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The most recent mean annual salary for teachers nationwide is $66,450, according to the Bureau of Labor Statistics. However, there can be considerable variation depending on where a person lives, what level of student they teach, how much experience they have, and other factors.

Working as a teacher comes with an equal set of challenges and rewards. Being able to help shape young minds can be very fulfilling as well as challenging.

Want to learn more about how much teachers make and what the role entails? Read on for more insight.

What Are Teachers?

Working as a teacher can look a bit different depending on whether the teacher works in an elementary, middle, or high school setting. That being said, all teachers create lesson plans and deliver those lessons to their students. They often work individually with students who need a bit of extra support and can help foster social and emotional development. Alongside instructing pupils, they grade assignments, write report cards, and meet with parents to help them understand their child’s education progress.

Teaching may not be the right career for those who are introverts. It typically involves interacting with students, their parents, and other faculty members for much of the workday.

Worth noting: Qualifications for teaching can vary. Teachers may be required to have certificates in order to teach, which can mean time, energy, and expense to attain those credentials.


💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

How Much Do Starting Teachers Make a Year?

Like many chosen career paths, working as an entry-level teacher often comes with a lower salary. How much money might a teacher make a year when they are first starting out? The mean salary for the lowest 10% of earners in this role nationwide is $30,230.

Incidentally, some teachers do rise to earn six figures. As teachers gain years of experience, they can increase their salary (the top 10% of earners make $102,800 per year).

What is the Average Salary for a Teacher?

Regarding how much a teacher can expect to earn on average, as briefly noted earlier, the national mean is $66,450. That being said, the state you work in can greatly impact how much they earn. Cost of living and other factors are responsible for the variation in salaries, which can be significant. For example:

•   The average annual salary in Florida is $32,088.

•   In Oregon, the average is $52,816.

Prospective teachers can review the following chart to learn more about what their salary and hourly wage expectations should be in their state.

What is the Average Teacher Salary by State for 2023

Source: ZipRecruiter

Recommended: What Trade Makes the Most Money?

Teacher Job Considerations for Pay & Benefits

How much a teacher earns and what type of benefits they qualify for can depend on if they choose to work as a full-time teacher or as a substitute teacher. If someone works as a substitute, they are generally paid a day rate only for the days they work and don’t qualify for benefits like health care or retirement plans.

However, working as a substitute teacher can be a great job for retirees looking to earn a bit of extra cash without committing to a consistent part-time work schedule. It might be good for someone who has a side hustle going or can fill in free days with work as, say, a rideshare driver or babysitter.

Full-time teachers generally qualify for those benefits and other traditional employee benefits like paid time off for sick and personal days. Some may even still qualify for pensions, which can be a real plus when it comes to retirement planning.

There’s also the fact that school is out in the summer. Some teachers may love this time off and want that family time. Others may choose to teach summer school or at a camp or otherwise bring in extra income. Still others may use that time for creative or entrepreneurial projects, but it’s important to note whether or not you will receive a paycheck during those months.


💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Pros and Cons of Teacher Salary

Still on the fence about becoming a teacher? These are some of the common pros and cons associated with the salary.

Recommended: How to Negotiate for Competitive Pay

The Takeaway

The average teacher salary in the US tops $66,000. If someone has a passion for teaching and likes working with young people, they will likely love their job. There are also valuable benefits that may be available, such as paid vacations and summers off.

SoFi helps you stay on top of your finances.

FAQ

Can you make 100k a year as a teacher?

It is possible to make $100,000 a year as a teacher, which is a good salary. The 90th percentile of earners in this role nationwide brings home $102,800 annually. Teachers tend to see higher salaries as they gain years of work experience.

Do people like being a teacher?

Working as a teacher can be very hard work, but it is often very rewarding. Those who enjoy working with children and helping them learn will find they get a lot out of being a teacher. However, if they consider themselves to be antisocial, they may find this role very draining.

Is it hard to get hired as a teacher?

How challenging it is to get hired as a teacher can vary by location and year. It simply depends on what the current demand for teachers is. It is generally harder to find a role as a public school teacher as those jobs require having specific advanced degrees.

Photo credit: iStock/baona

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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While the median annual salary for delivery drivers as of 2022 is $38,220, according to the Bureau of Labor Statistics, data from Zippia suggests that salaries in the $40K to $60K realm are possible. What’s more, UPS reports that the average overall compensation package for a full-time UPS delivery driver is $145,000, which reflects the benefits package that employees can receive.

