Why is American Express (Amex) APR so high? / What is an American Express (Amex) APR?

10 Mar 2023

What is an American Express (Amex) APR?

The Annual Percentage Rate (APR) for an American Express credit card is the interest rate that a cardholder will be charged on their outstanding balance. The APR is expressed as a percentage of the balance and is typically charged annually, but can be charged daily or monthly depending on the specific card terms.

The Annual Percentage Rate (APR) for American Express credit cards varies depending on the specific card and the applicant's creditworthiness. American Express typically offers a range of APRs for its credit card products.

For example, the APR for the American Express Green Card can range from 15.24% to 22.24%, while the APR for the American Express Gold Card can range from 15.24% to 22.24%.

The APR is an important factor to consider when using a credit card because it affects the cost of borrowing money. It's important to note that credit card APRs are typically variable, meaning they can change based on market conditions or other factors.

It's important for cardholders to always review the terms and conditions of their specific credit card to understand the APRs and how they are calculated. Additionally, it's important to always pay off credit card balances in full each month to avoid paying interest charges.

Why is American Express (Amex) APR so high?

The main reason for the high cost of Amex cards is that many American Express credit cards offer generous rewards rates and high-end perks, which justify the high annual fees. Amex cards aim at people with good credit and high incomes who are likely to charge large sums to their cards every month.

The most common reason people apply for a credit card is that it offers a low annual percentage rate on purchases, also known as the APR. While credit cards typically have multiple APRs - one for purchases and others for cash advances, balance transfers, and introductory rates - most people are concerned with the purchase APR.

If your Amex APR goes up, there are several things you may want to do:

• Pay the balance in full. If you don't carry a balance from month to month, the APR on your credit card becomes meaningless.

• Negotiate with your card issuer. It is sometimes as simple as calling your credit card company and requesting a lower interest rate. They may consider your request only if you pay your bills on time and do not carry a large outstanding balance from month to month.

• Apply for a new card and transfer your balance. If you can find a low-interest balance transfer credit card, you can transfer the balance from an existing high-interest card to a new lower-interest card or a temporary 0% APR credit card for a small fee.

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