Average Credit Card Interest Rates
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We examined about 200 credit cards from more than 50 issuers to get a sense of average credit card interest rates, or average credit card APRs, among card types. You can use this as a guide to see how your existing or potential APRs compare. If you're carrying a credit card balance, consider this data to help figure out how you might lower your interest payments.
Average credit card interest rates by card type
The average credit card APR varies significantly depending on the type of card. For example, rewards credit cards can generally have higher average APRs to make up for additional benefits. Most credit cards have an APR range that’ll depend on your creditworthiness, so we also focused on low and high figures.
Average interest rates on new credit card offers in the U.S. in June 2023
Category | Minimum APR | Maximum APR | Average | Previous month |
|---|---|---|---|---|
| Average APR for all new card offers | 20.51% | 27.61% | 24.06% | 23.98% |
| 0% balance transfer cards | 18.46% | 27.61% | 23.04% | 22.79% |
| No-annual-fee cards | 19.87% | 27.32% | 23.59% | 23.58% |
| Rewards cards | 20.43% | 27.71% | 24.07% | 23.92% |
| Cash back cards | 20.45% | 27.15% | 23.80% | 23.78% |
| Travel rewards cards | 20.58% | 28.48% | 24.53% | 24.32% |
| Airline credit cards | 20.96% | 29.14% | 25.05% | 24.79% |
| Hotel credit cards | 21.24% | 29.18% | 25.21% | 24.99% |
| Low-interest credit cards | 13.57% | 23.62% | 18.60% | 18.30% |
| Grocery rewards cards | 20.26% | 28.10% | 24.18% | 23.92% |
| Gas rewards cards | 20.66% | 27.90% | 24.28% | 24.03% |
| Dining rewards cards | 20.38% | 28.14% | 24.26% | 24.08% |
Lower APRs are generally for those consumers with excellent credit scores.
Credit card interest rates: From 1994 to today
The Federal Reserve collects information on the APRs of credit cards issued to American consumers by commercial banks — this includes data from non-reward and retail credit card accounts. These numbers are reported in two segments: interest rates across all credit card accounts, and those specifically for interest-bearing accounts. As of the first quarter of 2023, both numbers were the highest since the Fed began tracking in 1994, with both topping 20%.
Credit card APRs dating to 2010
Year | Average interest rate on all credit card accounts | Average interest rate on interest-bearing accounts |
|---|---|---|
| 2023 | 20.09% | 20.92% |
| 2022 | 14.56% | 16.17% |
| 2021 | 14.75% | 15.91% |
| 2020 | 15.09% | 16.61% |
| 2019 | 15.09% | 16.91% |
| 2018 | 13.63% | 15.32% |
| 2017 | 12.54% | 13.86% |
| 2016 | 12.31% | 13.51% |
| 2015 | 11.98% | 13.53% |
| 2014 | 11.83% | 13.14% |
| 2013 | 11.94% | 13.02% |
| 2012 | 12.34% | 13.04% |
Source: Federal Reserve monthly G.19 report on consumer credit. Note: The data is from the first quarters of the listed years.
And here’s a fuller look dating to 1994:
Average penalty APRs on credit cards
The penalty rate, also called the default rate, is the APR you might be charged going forward if you fail to make on-time payments. This penalty rate can be significantly higher than the APR initially offered on your credit card.
During your first year with a card, companies — via the CARD Act — are generally allowed to raise APRs only after you’re 60 days late on your payments. (One major exception: Rates on variable-rate credit cards, including most credit cards in America today, can go up when the Federal Reserve raises interest rates.)
Once the account is more than a year old, issuers can increase your rate for any reason. However, before the rate increases, they generally must give you 45 days advance notice of the change and give you the option to close the card without having the new rate take effect. Again, a Fed rate increase is a major exception to this rule. Those can and typically are passed along without advance notice from the card issuer.
In our survey of credit cards, the penalty APR was generally dependent upon the card issuer. There’s no federal limit on maximum allowable APRs.
Sample of penalty APRs
Issuer | Penalty interest rate (%) |
|---|---|
| Citi | Up to 29.99% |
| Chase | Up to 29.99% |
| American Express | 29.99% |
| Bank of America | Up to 29.99% |
That 29.99% number has long been a common penalty APR. However, given the rapid rise of interest rates since the start of 2022, the gap between the typical purchase APR on a new credit card (about 24%) and the penalty rate isn’t as wide as it once was, especially for those with imperfect credit.
Sources
- LendingTree
- Federal Reserve G.19 consumer credit report
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How We Calculate Rewards: ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. These estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.
Example of how we calculate the rewards rates: When redeemed for travel through Ultimate Rewards, Chase Sapphire Preferred points are worth $0.0125 each. The card awards 2 points on travel and dining and 1 point on everything else. Therefore, we say the card has a 2.5% rewards rate on dining and travel (2 x $0.0125) and a 1.25% rewards rate on everything else (1 x $0.0125).