For those who like working independently and being behind the wheel, a career as a UPS (United Parcel Service) driver could be a good fit. Keep reading for a breakdown of how much UPS drivers can earn and what this role entails.

What Are UPS Drivers?

UPS drivers pick up and deliver packages on a designated driving route for the UPS, a global package delivery and logistics company. They can have routes that include stops at residential and business addresses. You may well be familiar with the brown UPS trucks arriving and departing from your home or workplace.

Being a UPS driver can be a good option for introverted people since much of the day is spent solo, though there can be some social interaction when dropping off packages and getting signatures for them. Also, obviously, a UPS driver will need to be comfortable behind the wheel, in traffic, and ensuring that parcels get from point A to point B.

In terms of qualifications, you will likely need to be at least age 23, have a clean driving record, be trained to drive a truck, and be able to physically move packages of a certain weight (say, up to 70 pounds). If you have these qualifications, being a UPS driver can be a good-paying job without a college degree being required.


💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

How Much Do Starting UPS Drivers Make a Year?

If someone is new to working as a UPS driver, they shouldn’t expect to earn a top salary just yet. If you’re wondering how much a UPS delivery driver makes when they are entry-level, the lowest 10% of earners can expect to earn less than $26,740.

Recommended: Is $100K a Good Salary?

What Is the Average Salary for a UPS Driver?

You’re probably curious about how much a UPS driver can make annually, or on salary vs. hourly.

The answer to that question depends greatly on what state they work in. As the table illustrates below, the average hourly pay for UPS drivers can range from $19.56 to $30.05.

These figures are well above the national minimum wage.

What Is the Average UPS Driver Salary by State for 2023

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

UPS Driver Job Considerations for Pay & Benefits

A job as a UPS driver can appeal to those who have not earned a college degree and those who enjoy driving. However, this can be a physically demanding job, considering you are behind the wheel and carrying packages all day, and it may be stressful to be in traffic or dealing with the pressures of getting packages to their destination. Many workers, however, will enjoy the independence. It can be a good job for antisocial people, too.

Along with receiving a salary, UPS drivers also gain access to valuable employee benefits. This table highlights the current benefits for UPS drivers.

Pros and Cons of UPS Driver Salary

There aren’t any notable cons associated with the UPS driver salary. These roles are in high demand and often regarded as having competitive pay and great employee benefits. The real question may be whether the job suits a particular employee’s needs and if they enjoy the challenges of the job, such as driving all day.

Recommended: How Much House Can I Afford?

The Takeaway

The average full-time truck driver in the US makes $38,220 a year, but UPS workers seem to average in the $40k to $60k range. In addition to pay, UPS drivers gain access to valuable employee benefits like employer-sponsored healthcare, paid time off, and a pension plan. These benefits can help people balance their budget and enjoy quality of life, personally and financially.

FAQ

Can you make 100k a year as a UPS driver?

Yes, it may be possible to make $100,000 or more a year as a UPS driver, depending on where you work, how long you have been on the job, and what your specific role is. UPS drivers earn good salaries and on average, full-time drivers earn a compensation package of up to $145,000, according to UPS.

Do people like being a UPS driver?

Many people enjoy being a UPS driver due to the independent and consistent nature of the work. Those who would prefer to spend their days on their own versus working on a team could enjoy this role.

Is it hard to get hired as a UPS driver?

Because UPS drivers earn good salaries and have robust benefits packages, these can be competitive roles to land. That being said, UPS hires drivers all across the country so there are many job opportunities with this company.

Photo credit: iStock/sturti

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Ever since the first credit card debuted in 1958, people have been using them as a convenient form of payment, whether for big-ticket items or small daily purchases. As credit cards have become increasingly popular, options have multiplied. If you are looking to open a new credit card, you may be wondering, “Which credit card is right for me?”

While there is no single perfect credit card that is the best one for everyone, you can follow a few steps to see if you can find the right card for you. There are several variables to consider, from rewards to interest rates. Depending on your answers to some of the questions below, you may be able to narrow down your options and decide on the right card to apply for and use.

Check Your Credit

One of the first things that you will want to do is check your credit score. There are a number of places where you can check your credit score for free once a year. Credit scores typically range from 300 to 850, from poor to excellent.

Understanding your credit score can help you determine which credit cards you might be able to get. The way credit cards work is that typically, the cards with the highest rewards and most benefits also require the best credit scores. If your credit is fair or poor, you are not likely to be approved for those credit cards, so it may not make sense to even fill out an application.

