May 20, 2024
Fact checked
Written by Adam McCann
WalletHub Financial Writer
Fact Checked by Alina Comoreanu
WalletHub Senior Researcher
Average Credit Card Interest Rates:
The average credit card interest rate is 22.93% for new offers and 21.59% for existing accounts, according to WalletHub’s Credit Card Landscape Report. The average interest rate among new credit card offers has increased by nearly two percentage points since 2010.
Table of Contents
Average Credit Card Interest Rates by CategoryAverage Credit Card APRs Over TimeAverage Credit Card Interest Rates by Major IssuersAverage 0% Intro APR Length Over TimeAverage Cash Advance and Penalty APRs4 Tips for Getting a Better Credit Card APR
Average Credit Card Interest Rates by Category
| Category | Latest Average | Q1 2024 | Q4 2023 | Lowest Level |
|---|---|---|---|---|
| All Existing Accounts | 21.59% | 21.59% | 21.47% | 11.82% (Q3 2014) |
| All New Offers | 22.93% | 22.89% | 22.90% | 16.60% (Q1 2011) |
| Excellent Credit | 18.05% | 18.04% | 18.01% | 12.43% (Q3 2010) |
| Good Credit | 24.12% | 24.12% | 24.10% | 16.07% (Q3 2010) |
| Fair Credit | 26.71% | 26.41% | 26.59% | 19.18% (Q3 2012) |
| Store Cards | 30.23% | 30.16% | 30.00% | 22.21% (2011) |
| Secured Cards | 22.78% | 22.83% | 22.86% | 16.63% (Q4 2020) |
| Student Cards | 19.73% | 19.73% | 19.67% | 15.00% (Q2 2020) |
| Business Cards | 22.16% | 22.15% | 22.13% | 15.11% (Q2 2012) |
Note: The latest averages shown reflect regular APRs for new credit card offers in May 2024, except for the average for all existing accounts, which is from February 2024 due to data limitations. The lowest level for all categories is from 2010 onward.
The main takeaway from this list is that the better your credit score is, the lower you can expect your credit card interest rate to be. And the vast majority of us have some room for credit improvement. You also get a sense for how average credit card interest rates fluctuate over time.
Below, you can take an even closer look at how APRs for existing accounts and new offers have changed in recent years. On that note, it’s important to point out that we will use “interest rate” and “APR” interchangeably in this article. APR, or Annual Percentage Rate, technically describes how much interest a balance will accrue over the course of a year. But interest is assessed daily, so a credit card’s interest rate is its APR divided by 365 (days in a year).
Average Credit Card APRs Over Time
Average Credit Card Interest Rates by Major Issuers
(Source: WalletHub analysis of Terms of Credit Card Plans Survey, CFPB as of July 2023)
Average Intro Rates, Penalty Rate & Cash Advance Rate
The average rates discussed above are so-called regular APRs. They apply to purchases and balance transfers under normal circ*mstances. But there are several other kinds of interest rates you should be aware of.
Here are the other average credit card interest rates:
- Purchase Intro APR: 0% for 11 months – Usually 0%, this promotional rate lasts for a limited amount of time before the regular APR kicks in.
- Balance Transfer Intro APR: 0% for 13 months – Usually 0% and sometimes offered for the same length of time as the purchase intro APR, this promo rate applies to balances transferred from another credit card or loan.
- Penalty APR: 27.35% – You’ll only see this interest rate if you fail to make your minimum payments.
- Cash Advance APR: 24.89% – You can use your credit card like a debit card to get money from an ATM. But interest will start accruing immediately, and you’ll be hit with a hefty fee.
Average 0% Intro APR Length Over Time
Average Cash Advance and Penalty APRs
4 Tips for Getting a Better Credit Card APR
- Improve your credit. A better credit score can lead to much lower interest rates as well as higher odds of approval for 0% credit cards. WalletHub’s personalized credit analysis will tell you exactly what you need to do.
- Comparison shop. It’s very easy to compare credit cards based on their regular and introductory interest rates, among other things. And if you know what your credit score is, you’ll have a sense of what rate you deserve.
- Take advantage of 0% offers. Applying for a 0% credit card before making a big purchase that will take you months to pay off can save you a bundle. The same is true of transferring a balance with a high rate to a 0% balance transfer credit card. You just have to make a plan for repaying what you owe by the end of the 0% period. A credit card calculator can help with that.
