What's a good APR on a credit card?

Under 20% is good in the current rate environment. Under 15% is excellent. Above 25% is the penalty-band — pay in full to avoid the math entirely.

APRs are tied to the prime rate, which sits at 7.5% as of 2026. The Fed's spread above prime varies by card type: cashback cards average 20-25%, secured + credit-builder cards average 28-30%, and premium cards average 22-29%. The honest answer: if you carry a balance, no APR is good — pay in full and the APR doesn't matter. If you can't, optimize for the lowest available rate at your FICO bucket and prioritize 0% intro APR offers.

Reviewed by the ClearValue Editorial Team · Last updated 6/29/2026