Recommended: Guide to Credit Score Ranges

Identify Which Type of Credit Card You Need

There are many different types of credit cards out there, so the next step can be identifying which type of credit card you are looking for.

•   If you are looking for a rewards credit card that offers airline miles or other travel rewards, that can help narrow down your choices.

•   Another option might be a credit card that earns cash back with every purchase.

•   You might also compare interest rates and see which offer is most attractive to you.

•   If you are working on building your credit, there may be a student or secured credit card to suit your needs.

Understanding the different types of cards that are available can help you choose the right credit card for your specific situation.

Narrow Your Choices by Asking the Right Questions

As you make your decision about which credit card is right for you, consider these points:

•   Some credit cards offer higher rewards in specific bonus categories, while others may offer a flat rate on all purchases. If you make a lot of purchases at grocery stores, gas stations, or home improvement stores, you may want to get a credit card that offers higher rewards rates in those categories.

•   If you have more balanced spending, it might make more sense to get a credit card that offers a high rewards rate on all purchases, no matter where you spend. Many people like using cash back rewards, among the various redemption options.

•   You’ll also want to look at any annual or other fees associated with a card to make sure you are getting enough in value to offset the cost of any fees you have to pay. It can sometimes make sense to have a credit card with an annual fee if the benefits are worth it to you (say, you travel a lot, and the card offers access to a network of posh airport lounges). That said, there are many excellent credit cards that do not charge an annual fee.

•   If you are focused on building your credit, see which secured credit cards are available. These cards involve a cash deposit that serves as collateral in case you can’t make a payment.

Recommended: Understanding Purchase Interest Charges on Credit Cards

Apply for the Credit Card That Offers You the Highest Value

Once you’ve figured out what kind of rewards you want to earn and what card you are likely to be approved for given your credit history, you can look at a few cards that fit those criteria. Compare interest rates, and consider the three main reasons you might consider applying for any particular card:

•   The value of the rewards you will earn with everyday purchases.

•   How much you might get from any one-time initial credit card bonus offers.

•   Any perks or benefits you receive just from having the card.

Carefully review each of these benefits for any cards you are considering and then apply for the card that gives you the best value.

Credit Card Tips

Once you’ve received your new credit card, these tips may help as you use it:

•   Set up a plan to pay it off in full each and every month if possible. Interest rates on your balance tend to be steep, so avoid paying those costs as best as you can.

•   While you may be able to pay your credit card with a debit card in some instances, it will likely be easier to set up your credit card account to automatically be paid from your bank account.

•   If you’re using this new card to replace a previous card, you may want to update any automatic bill payments to use your new card information.

•   If your bill is due right before payday, call the issuer and see if you can shift the date by which payment is needed. Some card issuers can accommodate this request.

The Takeaway

There are hundreds of different credit cards out there, and each one comes with their own terms and perks. If you’re curious about “Which credit card is right for me?” know that there isn’t a single credit card that is the best credit card for everyone — instead, you’ll have to analyze the options and pick the best one for you.

Carefully review which cards you’re likely to be approved for, the rewards and benefits of each one, and any annual fees associated with the card to find the one that’s right for you.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

How do I know what credit card is right for me?

There are a couple of different questions you’ll want to ask yourself to help decide which credit card is right for you. First, check your credit score, and look for a card that targets users within that credit score range. Then look for a card that offers rewards or benefits that you will find useful; also review whether an annual fee is charged.

How do I choose which card to use?

When you go to use your credit card, check to see which of your cards offers the most rewards for that type of purchase. If you have a card that offers a bonus rewards rate for those types of purchases, that could be a good one to use. Otherwise, use a credit card that offers a high rewards rate on all purchases.

Which credit card do most millionaires use?

It’s hard to say which credit card is most popular with millionaires, since that information is not generally considered public. However, it’s probably a safe bet that many millionaires might look for cards that offer a high level of benefits though they charge high annual fees. This might include The Platinum Card from American Express, the Chase Sapphire Reserve, or the Capital One Venture X card.

Photo credit: iStock/AscentXmedia

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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The credit card security code is generally found on the back of the credit card, close to or within the signature field. (There are a few exceptions, however; some American Express cards present the security code on the front of the card, separate from the main credit card number.)

In this article, you’ll learn the details you need about credit card security codes: not just where to find them, but also what they are, why they’re important, and tips for increasing your overall credit card security.

What Is a Credit Card Security Code?

A credit card security code is a numerical code, usually three or four digits long, that helps prevent fraudulent charges.

When you make a purchase that doesn’t involve physically presenting the credit card — for example, online — the point-of-sale system will usually prompt you to enter this security code.

