What Is a Good Interest Rate on a Credit Card?
It’s very difficult to define a good interest rate on a credit card because there are so many factors that can determine the value of any one card. In the United States, interest rates exist from approximately 6% APR to nearly 40% APR. It might help to know that most department store cards have slightly less than 20% APR. Other countries may pay much higher interest rate amounts; Mexico may charge rates of between 30-50% especially for store issued cards. Thus defining “good” may be partly based upon a person’s location in the world. In the US, the lowest rates that are not introductory offers usually sit at about 6% and these are often offered to people with secured credit. This means credit is usually backed by equity in homes or businesses. People looking for unsecured credit may be able to find cards with a rate of about 10%, though this is subject to change. 10% rates are not expected when people’s credit is less than perfect. Even with imperfect credit, many people can get cards
