No, 2699% is a high APR for a credit card While it may not be the highest rate available, it’s significantly above the average APR for new credit card offers, which currently sits around 16.27%.
Here’s why 26.99% is considered high:
- It’s much higher than the average APR. This means you’ll be paying significantly more in interest charges each month, especially if you carry a balance.
- There are many credit cards with lower APRs. You can easily find cards with APRs in the single digits, which will save you a lot of money on interest.
- You may qualify for a lower APR. Your creditworthiness is a major factor in determining your APR. If you have good credit, you may qualify for a much lower rate.
However, there are some situations where a 26.99% APR might be acceptable:
- If you’re only using the card for emergencies. If you only plan to use the card for unexpected expenses, the high APR won’t be a big deal as long as you pay off your balance quickly.
- If you’re building credit. If you have bad credit, a card with a high APR may be your only option. However, you should still aim to improve your credit score so you can qualify for a lower rate in the future.
The following should be taken into account prior to obtaining a credit card with a 26 99% APR:
- How much will you be charged in interest? Calculate how much interest you will pay each month based on your average balance and the APR.
- Can you afford the monthly payments? Make sure you can afford to make the minimum payments each month, even if you carry a balance.
- Are there any other fees? Some cards with high APRs also have high annual fees or other charges.
- Can you qualify for a lower APR? Check your credit score and see if you can qualify for a card with a lower APR.
Overall, a 26. 99% APR is a high rate for a credit card. A lower annual percentage rate (APR) is what you should seek for in a new credit card.
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Chip Lupo , Credit Card Writer
Yes, a 26. 99% of annual percentage rates are high for credit cards because they are higher than the average APR for new credit card offers. Credit card annual percentage rates (APRs) can be significantly lower, and certain cards offer an introductory 20% APR for a set number of months, which can save you a significant amount of money.
Keep in mind that your 26. 99% APR should apply only when you carry a balance from month to month. With most credit cards, there is a grace period between the end of your billing period and your due date, so as long as you pay off your entire balance by the deadline each month, you won’t be charged interest on any of your purchases. Thus, you can concentrate on other features like rewards if you intend to pay in full each month rather than worrying about the APR.
On WalletHub, you can compare the top credit cards and discover more about what constitutes a good interest rate. This answer was first published on 03/18/24. You should always verify accuracy and up to date information about a financial product with the financial institution making it available. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
The highest credit card interest rate in recent memory was 79. 9% on a card offered by First Premier Bank in 2010 but that offer’s not available anymore. The current highest credit card interest rate is 36% on the First PREMIER® Bank Mastercard Credit Card.
The next highest credit card interest rate seems to be 35. 99%, charged by the Total Visa® Card and the Milestone® Mastercard®. These rates are very high when you consider that the average interest rate is only around 22. 89%.
APR is yearly, not monthly. More precisely, the estimated annual cost of borrowing money with a credit card or loan is known as the annual percentage rate, or APR. The APR includes the interest charges that will apply to your balance, as well as any related fees.
APR on Credit Cards
When you carry a balance on a credit card, the APR is accumulated on a daily basis. But you will not incur interest on purchases.
If you take advantage of the introductory period and pay off your debt in full, an APR of 200% is good for your credit. Although credit card APRs don’t directly impact your credit scores, not having to pay interest will allow you to pay off a big amount of debt more quickly, which will eventually raise your credit score. Using a 0% APR credit card irresponsibly, however, can have the opposite effect.
With a 0% APR credit card, you dont pay…
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What is a good APR on a credit card?
FAQ
Is 26 APR rate good?
Is 25 percent APR high?
What does 26 APR mean on a credit card?
What is a good APR rate?
Is a 24 99% Apr good?
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.
Is a 12% Apr a good credit card interest rate?
Yes, a 12% APR is a good credit card interest rate because it is cheaper than the average interest rate for new credit card offers. Very few credit cards offer a 12% regular APR, and applicants must usually have good or excellent credit to be eligible.
What is a good APR for a credit card?
A good APR for a credit card is around 17% or below. A credit card APR in this range is on par with the interest rates charged by credit cards for people with excellent credit, which tend to have the lowest regular APRs. The average credit card APR overall is around 23% right now, according to WalletHub’s latest Credit Card Landscape Report.
Who qualifies for a credit card with the lowest Apr?
Only consumers with an excellent credit score qualify for credit cards with the lowest credit card APR. Even if you get a good APR for a credit card, most credit card interest rates are actually quite high. Credit cards are especially expensive when compared with the average interest rate on a personal loan (which is about 11.4% as of mid 2023).