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Is 24.99% APR high

Credit cards can be an extremely powerful financial tool when used correctly.
They allow users to build credit, earn points, and open doors for vacations and rewards that could not be possible without them.
However, if credit cards have a dark side, it’s their annual percentage rate—or APR.
Unfortunately, if you’re like 25% of rewards credit cardholders,¹ you will most likely carry a balance at some point.

  • Having a clearer picture of your credit profile will help us make sure that your approval it’s likely that as accurate as you possibly can.
  • Credit card APRs can vary widely based on a variety of factors, from your credit history to your debt-to-income ratio and beyond.
  • Remember, financial situations vary from individual to individual, so it’s tough to say just what a bad APR for credit cards is.

A 24.99% APR isn’t particularly good for people that have good or excellent credit.
Assuming you have average or below-average credit, however, it is just a reasonable rate for bank cards.
Credit card providers often charge another, higher, interest rate when you borrow cash making use of your credit card.
That is your standard APR that will be applied to all purchases you make with the card.
It is usually the rate that’s advertised once you apply or are offered a plan from a card issuer.
This implies that it’s always best to be familiar with your credit card’s APR and make an effort to get the lowest

What Is Apr? What You Need To Know

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If a low APR on purchases can be your priority, consider researching options from credit unions, where interest rates on credit cards tend to be less than at major banks.

  • Further, if you’re an applicant with poor or limited credit applying for a secured charge card, you’ll be facing an average APR of 26.25%.
  • according to a recent TransUnion report, & most people don’t have enough savings to cover a crisis.
  • Our editors and reporters thoroughly fact-check editorial content to guarantee the information you’re reading is accurate.
  • However, if bank cards have a dark side, it’s their annual percentage rate—or APR.

For example, the Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union includes a low 10.99% to 17.99% variable APR and requires membership to Andrews Federal Credit Union.
But anyone can join by meeting the qualification requirements or opting to become listed on the American Consumer Council (ACC) for free with the promo code “Andrews.”
While you may not be in a position to control all factors that determine your APR, you can be proactive in maintaining or polishing your creditworthiness.
You can also take a shot at negotiating a lower APR together with your creditor.

Featured 0% Apr Credit Cards

For example, let’s say you have a credit card with an APR of 15%.
If the balance on your own card today is $200, today’s daily interest charge will be $0.08 ($200 multiplied by 0.041%).