Average Credit Card Interest Rates and Stats: Complete Guide to Credit Card APR

Credit cards can be a potent financial tool when used well. They allow users to build credit, earn points, and open doors for vacations and rewards that would not be possible without them. However, credit cards also have fees and interest, and if you’re like 47% of credit cardholders¹, you will probably carry a balance at some point.

The annual percentage rate, or APR, is the annual interest rate consumers must pay for unpaid portions of their monthly credit card bills. It is the price credit card users pay to borrow money from credit card issuers, usually much higher than other forms of borrowing money, like an automobile loan or personal loan.

Knowing your credit card’s APR and ensuring you have the lowest APR is incredibly important. Despite that, almost half of Americans (47%) don’t know their credit card’s annual APR.² 

While no credit card APR is necessarily “good” for the consumer, they vary among cards and users. With APR being affected by several factors, including credit card type, credit score, and available promotions, it’s important to research and get a reasonable rate.

Quick Facts and Stats

• The average APR for credit cards was 23.37% in August 2024.³ This is up from 21.47% in the final quarter of 2023.
• The average APR for rewards cards is 20.91% to 28.15%.⁴
• A typical penalty APR is 29.99%.⁵
• The average new card APR for subprime credit cards has fallen since before the pandemic — 22% in March 2024⁴, compared to 25.37% in February 2020.
• While APRs steadily increased since 2014, the pandemic brought lower interest rates in 2020. This changed in 2022 when the Federal Reserve raised rates to the highest level in 22 years. Although Federal Reserve rates dropped slightly in 2024, credit card APRs have remained high.
• In October 2024, American credit card debt was more than $1.373 trillion.³ This is the most ever carried over.
• In 2024, Alaskans had the most average debt per card. Residents there held a balance of $7,316 at the end of 2024.⁶
• Wisconsin had the lowest average balance, $4,940.⁶ 
• According to the Fed, 8.8% of credit card balances were delinquent (and thus accruing interest) in Q3 2024, slightly better than the 9.1% delinquency rate in the previous quarter.⁷

Why Your Credit Card’s APR Matters

Even if you plan on paying off your credit card in full each month and never carrying a balance, life happens! Being aware of your card’s APR details is important so you can minimize your interest costs.

To start, your purchase APR is the standard APR that applies when you make purchases. This purchase APR can be either fixed or variable:

• Fixed APR is locked in when you sign up for your credit card and doesn’t change except under specific circumstances, such as making a late payment (which triggers your penalty APR). Fixed APRs are rare.
• Variable APR is more common. This APR can change over time and is usually based on a benchmark rate (for example, the prime rate plus 3.5%). When the prime rate increases or decreases, your credit card’s APR changes as well.

Either way, interest payments can be small in the short term, but over the long run can add up to significant fees and make it harder to pay down your card.

For example, if you have a $1,000 balance on your card that you pay over 6 months, you spend $9 more in interest with a 4% higher APR:

• $43 in interest if your card has a 20.49% APR (the low-end APR if you have an “excellent” credit score)
• $52 in interest if your card has a 24.99% APR (the median APR if you have a “fair” credit score)

This adds up much more quickly if you have a higher balance or take longer to pay off the balance. The interest on a $10,000 balance that takes you 3 years to pay off is $748 more with a higher APR:

• $3,199 in interest if your card has a 20.49% APR (the median APR if you have an “excellent” credit score)
• $3,947 in interest if your card has a 24.99% APR (the median APR if you have a “fair” credit score)

This shows that it’s always best to be aware of your credit card’s APR and try to get the lowest rate your issuer offers.

Where Do I Find My Card’s APR?

So, where do you find your credit card’s APR? There are a couple of ways.

• Monthly statement: There will be a section of the statement marked “Interest Charge Calculation” or a similarly worded section near the end of your credit card’s monthly statement.
• Credit card terms and conditions: These are in the Schumer box within your card’s terms and conditions. Even if you didn’t keep your original paperwork, you can normally find it online by searching for your specific card.

Hot Tip:

The Schumer box, also known as the summary box or transparency box, is named after U.S. Sen. Chuck Schumer of New York, who authored the legislation requiring it.

Average APR in the United States

If you haven’t sought out or received a credit card offer in some time, you may have an antiquated understanding of the average credit card APR. To find out whether you’re getting a reasonable APR, we turn to the average APR in the U.S. Over time, credit card interest rates ebb and flow, so it’s important to have a pulse on what the average APR looks like today.

Below is the average APR in the U.S. over the past few years, according to the Federal Reserve:

In 2016, the nation’s average APR was 12.35%. In 2020, the average APR in the U.S. rose to 14.71%. That is more than a 2% net increase over 5 years. Interestingly, the average APR in 2020 was slightly lower than in 2019, when it reached 15.05%. Rates have steadily increased from those historic lows following the Fed’s interest rate hikes. Currently, the average APR is 21.76%⁷ in 2024.