- Separate debt from everyday spending. Trying to use one credit card for everything isn’t the best idea. Don’t make purchases you can afford to pay in full by the due date with a credit card that you’re also using to carry a balance from month to month. That’s because those everyday purchases will accrue interest right along with your ongoing balance. But if you get another credit card solely for such everyday spending, interest won’t apply to it, as long as you pay your bill in full every month.
In conclusion, average credit card interest rates are a good tool to use when considering your credit card options. But it’s important to remember that the best credit card APR is one you never need to worry about. And you can get such a worry-free rate by always paying your bill in full. If you do that, your card’s APR won’t be a factor and you can focus on minimizing fees as well as maximizing rewards when picking a card.
If you’d like some even more in-depth statistical data about average credit card interest rates, WalletHub’s Credit Card Landscape Report has everything you’re looking for.
Average Credit Card Interest Rates FAQ(12 questions)
Editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. Please keep in mind that it is not a financial institution’s responsibility to ensure all posts and questions are answered.In addition, WalletHub independently collected information for some of the cards on this page.
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31
Upvotes
What is considered a low credit card interest rate?
Reply
31
Ryan P Page, Staff Writer
@ryan_page
A credit card interest rate below 14% is considered low because it is less than what credit cards for people with excellent credit traditionally charge. You are unlikely to find a major credit card with a regular APR below 10%, unfortunately, but you could qualify for a long 0% promotion.
If you have fair or bad credit, your interest rate will likely be significantly higher than the average rate. As a result, the best approach is to pay your bill in full every month and avoid interest entirely.
If you have good or excellent credit, the best way to get a low interest rate on a credit card is to apply for a 0% intro APR credit card. Although the intro rate isn't permanent, the average 0% introductory rate on purchases currently lasts for 11 months. Having that amount of time to make payments interest-free will save you money and help you manage your credit card debt.
Best 0% Intro Interest Rate Credit Cards of 2024
Excellent Credit:BankAmericard® credit cardBankAmericard® credit cardLearn MoreLearn More- Good Credit:Wells Fargo Reflect® CardWells Fargo Reflect® CardLearn MoreLearn Moreon issuer's website
- Fair Credit:Citi Double Cash® CardCiti Double Cash® CardLearn MoreLearn Moreon issuer's website
- Student Credit Card:BankAmericard® credit card for StudentsBankAmericard® credit card for StudentsLearn MoreLearn More
A credit card with a low interest rate can make it cheaper to carry a balance from month to month, and having a 0% intro APR is great for financing larger purchases. However, the only way to maintain an interest rate of 0% indefinitely is to pay your credit card balance in full each month. You won't be charged interest on new purchases if you always pay in full by the due date, provided your card has a grace period, which most credit cards offer.
You can check out WalletHub's guide on credit card interest rates to learn more, and make sure you check out the best credit card interest rates while you're looking for a lower APR.
21
Upvotes
What are the best 0% APR travel credit cards?
Reply
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1
Kendall Morris, Credit Cards Moderator
@kendallmorris
One of the best 0% APRtravel credit cardsis the Chase Freedom Unlimited® card. It offers an intro APR of 0% for 15 months on both new purchases and balance transfers, and it rewards you with 1.5 - 5% cash back on purchases – including 5% back on travel booked through Chase.
