1,000 balance throughout the year, the interest accrued would amount to around $150.00.

APRs vary depending on your credit score and the type of card you're considering. In general, a good credit card APR is any APR that falls at or below the national average. The best low-interest credit cards on the market offer rates as low as 17.24 percent.