- Average Credit Card Interest Rate By Credit Score
- Personal Loans Vs. Credit Cards: What’s The Difference?
- How To Find The Interest Rate On A Credit Card
Average Credit Card Interest Rate By Credit Score – Many of the offers appearing on this site are from advertisers who receive compensation for being listed on this website. This remedy may affect how and where products appear on this site (including, for example, the order in which they appear). These offers do not represent all available deposit, investment, loan or credit products.
The annual percentage rate on your credit card determines the amount of interest you charge on outstanding balances each year. Although it’s best to pay off your balances in full and not pay interest, it’s very common to carry a credit card balance.
Average Credit Card Interest Rate By Credit Score
Before going further into which credit cards have the best interest rates, you should know the average current credit card rates and the factors that affect them. When you compare credit cards, even the best rewards credit card you can find isn’t worth it if you have to pay a high interest rate.
Personal Loans Vs. Credit Cards: What’s The Difference?
The average credit card APR varies significantly depending on the type of credit card in question. For example, the average credit card APR for low-interest credit cards is 12.80 percent, while the average APR for instant-approval credit cards is 16.50 percent.
On a broader scale, the average credit card interest rate on all accounts is slightly above 13 percent, according to the Federal Reserve, with the current average APR at 14.87 percent, according to the latest data from August 2017.
Average credit card interest rates for some of the most common credit card types fall between 11 and 17 percent. You can find the lowest credit card rates on student credit cards, low-APR credit cards, and balance transfer credit cards. The highest APR credit cards are instant approval credit cards, business credit cards, and bad-credit or subprime credit cards.
Check out the credit card information below to compare interest rates and see which credit card makes sense for you.
Average Credit Card Interest Rate (apr)
To give you an idea of how credit card interest rates have fluctuated over the past 20 years, you can look at the U.S. Understand how the economy works. U.S. During the normal business cycle of the economy, the stock market rises and falls, interest rates rise and fall, and credit card APRs follow suit.
As of January 1997, the average credit card APR was 15.82 percent. That rate reached its 20-year high of 15.92 percent in July 1997. Rates have since rebounded, reaching a 20-year low of 12.10 percent in January 2009. Average APR as of end of January 2017. 14.26 percent.
Many factors determine how banks determine credit card interest rates. One influential factor is the federal funds rate, which affects many interest rate trends, including credit card APRs. In June 2017, credit card interest rates rose as the Federal Reserve raised interest rates by 0.25 percent.
Multiple factors affect credit card rates above the Fed. For example, the type of APR also affects your credit card rate. U.S. Variable credit card APRs change depending on an index they refer to, such as the prime rate; So your credit card interest rate fluctuates as the prime rate rises and falls. On the other hand, non-variable credit card APRs are not dependent on a reference rate and are more stable.
Credit Card Interest Rates Are At A Record High. How High An Apr Should You Accept?
Your credit card APR can also vary depending on what you do with the card. Your credit card issuer may charge a certain APR for balance transfers and another rate for standard purchases. Some cards offer promotional rates that start low but increase dramatically after the credit card offers expire.
When it comes to the best credit card rates, no one size fits all. Depending on your financial situation and lifestyle, one type of credit card and one particular credit card APR may make more sense than another credit card. Assess your own financial needs before deciding which credit card and APR are right for your life.
Subscribe for just $12 for your first year and receive a free gift. Membership gives you access to discounts, programs and services from many trusted brands.
All 750k Masterworks members are asking themselves after this art investing platform achieved 100% positive net returns in 14 exits.
The Real Cost Of Credit Card Interest Rates
Get advice on achieving your financial goals and stay up-to-date with the top financial stories of the day.
Matt has been covering the personal finance space for over a decade. He is a nationally recognized expert in credit cards, “buy now, pay later” loans, personal loans, credit scoring and reporting, small business loans and other aspects of personal finance. He has appeared on Good Morning America, NBC Nightly News, The Wall Street Journal, The New York Times and the U.S. and has been quoted or featured in hundreds of other media outlets around the world. He is a graduate of the University of Texas and lives in Austin with his wife and son.
Dan Shepherd is managing editor of Studies and Surveys. A team of studies and surveys creates accurate and concise data-driven content that informs and explains the financial lives of Americans.
Don’t Feel Pressured To Open A Store Credit Card
Prior to joining, Dan worked as a copy editor for Student Loan Hero. The longtime journalist has also worked for the Schenectady (N.Y.) Daily Gazette, Bleacher Report, Philly.com, the Philadelphia Daily News, the Arkansas Democrat-Gazette and the Utica (N.Y.) Observer-Dispatch.
We are committed to providing accurate content that helps you make informed money decisions. The content on this page has not been reviewed, endorsed or approved by any credit card issuer. We maintain partnerships with certain issuers and our Site may receive compensation through those partnerships. Read our editorial guidelines at We’re committed to providing accurate and actionable content that helps you make informed decisions about your money. Our team of writers and editors follow these key guidelines: We thoroughly check and review all content for accuracy. We aim to correct any errors as soon as we become aware of them. Our partners do not commission or endorse our content. Our partners do not pay us to feature any particular product in our content, but we do feature certain products and offers from companies that are compensated. This may affect how and where offers appear on the Site (such as ordering).We review and interview external and internal reputable sources for our content and disclose the sourcing of our content. Close the editorial guidelines here.
The average credit card interest rate in America today is 24.45% — the highest since tracking monthly rates began in 2019.
Each month, it reviews the 200 most popular credit cards in the U.S. — from more than 50 issuers — for a comprehensive look at the state of credit card interest rates. We publish our findings here.
How To Find The Interest Rate On A Credit Card
The September hike comes on the heels of the Federal Reserve raising rates at its July 25 and 26 meetings. It raised rates by a quarter of a percentage point at the meeting on June 13 and 14, a month after deciding not to raise rates. The Fed’s next move is unclear. It may raise rates again at its September 19 and 20 meeting — and perhaps another time or two before the end of the year — but it’s not certain. (In all, the Fed has raised rates 11 times since the start of 2022 — seven times in 2022 and four times so far in 2023.)
Important: Most credit card issuers do not offer one rate for everyone. Issuers offer a range of possible rates based on whether you have good or bad credit. The better your credit, the lower the rate you can usually expect. This is not guaranteed as the issuer will consider various factors when approving you for a new card account.
If you have really good credit now, the average APR you’ll be offered is 21.03%. If you have really bad credit, the average APR offered is 27.86%. That’s a big difference.
The good news is that the average FICO score for Americans in 2022 is 714, according to Experian — the same as in 2021. That means more Americans are likely to qualify for a lower interest rate. For those who don’t, things get expensive in a hurry.
How To Lower Your Credit Card Interest Rate
That’s $590 in interest and a three-month savings in payoff time. In normal times, the financial margin for error for most Americans is so small that it’s a big deal. However, these are not ordinary times, so those savings are even more significant.
The type of card you shop for can also make a difference in what the APR can expect. For example, we found that cash back cards and 0% balance transfer cards have lower APRs than travel rewards cards. (This is true even if you exclude the 0% offer.) Meanwhile, secured credit cards — which require a deposit.
Car interest rate by credit score, average personal loan interest rate by credit score, average mortgage interest rate by credit score, average car loan interest rate for 800 credit score, average auto loan interest rate by credit score, average car loan interest rate by credit score, interest rate by credit score, average mortgage interest rate, average credit card interest rate, average used car loan interest rate by credit score, average interest rate, credit score and interest rate