Some of the Best 0% APR Travel Credit Cards in 2024
- Chase Freedom Unlimited®
Purchase Intro APR: 0% for 15 months
Transfer Intro APR: 0% for 15 months
Regular APR: 20.49% - 29.24% (V)
Balance Transfer Fee: Either $5 or 3% of the amount of each transfer, whichever is greater in the first 60 days (5%, min $5 after)
Initial Bonus: N/A
Ongoing Rewards: 5% cash back on travel through Chase, 3% back at restaurants and drugstores, and 1.5% back on all other purchases (plus an additional 1.5% cash back on everything, up to $20,000 spent the first year)
See AlsoExpect Higher Interest Rates Through the End of 2024. Fed Blames 'Lack of Progress' on InflationHow far will CD rates fall if the Fed cuts rates? Here's what experts sayWhy mortgage rates are unlikely to fall drastically over coming yearsCD account interest forecast for spring 2024: Here's what experts predictAnnual Fee: $0
Minimum Credit Required: Good
- Wells Fargo Autograph℠ Card
Purchase Intro APR: 0% for 12 months from account opening
Transfer Intro APR: Not Offered
Regular APR: 20.24% - 29.99% Variable
Balance Transfer Fee: 3% intro for 120 days, then up to 5% (min $5)
Initial Bonus: 20,000 points for spending $1,000 in the first 3 months
Ongoing Rewards: 3 points per $1 spent on restaurant, travel, gas, transit, streaming services and phone plans, as well as 1 point per $1 spent on other purchases
Annual Fee: $0
Minimum Credit Required: Good
- Citi Rewards+® Card
Purchase Intro APR: 0% for 15 months
Transfer Intro APR: 0% for 15 months
Regular APR: 18.74% - 28.74% (V)
Balance Transfer Fee: 3% intro fee ($5 min) for each transfer in first 4 months, after that 5% ($5 min) for each transfer
Initial Bonus: 20,000 points for spending $1,500 in the first 3 months
Ongoing Rewards: 5 points per $1 spent on hotel, car rentals, and attractions booked on CitiTravel.com through December 31, 2025, 2 points per $1 spent at supermarkets and gas stations up to $6,000 spent per year, and 1 point per $1 on all other purchases
Annual Fee: $0
Minimum Credit Required: Good
- Bank of America® Travel Rewards credit card
Purchase Intro APR: 0% for 15 billing cycles
Transfer Intro APR: 0% for 15 billing cycles for any balance transfers made in the first 60 days
Regular APR: 19.24% - 29.24% Variable
Balance Transfer Fee: 3% for 60 days from account opening, then 4%
Initial Bonus: 25,000 points for spending $1,000 in the first 90 days
Ongoing Rewards: 1.5 points per $1 spent on all purchases
Annual Fee: $0
Minimum Credit Required: Excellent
- United Gateway℠ Card
Purchase Intro APR: 0% for 12 months
Transfer Intro APR: Not Offered
Regular APR: 21.99% - 28.99% (V)
Balance Transfer Fee: Either $5 or 5% of the amount of each transfer, whichever is greater.
Initial Bonus: 20,000 miles after you spend $1,000 in the first 3 months
Ongoing Rewards: 2 miles per $1 spent with United, gas stations, local transit and commuting, and 1 mile per $1 spent on all other purchases
Annual Fee: $0
Minimum Credit Required: Good
- Wyndham Credit Card
Purchase Intro APR: 0% for 6 months
Transfer Intro APR: 0% for 15 months
Regular APR: 20.99% - 29.99% (V)
Balance Transfer Fee: 5% (min $5)
Initial Bonus: 100,000 points after spending $2,000 in the first 6 months
Ongoing Rewards: 6 points per $1 spent Wyndham hotels purchases and on gas, 4 points per $1 spent on dining and groceries, and 1 point on all other purchases
Annual Fee: $75
Minimum Credit Required: Good
Most of the cards listed above do not have a foreign fee. For more options, check out our complete picks for the best travel credit cards and the best 0% APR credit cards.
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120
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What is a good interest rate on a credit card?
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120
5
Christie Matherne, Credit Card Writer
@christie_matherne
A good interest rate on a credit card is 14% and below, as that's better than the average regular interest rate on credit cards for people with excellent credit. It is best to avoid paying any interest charges, however, which is why credit cards with 0% introductory APRs are so popular.
How to Get a Good Interest Rate on a Credit Card
There are three ways to get the best possible credit card interest rate.
- For...
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28
Upvotes
Why are credit card interest rates so high?
Reply
28
Cameron DiGiovanni, Writer
@cdigiovanni20
Credit card interest rates are so high, averaging 22.89% for all new offers, because credit cards are unsecured and have no set timeframe for full repayment. Credit cards are riskier than other borrowing methods as a result, and issuers need to charge higher interest rates to compensate.
With mortgages and car loans, on the other hand, the house or car can be repossessed and resold by the lender when the balance is not paid...
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2
28
Upvotes
What are the best 0% APR cash back credit cards?
Reply
28
Chip Lupo, Credit Card Writer
@CLoop
The best 0% APR cash back credit card is the Wells Fargo Active Cash® Card. This card offers an intro APR of 0% for 15 months from account opening on both purchases and qualifying balance transfers. There is also a balance transfer fee of 3% intro for 120 days, then up to 5% (min $5). The card's regular APR is 20.24% - 29.99% Variable.
The Wells Fargo Active Cash card also offers an initial bonus of $200 cash rewards after spending $500 in the first 3 months and 2% cash rewards on purchases. The card has a $0 annual fee and like most other 0% APR cash back credit cards, you will...