However, this doesn’t mean that you’re locked into that credit card interest rate if you apply for a card today. Every individual receives a unique APR based on several factors, including the card type and credit score.

Let’s dive into some of these contributing factors, starting with the type of card you want.

Average APR by Credit Card Type

The type of credit card you want to qualify for affects the APR you’re offered. The amount you can expect to pay on average in APRs for your card type is as follows:⁶

With APR sitting at a similar level across almost all cards, it’s more important than ever to think about choosing one whose perks are right for your spending needs. The exception is low-interest credit cards — although it’s important to remember these often carry a smaller total budget, with little to no extra perks. 

How does your credit card compare? If your APR is significantly higher than these averages, it might be a good time to call your card’s issuer to negotiate a lower APR.

Average APR by Credit Score

Speaking of bad credit, the most important metric to consider is your credit score. In fact, card issuers rely heavily on your credit report and credit score when evaluating your risk level and assigning an APR to your credit card offer accordingly. Building up a good credit score helps you secure an APR on the lower end of the range for the card you are considering.

Credit score ranges as defined above are based on FICO’s credit score ranges:

• Excellent: 741 to 850
• Good: 670 to 740
• Fair: 580 to 669
• Bad or no credit: 350 to 579

Here is a look at an average breakdown of what APR you can expect to receive, depending on which credit bracket you fall into:

• Excellent: 20.49% to 27.99% (average APR)
• Good: 19.49% to 28.62%
• Fair: 24.99% to 29.99%
• Bad or no Credit: 26.62%

The outlier here appears to be the bad or no credit field, but remember that most cards offered for people who fall within these credit score ranges are secured cards and cards with much lower credit limits. Both of these reduce the risk to the issuer. So, while you might get a better rate than someone in the “Fair” bracket, the chances of being approved for a “regular” credit card are also significantly lower. 

Although rates are increasing overall, improving your credit score can help you qualify for the best cards.

Average Credit Card Interest Rates by Issuer

Each issuer sets the APRs for its credit card products. The issuers all have a slightly different, risk-based pricing policy that guides the range of interest rates they advertise and offer to customers.

• American Express: 20.49% to 29.49% (average APR) 
• Bank of America: 18.74% to 28.74%
• Barclays: 20.74% to 29.99%
• Capital One: 19.99% to 29.99%
• Chase: 20.99% to 28.49%
• Citi: 20.12% to 28.87%
• Discover: 18.49% to 27.49%
• Synchrony Bank: 20.24% to 26.99%
• U.S. Bank: 18.74% to 28.37%
• Wells Fargo: 16.24% to 25.49%

Source: Investopedia

For example, Discover and Wells Fargo offer cards with much lower APRs than their competitors — both in the lowest APRs and the median APR across all cards. Barclays Bank, Capital One, and American Express have a higher median than competitors. These issuers also have cards with the highest APRs offered, right around 30%.

Bottom Line:

Issuer average APRs also tend to factor in credit score, since some cards are only available to those with good or excellent credit. 

Types of Credit Card Interest Rates

Promotional Rates

Another way to score a low APR is to look for cards that offer promotional rates. These come in various forms, such as 0% interest for an introductory time period or a zero-dollar balance transfer fee. While promotional rates can absolutely help you secure lower interest rates, debt.org cautions that they are liable to decrease your credit score because they offer increased risk to credit issuers.

If you go for a promotional rate, it’s always best to read the fine print. There will likely be conditions and exclusions to be aware of. You might owe interest on missed payments during the promotional period or immediately owe interest on any balance you carry when the promotional period ends.

What happens when the promotional rate ends? It’s important to know whether you are on a variable or fixed-rate plan and the differences between them.

Variable Rates

Variable rates are variable, just as the name implies. Credit issuers can change them at any time without warning the cardholder. The rate depends on a few factors.

The issuer considers several variables, like the Federal Reserve discount rate, interest on U.S. Treasury bills, or the prime rate, which is published by the Wall Street Journal. Then they add a margin of percentage points (more for users with bad credit) to develop an APR.

For example, the prime rate was 7.5% in December 2024 and remains so as of publication in January 2025. According to debt.org, a card company might add 10 to 12 percentage points for those with good credit and 23 to 26 percentage points for bad credit. That means, depending on your credit, your variable APR would be between 17.5% and 33.5%.

The current prime rate has changed 3 times since July 2023. The lowest rate the U.S. has had since 2008 was from March 2020 to March 2022, when it was just 3.25%. That’s an increase of 425 basis points between then and now. 

Fixed Rates

Fixed rates, then, are the opposite. Consumers with fixed-rate plans are locked into interest rates unless the card issuer gives a 45-day notice. The cardholder can then opt out of the plan or continue at the newer rate. There are, of course, certain situations where a fixed rate could change, including:

• Being more than 60 days late with a payment
• Completing a debt management program
• Ending a promotional fixed rate

Types of APR

There are several types of APR. Knowing how each factors into different ways to use a credit card can help you manage your interest effectively. Here are the most important APR types to be aware of, according to the Bank of America:¹⁴

Introductory APR

As discussed above, an introductory APR is synonymous with a promotional APR. Whether you are getting a balance transfer deal or a lower interest rate, an introductory APR typically lasts for a specified amount of time before the purchase APR takes its place.

