
Credit card interest rates can vary significantly, with average rates ranging from 15% to 30% APR. This means that if you have a $1,000 balance and a 20% interest rate, you'll be charged $200 in interest per year.
Many credit cards come with a promotional 0% APR introductory period, but this rate is often only available for a limited time, typically 6-18 months. After the promotional period ends, the regular APR kicks in, which can be much higher.
To put this in perspective, if you have a credit card with a 25% APR and you only make the minimum payment each month, it can take years to pay off your balance.
For another approach, see: Does Fed Interest Rate Affect Credit Cards
Interest Rates
The average interest rate on new credit card offers is a staggering 24.26%, with some cards offering rates as high as 27.73%. This is based on data from recent credit card offers.
The good news is that the average FICO Score of Americans has dropped to 717, making it more likely for people to qualify for lower interest rates. However, for those who don't, things can get expensive quickly.
The average interest rate for all credit card accounts is 21.47%, with accounts assessed interest having an average rate of 22.80%. This is down from previous quarters, but still relatively high.
If you're struggling with high interest rates, there are steps you can take to lower them. For example, getting a 0% balance transfer credit card can provide a much-needed reprieve from interest on a transferred balance. In fact, a June 2024 LendingTree survey found that 76% of cardholders who asked to lower their credit card's APR were successful, with an average reduction of 6.5 percentage points.
Related reading: Credit Union Balance Transfer Credit Cards
New Offer Interest Rate
The average interest rate on new credit card offers is currently around 24.26%. This is based on the latest data, which shows a slight decrease from the previous month.
The average APR for all new card offers has been steadily decreasing since the Fed announced a half-point interest rate cut in September. This trend is expected to continue, at least for the first few months of the year.
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The lowest average APR is found in the low-interest credit cards category, with an average of 17.89%. This is significantly lower than the overall average, making it a good option for those looking to save on interest.
Here's a breakdown of the average APR for different types of credit cards:
It's worth noting that while the average APR has decreased, it's still relatively high. Consumers should expect credit card interest rates to remain high for the foreseeable future.
Here's an interesting read: Why Are Interest Rates so High on Credit Cards
Current Account Interest Rates
The average interest rate on current credit card accounts is a staggering 21.47%, according to the Federal Reserve. This is down from 21.76% in the previous quarter.
The average APR for all accounts in the fourth quarter of 2024 is 21.47%, a decrease from the third quarter of 2024. This is no surprise, given the Fed's decision to cut rates.
If you're carrying a balance, your interest rate is likely higher, at 22.80%. This is the average APR for accounts assessed interest.
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The good news is that both the average APR for all accounts and the average for accounts accruing interest are expected to continue to decline, at least for the next few quarters.
Here's a breakdown of the average APR for different types of credit card accounts:
It's worth noting that nearly half of active credit cardholders carry a balance, which is why it's essential to understand the average interest rate on current credit card accounts.
Factors Affecting Rates
The type of credit card you shop for makes a big difference in what APR to expect. For example, cash back cards and 0% balance transfer cards tend to have lower APRs than airline-branded travel rewards cards.
The average APR for all new card offers is 24.26%, but it can range from 20.79% to 27.73% depending on your credit score. If you have really good credit, you can expect to be offered an average APR of 20.79%, while those with really crummy credit may be offered an average APR of 27.73%.
A good credit score can also help you qualify for lower interest rates on credit cards. According to FICO, the average FICO Score of Americans in April 2024 was 717, down one point from April 2023, which means most Americans may be more likely to qualify for lower interest rates.
Here's a breakdown of the average APRs for different types of credit cards:
If you're struggling with high interest rates, there are steps you can take to lower your APR. According to a June 2024 LendingTree survey, 76% of cardholders who asked to lower their credit card's APR were successful, with an average reduction of 6.5 percentage points.
Additional reading: Lower Apr Credit Card
Lowering a High Interest Rate
Lowering a High Interest Rate can be a challenge, but there are ways to make it more manageable.
The Federal Reserve has started lowering rates, but credit card interest rates are still near record highs due to ongoing economic uncertainty.
You have more power over your credit card's APR than you realize. Two concrete steps can significantly impact your credit card's interest rates.
Getting a 0% balance transfer credit card can be a godsend, especially if you're knee-deep in card debt. Many cards offer 0% introductory periods of 12 to 15 months on purchases and balance transfers.
A June 2024 LendingTree survey found that 76% of cardholders who asked to lower their credit card's APR were successful, with an average reduction of 6.5 percentage points.
Just 20% of cardholders asked to lower their APR, so it's likely that you're not alone in feeling overwhelmed.
You can negotiate with your credit card issuer to lower your APR by framing your request with a better offer you've received elsewhere.
Additional reading: Balance Transfer Credit Cards for Fair Credit
Factors Affecting First Impressions
Factors Affecting First Impressions can be just as important as those affecting your credit limit. Your credit limit can be a major factor in determining your credit score, and it's often determined by a few key factors.