Because the security code is not allowed to be stored by merchants, which helps protect against credit card hackers getting the information. Thus, the security code helps ensure fraudsters can’t use stolen credit card numbers to make digital purchases.

Other Common Names for Credit Card Security Codes

You may also hear the credit card code referred to as:

•   CVV, or Card Verification Value

•   CSC, or Card Security Code

•   CVC2, or Card Verification Code

•   CID, or Card Identification number

All of these terms signify that same three- or four-digit code on the back (or occasionally front) of your card.

When Do You Need Your Credit Card Security Code?

Your credit card security code is usually requested by the merchant whenever you’re making a credit card transaction without being physically present with the card.

The most common instance of this by far these days? That’s probably when you make an online purchase, but you may also make a credit card purchase over the phone and be asked to provide the security code.

Recommended: Understanding Purchase Interest Charges on Credit Cards

Why Credit Card Security Codes Are Important

Again, credit card security codes work to make your credit card information more secure — at least during purchases where you’re not physically present with the card. (When you are physically inserting, swiping, or tapping a credit card, other security features, such as the EMV chip, offer security measures.)

Where to Find Your Credit Card Security Code Number

Your credit card security code number is almost always on the back of your credit card, usually toward the right-hand side of the card beside or within the signature box. Some credit cards may list the credit card number on the back of the card, as well, but the security code is separate.

American Express cards list the security code on the front of the credit card, usually to the left of the card and always above the main credit card or account number.

Recommended: Guide to Checking Your Credit Card Approval Odds

How to Find Card Security Code Without the Card

The whole point of your credit card’s security code is to make the card impossible to use without being physically present. So, unfortunately, if you’ve lost your credit card, there’s no way to recover the code separately.

You may be able to ask the credit card issuer for a virtual version of the card, which will allow you to see the security code, or you may need to report the card lost or stolen and wait for a new card — with a new account number and security code — to arrive by mail.

Example of Credit Card Issuers That Use a Credit Card Security Code

These days, just about every major credit card issuer uses credit card security codes to help ensure the safety of their cardholders.

Discover, Visa, MasterCard, and American Express all use security codes — though as noted above, American Express cards are the only ones that list the code on the front of the card instead of the back.

Tips on Credit Card Security

Keeping your credit card information safe is the first step in preventing identity theft and fraudulent purchases. Fortunately, security measures like CVCs help make it easier, but here are some tips to help double your defenses.

•   Use secure passwords. These days, most people manage their credit cards (and many other types of financial accounts) online. Using secure passwords helps ensure fraudsters can’t hack into your online profiles to steal your information. Using a long password with a mix of numerical, alphabetical and special characters can help increase your level of security. If your credit card utilizes a PIN, change it often.

•   Be careful how you share credit card information. Though it may be safe to make a purchase through a legitimate, secure website or on an official company phone line, you should never email your credit card information or write it on a slip of paper for someone. If a merchant requests you to do so, shop elsewhere.

•   Sign up for alerts. Many credit card accounts can alert users by email, text message, or phone call when suspicious activity, like very high-priced purchases or transactions done at a different physical location than your home area, are made. Some cards may also automatically decline such transactions. (Don’t worry: if the charges are legit, you’ll be able to quickly verify them with the credit card company to get the transaction approved. It can also be helpful to let your credit card company know ahead of time if you’re planning to travel.)

The Takeaway

Want to know where the security code is on a credit card? Your credit card security code is located, in most cases, on the back of your card, close to or within the signature box. American Express cards list the security code on the front of the credit card. No matter where it is, the code helps keep your information safe when making transactions online or over the phone.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Is a credit card security code 3 or 4 digits?

Credit card security codes can actually be three or four digits long. Discover, Visa, and MasterCard all use three-digit codes that are printed on the back of the credit card, while American Express employs a four-digit code printed on the front of the card.

Is the security code the same as CVV?

Yes, the credit card security code is the same as the CVV, which stands for Card Verification Value. The code can also be known as a CSC (Card Security Code), CVC2 (Card Verification Code), or CID (Card Identification number).

Are all credit card security codes 3 digits?

Not necessarily. Credit card security codes can be three or four digits long, depending on what kind of card you have. The four- or three-digit code on a credit card is typically found on the back, but occasionally on the front.

Photo credit: iStock/Kantamard Lamasai

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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When it comes to picking a new credit card, there’s one detail you should not overlook: the card’s annual percentage rate, or APR. This represents the rate lenders charge to borrow, including fees and interest. But credit cards don’t have one single rate, and it may be hard to evaluate what’s a good deal and what isn’t.

