What is the average APR on credit cards?

The average Annual Percentage Rate, or APR, for credit cards depends on where you live and your credit score. In Texas, the average APR for credit cards is around 16.58%. Credit card companies use your credit score to determine how risky it is to lend you money, and they use the APR to set interest rates accordingly. A credit score is a number between 300-850 that measures your financial history. Each credit card company sets their own criteria for what credit score they’re looking for. Generally speaking, if your credit score is over 700, you’re more likely to get a lower APR. If it’s lower than this, you’ll likely have to pay a higher rate. In Texas, the law dictates that credit card companies cannot set an APR higher than 18%, but they can offer a lower rate if they choose to. Of course, if you miss a payment or make a late payment, the rate may increase dramatically. It’s important to remember that the average APR can change depending on the credit card company and your credit score. You may qualify for a lower APR depending on your credit score or the specific credit card you’re applying for. Make sure to comparison shop and research each card carefully before signing up.

Related FAQs

How do credit card companies make money?
Is there a limit on the amount of fees a credit card company can charge?
What is a balance transfer?
How do I dispute unauthorized charges on my credit card?
What can I do to improve my credit score?
What is the most important information to know about a credit card?
What is the Truth in Lending Act?
What are merchant fees associated with credit cards?
What is the difference between a secured and an unsecured credit card?
What are the different kinds of credit card fraud?

What is the average APR on credit cards?

Related FAQs

Related Blog Posts