Income is a significant factor in determining your credit limit. A higher income can lead to a higher credit limit, as lenders view you as a more reliable borrower.
Employment history is also crucial, as lenders want to see that you have a stable job and a steady income. This can be a major factor in determining your credit limit.
Your credit history is another key factor, as lenders want to see that you have a history of making on-time payments. A good credit history can lead to a higher credit limit.
Age can also play a role, as younger borrowers may have lower credit limits due to a shorter credit history.
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Trends
Credit card rates and balances have been on a rollercoaster ride over the past two decades. The average interest rate on current credit card accounts has been steadily decreasing, with the average APR for all accounts dropping from 21.76% in the third quarter of 2024 to 21.47% in the fourth quarter.

This decline can be attributed to the Federal Reserve's decision to cut rates in September, November, and December of 2024. It's likely that interest rates will continue to decrease in the coming quarters.
The average credit card balance in the U.S. has also seen significant fluctuations since 2003. The balance peaked at $866 billion in Q4 2008, only to drop to a low of $659 trillion in Q1 2014. Since then, the balance has been on an upward trajectory, reaching a two-decade high of $1.14 trillion in Q2 2024.
This increase in credit card debt is likely linked to high inflation and other macroeconomic factors that followed the pandemic. It's essential to be aware of these trends to make informed decisions about your own credit card usage.
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Methodology and Data
To determine the credit card APRs, LendingTree examined the online terms and conditions for over 220 credit cards from more than 50 issuers, including banks and credit unions.
We gathered data by noting the standard purchase APRs listed for each card on each issuer's or retailer's website, excluding introductory or promotional rates.
The data for current credit card account APRs was obtained from the latest G.19 consumer credit report from the Federal Reserve.
How Interest Rates Have Changed Over Time
Credit card interest rates have undergone significant changes over the years, largely driven by the Federal Reserve. Rates rose significantly beginning in 2015 and continued to do so until 2019. The average new credit card APR dropped for the fourth straight month since the Fed announced a half-point rate cut in September 2024.
The Fed's decision to lower interest rates in 2020 had a noticeable impact on credit card rates, with the average APR falling to 24.26% in the given data. This is a significant drop from the previous month, and it's likely that APRs will continue to fall in the coming months.
In recent years, credit card interest rates have been influenced by the Fed's rate hikes. The Fed raised rates seven times in 2022 and another four times in 2023. However, the recent Fed rate cuts in September, November, and December 2024 may lead to a decrease in credit card interest rates.
Before 2015, credit card rates were relatively stable, following the introduction of the Credit Card Accountability, Responsibility and Disclosure Act of 2009. However, the act's restrictions on rate hikes and fees led to a brief spike in rates, with one card featuring a 79.90% APR for a short time.
Here's a breakdown of the average APR for different types of credit cards in recent months:
Methodology
We examined online terms and conditions for about 220 credit cards from more than 50 issuers, including banks and credit unions.
To gather the data, we noted the standard purchase APRs listed for each card on each issuer's or retailer's website.
Introductory or promotional rates aren't included in our averages.
We used data from the latest G.19 consumer credit report from the Federal Reserve to determine current credit card account APRs.
History
Your credit history is a record of how you've managed your credit and debts over time.

Lenders look at your credit history to help assess your ability to manage your finances as a borrower. Credit history includes records of loans, such as student loans and auto loans, even if you're applying for your first credit card.
If you've demonstrated responsible borrowing in the past, it could result in a higher credit limit. This is because lenders view responsible borrowing as a sign of financial maturity.
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Frequently Asked Questions
Is $8 000 in credit card debt a lot?
For many Americans, carrying $8,000 in credit card debt is a significant financial burden, indicating a potential need for debt management strategies. This amount of debt can be overwhelming and may require careful planning to pay off.
Sources
- https://www.gao.gov/blog/american-credit-card-debt-hits-new-record-whats-changed-post-pandemic
- https://www.lendingtree.com/credit-cards/study/average-credit-card-interest-rate-in-america/
- https://www.discover.com/credit-cards/card-smarts/average-credit-card-debt/
- https://www.moneygeek.com/credit-cards/average-credit-card-debt/
- https://www.chase.com/personal/credit-cards/education/basics/average-credit-limit-on-a-first-credit-card
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