In general, a good APR is one that’s below the current average interest rate, which is 21.47%, according to the latest data from the Federal Reserve at the start of 2024. However, what’s a good APR will also depend on the type of credit card, the various rates that could be assessed, and your own creditworthiness. This guide will take you through the details.

What Is an Annual Percentage Rate (APR)?

The APR on a credit card represents the total cost of the loan expressed in annual terms. A credit card’s APR includes the interest rate as well as any fees, including for late payments, foreign transactions, or returned payments.

Taking these fees into account when applying for a credit card helps to provide a fuller picture of what the loan may actually cost over its lifetime.

Keep in mind that APR is distinct from interest rate, which is simply the additional cost of borrowing money. Like APR, interest rate is typically expressed as a percentage of the principal. However, when looking at the average credit card interest rate vs. the average APR, you’re not comparing apples to apples.

For example, if a consumer takes out a $1,000 loan with a 10% simple interest rate and a one-year term, they will pay $1,100 over the lifetime of the loan — the principal $1,000 plus interest of $100.

While this example is extremely simplified, it’s helpful in demonstrating the difference between a simple interest rate and a not-so-simple APR calculation. If the consumer calculates the cost of the same $1,000 loan, considering the various fees that go into the APR, the number will likely be higher than the stated interest rate.

How Is APR Determined?

Knowing how APR is determined is an important part of understanding how credit cards work. A credit card’s APR is largely determined based on an individual’s financial specifics when they open the account.

•  The lender will look at the person’s credit score and credit history, as well as factors like their payment history and debt-to-income (DTI) ratio, which represents how much of an individual’s gross income is already going toward debt payments. In general, someone with a good payment history and credit score and a lower DTI ratio will qualify for a better APR.

•  However, APR isn’t only based on a borrower’s creditworthiness. Lenders will also take into account the current US prime rate, which is used to set rates on consumer loan products. Typically, a lender will take this rate and then bump it up a bit to minimize risk and increase profits.

•  Lastly, APR will vary based on the type of credit card. If you know what a credit card is, you’ll know all credit cards aren’t created equal. For instance, a credit card that offers lucrative rewards (like travel points or cash back) will generally have a higher APR than a more basic card.

When It Matters to Look at APR

If a consumer is comparing two similar loan or credit card offers, they may want to also look at the offer’s APR.

Let’s say a person has two loan offers. Each is a $1,000 loan with an interest rate of 10%. With just that information to compare the two, they seem equal to each other. A little more digging, though, will uncover that Offer A has a $100 origination fee while Offer B only has a $50 origination fee — both of which could be calculated and accounted for in the offer’s APR.

With credit cards, it could be that two cards have the same interest rate, but Card A has no late payment fees, while Card B carries a 20% late payment fee, making its APR potentially higher.

When it comes to APR, the devil really is in the details. And reading the fine print can reveal that the APR could make a difference to your credit card balance and debt management.

Types of Credit Card APR

To further complicate the answer to the question of what’s a good APR for a credit card, it’s important to understand that credit cards have different types of APR. The main one you’re probably going to want to consider when considering your total cost of borrowing is the purchase APR. However, if you’re planning to take out a cash advance or do a balance transfer, you’ll want to look at those APRs as well.

Introductory APR or Promotional APR

Sometimes, cards will offer a lower (or even 0%) APR to new customers for a limited time after they open the account. This APR can apply to purchases or to balance transfers. Introductory or promotional APRs must last at least six months, but they can be longer, too. Once this period is up, the regular APR kicks in.

Purchase APR

The purchase APR is the rate that applies when you use your credit card to make a purchase and then carry a balance into the next billing cycle, perhaps only making the credit card minimum payment. This is the most commonly discussed type of APR, and the main one you’ll want to look out for when comparing credit cards.

Cash Advance APR

A cash advance APR applies if you withdraw money from an ATM or bank using a credit card. Unlike your purchase APR, this APR doesn’t have a grace period, meaning interest starts accruing immediately. Additionally, cash advance APRs tend to be on the higher side.

Penalty APR

If you fail to make your payments on time, the penalty APR will kick in, driving up your card’s previous APR to one that’s often much higher. This is why it’s always important to make your credit card payments on-time — even if you’re in the midst of disputing a credit card charge, for instance.

Balance Transfer APR

A balance transfer APR will apply when you transfer any balances from other cards onto your credit card account. Often, this APR is comparable to the purchase APR, though this can vary depending on the credit card company.

