Is a 29.99% APR High for a Credit Card? (2024)

FAQs

Is a 29.99% APR High for a Credit Card? ›

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.

Penalty APRs are part of why credit card overspending can be so dangerous, as they may reach higher than 29.99% when a payment is at least 60 days late. Interest rates this high would be unthinkable in most other common lending contexts.

There is no limit on card interest rates

While many states have usury laws that limit the interest rates that lenders can charge, many of these state laws don't apply to credit card rates. Instead, they apply mainly to loans, and even then, financial institutions tend to get around them through exemptions.

Annual percentage rate (APR) refers to the yearly interest rate you'll pay if you carry a balance on your credit card. Some credit cards have variable APRs, meaning your rate can go up or down over time.

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.

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.

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%.

Let's start by looking at the average overall credit card APR. Anything below the average credit card interest rate — 24.71% for new offers, as of May 2024, according to a LendingTree study — is generally considered a good APR, and anything above that rate is considered high.

If you're unhappy with your credit card's annual percentage rate (APR), securing a lower one may be as simple as asking your credit card issuer. The issuer may decline your request, but it never hurts to ask.

Do I pay APR if I pay on time? ›

Your credit card's annual percentage rate (APR) is your credit card's interest rate. If you carry a balance on your credit card, you'll need to pay interest until it's paid off in full. If you pay off your monthly statement balance in full and on time, you likely won't need to pay interest on purchases.

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.

It costs $30 to $50 in fees to transfer a $1,000 balance to a credit card, in most cases, as balance transfer fees on credit cards usually equal 3% to 5% of the amount transferred.

In general, keep unused credit cards open so you benefit from longer average credit history and lower credit utilization. Consider putting one small regular purchase on the card and paying it off automatically to keep the card active. At Experian, one of our priorities is consumer credit and finance education.

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.

The current highest credit card interest rate is 36% on the First PREMIER® Bank Mastercard Credit Card.

A 24.99% 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 24.99% APR is reasonable for personal loans and credit cards, however, particularly for people with below-average credit.

An APR is the interest rate you are charged for borrowing money. In the case of credit cards, you don't get charged interest if you pay off your balance on time and in full each billing cycle. Card issuers express this rate annually, but to find your monthly interest rate, simply divide by 12.