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. You still shouldn’t settle for a rate this high if you can help it, though.
24.99% Is a Good APR For:
Credit cards
A 24.99% APR is reasonable but not ideal for credit cards. The average APR on a credit card is 22.89%.
Personal loans
A 24.99% APR is decent for personal loans. It’s far from the lowest rate you can get, though. Personal loan APRs tend to range from around 4% to 36%.
24.99% Is NOT a Good APR For:
Mortgages
A 24.99% APR is very expensive for a mortgage. The average 30-year fixed mortgage rate is around 3%.
Student loans
A 24.99% APR is not good for student loans. The rates on federal student loans tend to be around 3% to 5%. Private student loans’ rates range from 1% to 12%.
Auto loans
A 24.99% APR is not good for auto loans. APRs on auto loans tend to range from around 4% to 10%, depending on whether you buy new or used.
This answer was first published on 05/13/21 and it was last updated on 03/26/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
Yes, a 24% APR is high for a credit card. While many credit cards offer a range of interest rates, you'll qualify for lower rates with a higher credit score. Improving your credit score is a simple path to getting lower rates on your credit card.
Is 25 APR good or bad? ›
This is one example of “bad APR,” as carrying a balance at a 25% APR can easily create a cycle of consumer debt if things go wrong and leave the cardholder worse off than when they started.
What does 24.99% variable APR mean? ›
An annual percentage rate (APR) of 24.99% indicates that if you carry a balance on a credit card for a full year, the balance will increase by approximately 24.99% due to accrued interest. For instance, if you maintain a $1,000 balance throughout the year, the interest accrued would amount to around $250.00.
What is 24% APR? ›
If you have a credit card with a 24% APR, it is the rate you're charged over 12 months—this means that each month comes out to be 2% (24% divided by 12 months). This shows how much you have to pay to borrow money monthly.
What is an acceptable APR rate? ›
The APR you receive is based on your credit score – the higher your score, the lower your APR. A good APR is around 22%, which is the current average for credit cards. People with bad credit may only have options for higher APR credit cards around 30%. Some people with good credit may find cards with APR as low as 16%.
What is a good APR percentage? ›
It depends on the type of card you're looking at, as well as your own credit. A credit card APR below 10% is definitely good, but you may have to go to a local bank or credit union to find it. The Federal Reserve tracks credit card interest rates, and an APR below the average would also be considered good.
Is 24 a bad APR? ›
Generally, an APR below 21% is relatively low. Anything over 24% is more expensive. If you pay off your credit card balance in full every month, the APR won't be as important as you won't be paying interest. But if you forget and the APR is high, the interest charges will quickly rack up.
Does APR matter if you pay on time? ›
Your APR doesn't matter if you pay off your balance each month, thanks to your grace period.
What does 25% APR look like? ›
Supposing your credit card has a 25% APR and you carry a $100 balance for a year, you would owe $125 by year's end.
How do you calculate 24.99 APR? ›
Calculate your daily APR in three steps:
- Find your current APR and current balance in your credit card statement.
- Divide your APR rate by 365 (for the 365 days in the year) to find your daily periodic rate.
- Multiply your current balance by your daily periodic rate.
Key takeaways. Your credit card APR can go up if the prime rate changes, you paid your credit card bill late, your intro APR offer ended or your credit score dropped. If your APR increases, you can work on paying down your balance or transfer your balance to a card with a low or 0 percent intro APR offer.
Is APR charged monthly? ›
The APR on a credit card is an annualized percentage rate that is applied monthly. If the advertised APR on a credit card is 19%, for example, then an interest rate of 1.58% will be imposed on the outstanding balance each month. As mentioned, any given credit card may come with several different APRs attached.
What is APR for dummies? ›
The annual percentage rate (APR) is the cost of borrowing on a credit card. It refers to the yearly interest rate you'll pay if you carry a balance, plus any fees associated with the card. APR often varies by card. For example, you may have one card with an APR of 9.99% and another with an APR of 14.99%.
Do you get charged APR if you pay minimum payment? ›
While paying less than your full balance may save you money this month, it costs you more in the long run. If you pay the credit card minimum payment, you won't have to pay a late fee. But you'll still have to pay interest on the balance you didn't pay.
How to lower APR? ›
Here are some tips on how you can lower your credit card APR:
- Improve your credit score. An improvement in your credit score is critical if you want to start reducing the APR you're being offered by lenders on credit card applications. ...
- Consider a balance transfer. ...
- Pay off your balance. ...
- Learn your credit issuer's policy.
Generally, an APR below 21% is relatively low. Anything over 24% is more expensive. If you pay off your credit card balance in full every month, the APR won't be as important as you won't be paying interest. But if you forget and the APR is high, the interest charges will quickly rack up.
Is 25 APR high for a car loan? ›
The law says that the most a lender can charge for an auto loan are about 16% APR, but some lenders get away with 25% or more. Your annual percentage rate (APR) for a car loan depends on your credit score and whether you want a new or used car.
What is a high APR for a loan? ›
A high-interest loan charges interest and fees that are higher than most other loans. Typically, a loan with an annual percentage rate, or APR, over 36% is considered a high-interest loan. If you need cash fast or have low credit, you may be offered a high-interest loan or feel like you don't have any other options.