How to Evaluate and Compare APRs

To get a sense of a credit card’s APR, follow these steps:

•  First take a look at a card’s purchase APR range, and compare that to other credit cards. For a fair comparison, make sure to look at the same type of credit card. (For example, only compare travel rewards cards to other travel rewards cards, or a credit-building card to another credit-building card.)

•  Then, get into the nitty-gritty and look at the APR for different types of transactions. Even one credit card can have varying APRs on different transactions. For example, a card may have a different APR on late payment penalties than it does for balance transfers or cash advances.

•  Evaluate each APR and compare those to any other offer you may have in front of you to ensure you pick the most competitive option. It’s a good idea to attempt to seek out the lowest rate possible for your financial situation. That way, you can feel confident using your credit card for what you need to use it for — which might include paying taxes with a credit card.

Low vs High APR Credit Cards

As you’re evaluating credit card APRs, it’s important to keep in mind that some credit cards tend to have higher APRs than others. For example, rewards credit cards generally have higher APRs, but provide value through perks, discounts, points, or other benefits.

On the other hand, many low-interest cards come with fewer perks. But again, these cards can save someone money in the long run if they need to carry a balance from, say, covering a large purchase at an establishment that accepts credit card payments.

Low-interest cards also tend to be reserved for those with higher than average credit scores, so they may be harder to qualify for with lower credit.

What Is a Good APR for a Credit Card?

According to the Federal Reserve, the U. national average credit card APR was 21.47% in December 2023. It’s reasonable to assume that an APR at or below the national average is considered “good.”

That said, qualifying for a “good” APR may hinge on a consumer’s credit score. For instance, someone with a below-average credit score may have a different definition of a good APR for a credit card compared to someone whose score is excellent.

APR and interest rates also change alongside federal interest rates changes. Because of this, it’s important for consumers to find the most recent data available on average credit card APR to ensure they aren’t relying on out-of-date information to inform their decision.

How to Avoid Paying APR

The APR a person qualifies for typically depends on their individual credit score. This means that those with credit scores on the higher end of the scale might qualify for lower APRs. If a consumer has a lower credit score, that doesn’t mean they’re totally out of luck, but they might be offered the same card at a higher APR.

However, there are a few ways a person can improve their chances of qualifying for a lower APR, and that starts by doing the work to build one’s credit score.

Tips for Qualifying for a Better APR

The APR a person qualifies for typically depends on their individual credit score. This means that those with credit scores on the higher end of the scale might qualify for lower APRs. If a consumer has a lower credit score, that doesn’t mean they’re totally out of luck, but they might be offered the same card at a higher APR.

However, there are a few ways a person can improve their chances of qualifying for a lower APR, and that starts by doing the work to improve their credit score.

•  One step is to check your credit report regularly for accuracy. US federal law allows consumers to get one free credit report annually from each of the three credit reporting agencies. Look out for any incorrect or suspicious charges. Even if you’d thought you’d resolved an issue related to a credit card skimmer, for instance, you’ll want to make sure those charges aren’t affecting your credit report in any way.

•  You can build your personal credit scores by making debt payments on time and trying to use only 30% of your available credit limit at any given time. Payment history accounts for 35% of the total credit score, and credit utilization — how much of a person’s total credit is being used at a given time — accounts for 30% of the total credit score.

Rebuilding a poor credit score can take some time, but it’s worth the work.

The Takeaway

Currently, the average credit card APR is 21.47%, and anything below that could be considered a good rate. However, when it comes to what is a good APR for a credit card, the answer is that it depends on a variety of factors. It will also depend on your credit scores and history as well as what type of credit cards and rewards you’re looking for. When you do get a credit card, it’s important to use it wisely so that you don’t wind up getting charged higher penalty rates.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

What is a bad APR rate?

A bad APR for a credit card is generally one that’s well above the current national average credit card rate. APR for a credit card can vary widely, with some offering APRs as high as a whopping 36%.

What APR will I get with a 700 credit score?

A credit score of 700 is considered in the good range. It’s likely you could qualify for an APR around the average, though of course this will also depend on other factors, including the type of card and the current prime rate.

Does the interest rate on my credit card change?

Your credit card company can increase your interest rate. However, they are not permitted to do so within the first year of opening the account. Additionally, they must give you notice at least 45 days in advance.

What other financial products have an APR?

Many different types of lending products have APR. Beyond credit cards, this can include mortgages, car loans, and personal loans.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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