# What Is a Good Credit Card Interest Rate?

If you’re looking to get a good credit card interest rate, there are a few things you should know. In this blog post, we’ll explore what a good credit card interest rate is and how you can get one.

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## What is a credit card interest rate?

A credit card interest rate is the price you pay for borrowing money. It’s expressed as a percentage of your total balance, and it can be either variable or fixed. Variable rates can change over time, while fixed rates stay the same.

Interest is calculated based on your APR and your daily periodic rate. Your APR is the annual percentage rate charged by your issuer, while your periodic rate is a fraction of that APR that’s applied to your balance each day.

For example, let’s say you have a \$1,000 balance on a card with a 15% APR. That’s an annual interest rate of \$150. If your card has a daily periodic rate of 0.04167%, that would be multiplied by your balance to give you daily interest charges of 41.67 cents (\$1,000 x 0.004167 = \$4.167).

Paying interest is optional if you pay your balance in full and on time each month. But if you carry a balance from one month to the next, you’ll be charged interest on that amount every day until you pay it off. The higher your APR, the more expensive it will be to carry a balance.

Most issuers charge different APRs for purchases, balance transfers and cash advances. They may also offer promotional APRs that are lower than the standard rate for a limited time, usually 12 to 18 months. After that period ends, the APR will usually go up.

## How is credit card interest rate determined?

There’s no one answer to the question, “What is a good credit card interest rate?” Unit rates will vary depending on the type of card you’re using, the issuer, your creditworthiness and other factors.

Generally, however, you can get a good idea of what is a good credit card interest rate by looking at averages. According to 2017 data from the Federal Reserve, the average APR for all credit card accounts was 14.87 percent. (This included both retail and non-retail cards.) Accounts that were assessed interest had an average APR of 16.67 percent.

For retail cards specifically, the average APR was 14.52 percent. And for non-retail cards, the average APR came in at 15.24 percent.

When you carry a balance on your credit card from month to month, you’ll be charged interest on that outstanding balance. The amount of interest charged will depend on your unit rate (or annual percentage rate, APR).Credit card issuers use a variety of factors to set APRs, including:
-The type of card you’re using (for example, a rewards card vs. a basic card)
-The prime rate
-The issuer’s own internal guidelines

Interest rates on credit cards can change over time, so it’s important to keep tabs on what your particular issuer is doing. You can typically find this information in the terms and conditions for your account or on your statement each month.

## What is a good credit card interest rate?

Credit card companies typically charge interest on your outstanding balance at a rate that is a percentage of the APR, or annual percentage rate. The APR is the total cost of borrowing money on your credit card for one year, including any fees that may be charged.

The interest rate on your credit card can vary depending on the type of card you have, the issuer, and the prime rate. The prime rate is the interest rate that banks charge their best customers and is used as a benchmark for calculating credit card interest rates.

Credit card companies use different methods to calculate interest charges, so it’s important to understand how your credit card issuer calculates interest on your account. Some issuers use a daily periodic rate, which is based on the APR divided by the number of days in the billing period. Other issuers use a monthly periodic rate, which is based on the APR divided by 12 (the number of months in a year).

Most issuers use the average daily balance method to calculate interest charges. This method totals all of the balances during each day of the billing period and divides that amount by the number of days in the billing period. The resulting daily average balance is multiplied by the monthly periodic rate to arrive at the total amount of interest charges for that billing period.

You can avoid paying interest on your credit card purchases by paying your balance in full each month. Most credit cards have a grace period of 21 days from the end of the billing cycle until finance charges begin to accrue. This means that if you pay your balance in full within 21 days after receiving your bill, you will not be charged any interest on those purchases.

Some cards offer 0% introductory Annual Percentage Rates (APRs) for a limited time, which can save you money if you plan to carry a balance on your account. Just be sure to understand how these offers work before you apply for a new card.

## How to get a good credit card interest rate?

The average credit card interest rate is around 18 percent, but you can get a much lower rate if you have good credit. Here are a few tips on how to get a good credit card interest rate:

1. Check your credit score. You can get a free credit report from AnnualCreditReport.com. A good credit score is usually 700 or higher.

2. Compare rates from different issuers. Some issuers offer lower rates to customers with good credit, so it pays to shop around.

3. Negotiate with your issuer. If you have good credit, you may be able to negotiate a lower interest rate with your issuer.

4. Look for discounts and rewards programs. Some issuers offer discounts or rewards programs that can save you money on interest charges.