Purchase APR

This standard APR is applied to all purchases you make with the card. It is typically the rate advertised when you apply or are offered a plan from a card issuer.

Penalty APR

Fail to make the minimum payment on time and you’ll be charged a penalty APR, a rate even higher than your card’s default. Per the Credit Card Accountability, Responsibility, and Disclosure Act of 2009, credit card issuers can raise your APR if you are more than 60 days late on payments during the first year of your account. A typical penalty APR is 29.99%.⁵

Cash Advance APR

Card issuers often charge a different, higher interest rate when you borrow cash using your credit card. There are no grace periods for this.

Hot Tip:

Don’t confuse APR with APY (annual percentage yield). 

How To Reduce Your APR

If you already have a credit card with an issuer and hope to get them to lower your existing APR, you can do a few things to renegotiate a lower rate. Contact your credit card issuer directly and ask if they’d be willing to negotiate a lower APR.

Here are things to do to increase your chances of convincing them:

• Show a positive payment history: Point out your track record of making on-time payments. If you’re a trustworthy borrower, lenders are more likely to give you a lower APR (in addition to other benefits, like a bigger credit limit).
• Show a change in credit score: Maybe you started with good credit but now have excellent credit. This is a reason for an issuer to offer you a lower rate. Just be aware that, to confirm your higher credit score, the issuer may need to run a credit check on you again!
• Be aware of competitor offers: Know what the competition offers and use it to your advantage. Let your credit card company know you’re searching for the best rate and be armed with the correct information.

If you’re in the market for a new credit card, the best thing you can do is ensure your credit score is as high as possible. To do this, be sure to:

• Monitor your credit report: Check your credit reports regularly to ensure you’re accurately scored. You can check your credit reports from each major credit bureau (Equifax, Experian, and TransUnion) for free through AnnualCreditReport.com.
• Keep debt balances low: Issuers want to know that you’re not overextending yourself. Lenders look at the amount of credit you’re using and compare it to how much credit you’ve been given (also known as your credit utilization). Typically, lower is better, but in general, keep it below 30%.
• Show an impressive credit history: Lenders like to see that you have a long history with different types of credit, including revolving credit and installment loans. This means the average length of your credit history and the types of loans you’ve handled (known as your credit mix) are significant to lenders.

Final Thoughts

A great deal goes into deciding your personal credit card interest rate, from your credit score to the type of APR applied to the type of credit card you want. Understand the nuances of credit card interest before jumping into the first offer in your mailbox. Otherwise, you could be in for a rude awakening when your introductory rate expires and you suddenly owe 29.99% on that late payment.

If your card’s interest rate is higher than expected, try to negotiate a lower rate with your issuer. It’s also important to be aware of other APRs if you need to transfer a balance, miss a payment, or take advantage of an introductory offer on your card.

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References

¹ Board of Governors of the Federal Reserve System. (2024, May 29). Report on the Economic Well-Being of U.S. Households in 2023 – May 2024. https://www.federalreserve.gov/publications/2024-economic-well-being-of-us-households-in-2023-banking-credit.htm.
² LendingClub. (2024, August 13). Nearly 50% of Americans Unaware Federal Interest Rate Hikes Raised Their Credit Card APR by Over 5 Percentage Points. https://ir.lendingclub.com/news/news-details/2024/Nearly-50-of-Americans-Unaware-Federal-Interest-Rate-Hikes-Raised-Their-Credit-Card-APR-by-Over-5-Percentage-Points/default.aspx#:~:text=LendingClub’s%20recent%20research%20on%20personal,APR%20on%20their%20credit%20cards..
³ Board of Governors of the Federal Reserve System. (2024, December 6). Consumer Credit – G.19. https://www.federalreserve.gov/releases/g19/current/.
⁴ Li Cain, Sarah. SoFi. (2024, March 15). Average Credit Card Interest Rates: Updated for 2024. https://www.sofi.com/learn/content/average-credit-card-interest-rate/.
⁵ Bridge, Barry. Bankrate. (2024, March 12). What Is Penalty APR? + How to Avoid It. https://www.bankrate.com/credit-cards/zero-interest/what-is-penalty-apr/
⁶ Thangavelu, Poonkulali. Bankrate. (2024, March 25). U.S. states unequally burdened by credit card debt. https://www.bankrate.com/credit-cards/news/states-debt-burden/
7 Center for Microeconomic data. (2024, November). Quarterly Report on Household Debt and Credit. https://www.newyorkfed.org/medialibrary/Interactives/householdcredit/data/pdf/HHDC_2024Q3.pdf?sc_lang=en