If you don't pay your full statement balance every month, your credit card's APR is actively costing you money. The average rate is around 22% — carrying $3,000 at that rate costs you over $55 a month in interest, or $660 a year. A card with a 12% APR would cost $30/month — saving $300/year on the same balance.
The rate that applies permanently — not just for an intro period. This is your most important number.
A high annual fee erodes interest savings. A $95 fee adds ~9.5% to the effective cost on a $1,000 balance.
Premium rewards cards typically have APRs 3–5% higher than equivalent no-rewards cards. The interest cost exceeds any rewards earned.
Credit unions are not-for-profit and often offer lower APRs than major banks. Membership requirements vary but are often accessible.
These are the monthly interest charges on a carried balance — not your total payment.
| Balance | At 22% (national avg) | At 18% | At 14% | At 10% |
|---|---|---|---|---|
| $1,000 | $18 | $15 | $12 | $8 |
| $3,000 | $55 | $45 | $35 | $25 |
| $5,000 | $92 | $75 | $58 | $42 |
| $10,000 | $183 | $150 | $117 | $83 |
Monthly interest charges only — not payments toward principal. Actual monthly payment would be higher. Based on simple monthly interest calculation.
Rewards cards often have APRs 3–5% higher than no-rewards equivalents. On a $3,000 balance, that 5% difference costs $150/year in extra interest — far more than most people earn in rewards on that spending level.
Some applicants don't qualify for the 0% intro offer — they get approved but at a higher ongoing rate. Always check what rate you'd get if the intro period doesn't apply to you.
Many cards marketed as 'low interest' have a 0% intro period but revert to 20–29% afterward. The ongoing rate is what matters if you'll still have a balance after month 12 or 21.
Many issuers will lower your rate if you call and ask, especially if you have a good payment history and have received better offers elsewhere. This takes 5 minutes and has no effect on your credit score.
Check if you qualify without affecting your credit score. Bank of America, Citi, and Capital One offer soft-pull pre-qualification tools. See your likely approval odds before submitting a full application. Full application guide →
For ongoing balance carriers, the Navy Federal Credit Union Platinum Card (8.99%–18% APR, members only) offers the lowest rate available anywhere. For non-military applicants, the Alliant Credit Union Visa Platinum (12.24%–20.24%) is the strongest accessible option. For a major bank, the BankAmericard has one of the lower standard APRs.
Generally no. Rewards cards typically carry higher APRs. On a $3,000 balance, a rewards card at 24% APR costs ~$720/year in interest vs. ~$360 on a 12% APR card — a difference of $360 that no cashback program will offset. Only consider rewards if you'll consistently pay in full.