What is a good Annual Percentage Rate (APR) for a credit card?

An Annual Percentage Rate (APR) of about 15% is generally considered a reasonable figure for credit cards. This rate reflects a balance between competitive offers and the factors that credit card issuers consider, such as risk and creditworthiness. A 15% APR is often within the typical range for many traditional credit cards, especially for those with average credit.

Understanding the context of APR is essential; it represents the cost of borrowing expressed as a yearly interest rate, which allows consumers to understand the true cost of credit when one carries a balance. While lower APRs such as 5% may seem attractive, they are uncommon for most credit cards, particularly those without special introductory offers or rewards. Similarly, very high APRs like 25% are usually applied to high-risk borrowers or those with poor credit histories and do not indicate favorable borrowing terms.

Thus, a 15% APR strikes a balance that is practical for consumers while also being sustainable for lenders, making it the most typical and viable choice among the options presented.