We all know that low interest rates can be an attractive feature when comparing credit cards. But it isn’t always possible to get extremely low rates alongside other features you want or need. So where do you draw the line? When do interest rates go from being reasonable to being too high and a bad deal?

Let’s take a look at what sets reasonable interest rates apart from high interest rates, and a situation where credit card interest can be completely irrelevant.

What Constitutes a “High” Interest Rate?

Unfortunately there’s no easy number to separate high interest rates from low ones. There will always be a middle ground, and those classifications will always be done on an individual basis. For example, on our site right now the low interest credit cards have rates up to 13.49%.

You might consider 16.99% acceptable before rates appear to be too high. Or you might only be satisfied with interest rates of 11.99% or less.

There are also extremely low rates available, often as introductory offers. Some cards even offer 0% interest for your first few months — such as the Citibank Clear Platinum credit card. What it really comes down to is how much you’re personally willing to pay if you should decide to finance purchases beyond what you can afford with cash on-hand.

When Interest Rates Don’t Matter

For some consumers interest rates don’t matter at all. In this case, it doesn’t matter if you go with that 16.99% APR card or one offering 0% interest for six months. That’s because you wouldn’t pay any interest, regardless of the rate advertised.

How does this work?

This is the situation when you have a card offering interest free days and you pay off your balance in full every month. You get interest free days on new purchases until the next payment due date. If you pay your whole balance off, there is no balance left over to accumulate interest charges.

Just keep in mind that most cards require the previous month’s balance to be paid in full by the date on your statement. If it isn’t, you won’t get any interest free days on new charges in the current month and you’ll be subjected to whatever interest rate the card charges.

So how high is “too high” when it comes to credit card interest rates? In the end, that’s up to you. You’re the one who has to pay the interest charges. If it doesn’t seem like a fair deal for the things you want to finance, then it’s a good idea to seek lower interest options (or save until you can afford the purchase without credit).