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22
Upvotes
Credit Card Interest Rates Guide
22
Adam McCann, Financial Writer
@adam_mcan
What Are Credit Card Interest Rates?
Credit card interest rates tell you how much it will cost to borrow money from a credit card company, by carrying a balance from month to month. For example, if your interest rate is 20% and you carry a $500 balance, you would owe roughly $100 in interest after a year.
What Is APR on a Credit Card?
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31
Upvotes
What is a good APR for a credit card?
31
John S Kiernan, Managing Editor
@John
A good APR for a credit card is around 17% or below. A credit card APR in this range is on par with the interest rates charged by credit cards for people with excellent credit, which tend to have the lowest regular APRs. The average credit card APR overall is around 23% right now, according to WalletHub's latest Credit Card Landscape Report.
Opinions and ratings are our own. This content is not provided, commissioned or endorsed by any issuer. WalletHub independently collected information for some of the cards on this page.
- Good Credit Card APRs by Credit Score
- Best Credit Cards with Good APRs in 2024
- How to Get a Good Credit Card APR
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3
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Is 12% a good credit card APR?
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3
John S Kiernan, Managing Editor
@John
Yes, a 12% APR is a good credit card interest rate because it is cheaper than the average interest rate for new credit card offers. Very few credit cards offer a 12% regular APR, and applicants must usually have good or excellent credit to be eligible. People with credit scores that good typically can qualify for cards with 0% introductory APRs, however, so paying interest at a 12% rate isn't ideal.
Average APR for Credit Cards...
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22
Upvotes
Best 0% APR Credit Cards
22
Wallet Hub
@WalletHub
A 0% APR credit card saves you money by not charging you interest on purchases and/or balance transfers for a certain amount of time, as long as you make the minimum monthly payments. Below are WalletHub editor's picks for the best 0% APR credit cards (some cards are from WalletHub partners).
Based on our analysis of more than 1,500 credit cards and WalletHub's 100-point card rating system, we determined that the best 0% APR credit card offers do not charge interest for 15-21 months, have $0 annual fees, and often give great rewards on purchases.
The key to finding the best 0% APR credit card is to primarily focus on the length of each card’s interest-free intro period. Other terms, such as rewards, aren’t nearly as important. In addition, be sure to check your latest credit score and use a credit card calculator to craft a payment plan that you can afford. The best 0% APR credit cards require good or excellent credit for approval.
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WalletHub's credit card experts are committed to helping users find the best credit cards for their needs, above all else. That's why we use a data-driven approach to compare more than 1,500 credit card offers across the website, removing subjectivity from the equation, and it's why we have developed the most robust credit card rating system and abide by a strong editorial policy.
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3 Best 0% Intro APR Credit Cards (May 2024)
- 0% for 21 months from account opening on purchases and balance transfers:Wells Fargo Reflect® CardWells Fargo Reflect® CardLearn MoreLearn Moreon issuer's website
- 0% for 21 months on transfers:Citi® Diamond Preferred® CardCiti® Diamond Preferred® CardLearn MoreLearn Moreon issuer's website
- 0% for 15 months & bonus rewards:Chase Freedom Unlimited®Chase Freedom Unlimited®Learn MoreLearn Moreon issuer's website
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67
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What is the best low APR secured credit card?
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67
8
Tom Lipkis, WalletHub Credit Card Consultant
@cindercard
The best low APR secured credit card is the Amazon Secured Credit Card because its regular APR of 10% is among the lowest rates available to people with bad credit. The Amazon Secured Credit Card has a $0 annual fee, and cardholders need to put down a security deposit of $100+.
Best Low APR Secured Credit Cards of 2024
- Amazon Purchases:Amazon Secured Credit CardAmazon Secured Credit CardLearn MoreLearn More
- No Credit Check:Applied Bank® Secured Visa® Gold Preferred® Credit CardApplied Bank® Secured Visa® Gold Preferred® Credit CardLearn MoreLearn Moreon issuer's website
- Cash Rewards:First Progress Platinum Prestige Mastercard® Secured Credit CardFirst Progress Platinum Prestige Mastercard® Secured Credit CardLearn MoreLearn Moreon issuer's website
- Credit Union Members:NIH Federal Credit Union Platinum Secured CardNIH Federal Credit Union Platinum Secured CardLearn MoreLearn More
It's worth pointing out that carrying a balance on a secured card doesn't make much sense. You can't...
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