A 21.99% APR is not good for mortgages, student loans, or auto loans, as it’s far higher than what most borrowers should expect to pay and what most lenders will even offer. A 21.99% APR is reasonable for personal loans and credit cards, however, particularly for people with below-average credit. You still shouldn’t settle for a rate this high if you can help it, though.
21.99% Is a Good APR For:
Credit cards
A 21.99% APR is reasonable but not ideal for credit cards. The average APR on a credit card is 23.1%.
Personal loans
A 21.99% APR is decent for personal loans. It’s far from the lowest rate you can get, though. Personal loan APRs tend to range from around 4% to 36%.
21.99% Is NOT a Good APR For:
Mortgages
A 21.99% APR is very expensive for a mortgage. The average 30-year fixed mortgage rate is around 3%.
Student loans
A 21.99% APR is not good for student loans. The rates on federal student loans tend to be around 3% to 5%. Private student loans’ rates range from 1% to 12%.
Auto loans
A 21.99% APR is not good for auto loans. APRs on auto loans tend to range from around 4% to 10%, depending on whether you buy new or used.
This answer was last updated on 03/26/24 and it was first published on 04/26/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
A 21.99% APR is reasonable but not ideal for credit cards. The average APR on a credit card is 23.1%. A 21.99% APR is decent for personal loans. It's far from the lowest rate you can get, though.
Is 21% APR bad? ›
The APR you receive is based on your credit score – the higher your score, the lower your APR. A good APR is around 22%, which is the current average for credit cards. People with bad credit may only have options for higher APR credit cards around 30%. Some people with good credit may find cards with APR as low as 16%.
What does 21.9 APR mean? ›
APR means Annual Percentage Rate. It's the cost of borrowing money over a year on a credit card or loan. It takes into account interest, as well as other charges you may have to pay, such as an annual fee.
How much is 21.99% APR? ›
An annual percentage rate (APR) of 21.99% indicates that if you carry a balance on a credit card for a full year, the balance will increase by approximately 21.99% due to accrued interest. For instance, if you maintain a $1,000 balance throughout the year, the interest accrued would amount to around $220.00.
Why is my APR so high with good credit? ›
Even people with good credit scores make mistakes, and a bank may charge a penalty APR on your credit card without placing a negative mark on your credit report. Penalty APRs typically increase credit card interest rates significantly due to a late, returned or missed payment.
What is an acceptable APR rate? ›
The First Call Resolution industry standard for a good FCR rate is 70% to 79%. Therefore, call centers with an FCR rate below 70% need improvement. Conversely, the World-class FCR rate is 80% or higher, and only 5% of call centers can achieve the World-Class FCR Rate from a CX journey perspective.
What's the best APR for a credit card? ›
It depends on the type of card you're looking at, as well as your own credit. 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. The Federal Reserve tracks credit card interest rates, and an APR below the average would also be considered good.
How to lower APR? ›
Here are some tips on how you can lower your credit card APR:
- Improve your credit score. An improvement in your credit score is critical if you want to start reducing the APR you're being offered by lenders on credit card applications. ...
- Consider a balance transfer. ...
- Pay off your balance. ...
- Learn your credit issuer's policy.
What is the best credit card with the lowest interest rate? ›
The Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union tops our list thanks to the low interest rates, strong rewards program and no foreign transaction fees — all at no annual fee. This card offers a low variable APR of 13.74%% to 18.00% on purchases; 13.74% to 17.99% on balance transfers.
Do I pay APR if I pay on time? ›
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.
Yes, APR is charged monthly. Although APR is a yearly percentage rate, it's applied monthly to the outstanding balance to calculate statements. How do you avoid paying APR on a credit card? If you're able to pay your credit card balance in full each month by the due date, you can avoid paying interest.
Why is my APR going up every month? ›
Your credit card APR can go up if the prime rate changes, you paid your credit card bill late, your intro APR offer ended or your credit score dropped. If your APR increases, you can work on paying down your balance or transfer your balance to a card with a low or 0 percent intro APR offer.
What is a reasonable APR rate? ›
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.
Is 21 percent a high interest rate? ›
Generally, an APR below 21% is relatively low. Anything over 24% is more expensive. If you pay off your credit card balance in full every month, the APR won't be as important as you won't be paying interest. But if you forget and the APR is high, the interest charges will quickly rack up.
What is the minimum payment on a $3,000 credit card? ›
The minimum payment on a $3,000 credit card balance is at least $30, plus any fees, interest, and past-due amounts, if applicable. If you were late making a payment for the previous billing period, the credit card company may also add a late fee on top of your standard minimum payment.
Is 21% high for a credit card? ›
How to evaluate credit card APRs. As of November 2023, the average APR charged for credit card accounts that incurred interest was 22.75%, according to the Federal Reserve. For all accounts, the average was 21.47%. If your APR is below the average, you can probably consider it good.
Is 20% APR good for a credit card? ›
For someone with a good or very good credit score, an APR of 20% could be good, while a 12% APR may be good for someone with an excellent score. If your score is lower, an APR of 25% could be considered good.
What's a normal credit card APR? ›
What's the average interest rate on new credit card offers?
Category | Minimum APR | Average |
---|
Average APR for all new card offers | 21.48% | 24.92% |
0% balance transfer cards | 19.02% | 23.58% |
No-annual-fee cards | 20.94% | 24.43% |
Rewards cards | 21.21% | 24.85% |
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