Average Credit Card Interest Rate in America Today

The average credit card interest rate in America is 24.43% after the third straight monthly decrease in the wake of recent Federal Reserve rate cuts.

LendingTree reviews about 220 of the most popular credit cards in the U.S. — from more than 50 issuers — to comprehensively look at the state of credit card interest rates. We publish our findings here.

What’s the average interest rate on new credit card offers?

Hoping to save on interest with a new credit card? See our picks for the best 0% APR credit cards with long intro periods.

The average new credit card APR fell nearly two-tenths of a percentage point in December. It’s the third straight monthly decrease since the Fed announced at its Sept. 17-18 meeting that it would lower interest rates by a half-point. That was the first time since March 2020 that the Fed lowered rates. However, the Fed followed that by cutting rates by a quarter-point at its Nov. 6-7 meeting, and it could cut again at its final meeting of the year in December. That’s good news for those with card debt because it likely ensures that APRs on new credit card offers will continue to fall, at least through the first of the year.

Still, no one should expect card APRs to fall off a cliff overnight. It would be wise for consumers to expect credit card interest rates to remain high for the foreseeable future, even if they’re no longer at record levels.

If you have really good credit now, the average APR you can expect to be offered is 20.97%. If you have really crummy credit, the average APR offered is 27.90%. That’s a big difference.

The good news is that the average FICO Score of Americans in April 2024 was 717, according to FICO — down one point from April 2023. That means most Americans may be more likely to qualify for lower interest rates. For those who don’t, however, things get expensive in a hurry.

What’s the average interest rate on current credit card accounts?

Each quarter, the Federal Reserve releases data on cards currently in Americans’ wallets. It looks at the average interest rate for accounts assessed interest — those that weren’t paid in full at the end of the month — and across all credit card accounts.

It’s important to distinguish between average assessed interest and interest across all credit card accounts because nearly half of active credit cardholders carry a balance. The average APR for all accounts in the third quarter of 2024 is 21.76%. That’s up from the second quarter of 2024, when the average was 21.51%.

Both the average APR for all accounts and the average for accounts accruing interest are at record highs. However, the numbers are for August — the most recent available from the Fed — and were gathered before the Fed announced it would cut rates in September. Expect both to decline when next quarter’s data is released early next year.

How have credit card interest rates changed over the years?

In recent years, we’ve seen significant movement in interest rates, largely driven by the Federal Reserve. Rates rose significantly beginning in 2015 and continued to do so until 2019. The following year, the Fed dramatically lowered interest rates in response to the economic turmoil at the beginning of the pandemic. In 2022, however, the Fed reversed course, raising rates seven times. There were another four hikes in 2023. With the Fed’s half-a-percentage-point cut in September 2024 and a subsequent quarter-point cut in November 2024, we’ll see what changes going forward.

Before 2015, credit card rates were largely stable for several years, following the introduction of the Credit Card Accountability, Responsibility and Disclosure Act of 2009, better known as the Credit CARD Act. The pro-consumer law, signed by former President Barack Obama, brought enormous change to the credit card space. It set limits on when issuers could raise cardholders’ rates, changed how payments must be applied to balances, restricted certain fees and much more. Those changes forced issuers to scramble to figure out how to recoup the revenues lost under the CARD Act. As a result, credit card rates became volatile for several years — one card even famously featured a 79.90% APR for a short time — as banks determined what the market could bear.

Ultimately, all the changes led to overall higher credit card interest rates but relative stability, even as the nation emerged from the Great Recession. That stability lasted until the Fed began raising rates in 2015. Those hikes helped push rates to the high levels we see today.

What can I do if my interest rate is too high?

These are certainly unusual times. Even though the Fed has started lowering rates and more decreases are expected, credit card interest rates are still near record highs as credit card issuers wrestle with ongoing economic uncertainty, including sky-high consumer debt, rising delinquencies and a shaky job market. That means it’s perhaps more important than ever that you start knocking down your credit card debt in a big way. That’s certainly easier said than done, though. If it is possible, one of the best things you can do is pay down your debt to free up more cash for a rainy day fund.

You also have more power over your credit card’s APR than you realize. Two concrete steps can significantly impact your credit card’s interest rates.

Get a 0% balance transfer credit card

It may seem counterintuitive to fight credit card debt by getting another credit card, but 0% offers can be a godsend. Many cards offer 0% introductory periods of 12 to 15 months on purchases and balance transfers, with some even offering 18 to 21 months. If you’re knee-deep in card debt, a yearlong reprieve from interest on a transferred balance can make a huge difference. Make sure you understand all the fees, deadlines and rules associated with the card before applying. Also, you’ll likely need a good credit score — perhaps 680 or higher — to get one as banks are more selective about whose transferred balances they’ll take on given economic uncertainty. However, if you have good credit, you’ll likely have lots of options from which to choose.

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Ask your issuer for a lower rate

A June 2024 LendingTree survey found that 76% of cardholders who asked to lower their credit card’s APR were successful. The average reduction was 6.5 percentage points. That’s a big deal! The problem is that just 20% of cardholders asked. The best way to go about it is to find credit card offers you’d qualify for at sites like LendingTree or in your snail mail, and use those to frame your negotiations. Say something like, “I love my card, but it has a 27.50% APR and I’ve just been offered a card with a 21.00% APR. Will you match it?” There’s a good chance they’ll work with you. Just know you’ll have to make that call and ask for it. They likely won’t come to you.

 Looking for a way to free up more resources to pay off your credit card? Try a debt consolidation loan to help pay off your other debt faster.

Methodology: How we evaluated credit card APRs

For new credit card offer APRs, LendingTree examined the 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.)

For current credit card account APRs, we used data from the latest G.19 consumer credit report from the Federal Reserve.