Average Credit Card Interest Rate
The average credit card interest rate is 21.00% APR across all accounts, and 21.52% for accounts actually charged interest (Federal Reserve). That makes credit cards by far the most expensive form of everyday borrowing — roughly three times the rate of a new-car loan.
Credit card APR is a compounding rate: unpaid interest is added to your balance and then charged interest itself. Because the rate is so high, carrying a balance is one of the costliest financial habits there is — and paying it off is effectively a guaranteed ~21% return.
How credit card APR compares
Credit cards carry the highest average rate of any mainstream consumer credit because the debt is unsecured — there is no car or house the lender can repossess — so the price of that risk is baked into the rate. The comparison below uses the latest Federal Reserve and Experian averages.
| Measure | Average APR | What it means |
|---|---|---|
| All credit card accounts | 21.00% | Stated APR averaged across every account |
| Accounts assessed interest | 21.52% | Only accounts actually carrying a balance |
What carrying a balance costs
At a 21% APR, a balance grows fast if you only make minimum payments. The table below shows the interest you would pay on a $5,000 balance at different payoff speeds — the slower you pay, the more the compounding rate works against you.
| Monthly payment | Time to pay off | Total interest |
|---|---|---|
| $150 | About 4 years | About $2,500 |
| $250 | About 2 years | About $1,200 |
| $500 | About 11 months | About $540 |
How to pay less interest
The single most valuable move is to stop carrying a balance — paying in full each month means the APR never applies. If you already carry a balance, a 0% balance-transfer card or a lower-rate personal loan can pause or cut the interest while you pay down the principal.
You can also ask your issuer for a lower rate — cardholders with good payment histories are often granted a reduction just for asking. Use the payoff calculators below to see how a higher monthly payment shortens the timeline and slashes total interest.
What is the average credit card interest rate right now?
The Federal Reserve reports an average of 21.00% APR across all credit card accounts and 21.52% for accounts assessed interest in its latest data. Individual card rates commonly range from about 18% to 29% depending on the card and your credit.
Why are credit card rates so high?
Credit card debt is unsecured — there is no collateral for the lender to seize if you default — so issuers price in that higher risk. Rates also rise and fall with the Federal Reserve’s benchmark rate, which climbed sharply in 2022–2023.
Is a 21% APR bad?
It is about average for credit cards, but it is very high compared with other borrowing — a new-car loan averages 6.56%. Any balance you carry at ~21% grows quickly, so the goal is to pay in full and never trigger the interest charge.
How can I lower my credit card interest rate?
Pay the balance in full to avoid interest entirely; move debt to a 0% balance-transfer card or a lower-rate personal loan; improve your credit score; or simply call your issuer and ask for a lower rate, which often works for on-time payers.