Average Credit Card Interest Rates and APR of March 2024

ElitePersonalFinance
Last Update: September 25, 2023 Credit Cards Loans Studies
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While the U.S. Federal Funds Rate and the interest rates on U.S. Treasury securities sunk to or near their all-time lows during the pandemic, credit card borrowers didn’t benefit to the same degree.

For example, we analyzed more than 100 consumer credit cards across seven of the largest issuers in the United States. And we found that the average annual percentage rate (APR) ranges from 16.22% – 23.94%. Moreover, the median APR ranges from 15.24% – 23.99%.

In addition, Discover (13.85%) has the lowest average low-end APR, while Capital One (22.94%) has the highest average low-end APR. What’s more, all of the institutions in our study have average and median high-end APRs that exceed 22%.

Financial Institution:Average APR:Median APR:
Discover13.85% – 22.70%11.99% – 22.99%
Wells Fargo14.32% – 24.99%14.99% – 24.99%
American Express15.05% – 24.11%15.74% – 23.99%
Citigroup15.47% – 23.30%15.24% – 23.99%
Chase15.75% – 22.87%15.99% – 22.99%
Bank of America16.18% – 23.74%13.99% – 23.99%
Capital One22.94% – 25.89%24.99% – 26.99%
U.S. Total16.22% – 23.94%15.24% – 23.99%

Average Credit Card Interest Rates and APR of March 2024: Statistics and Key Findings

National Statistics:

We analyzed more than 100 consumer credit cards across seven of the largest issuers in the United States. And we found that the average annual percentage rate (APR) ranges from 16.22% – 23.94%. Moreover, the median APR ranges from 15.24% – 23.99%.

By Institution:

Discover (13.85%) has the lowest average low-end APR, while Capital One (22.94%) has the highest average low-end APR.

While Bank of America has the second-highest average low-end APR (16.18%) of the seven issuers on our list, it has the second-lowest low-end median APR (13.99%) among the potential candidates.

Chase’s minimum low-end APR (13.99%) is 1% less than Capital One’s minimum (14.99%). American Express (2) and Bank of America (2) offer credit cards with low-end APRs less than Chase and Capital One.

Chase (26) and Capital One (21) combine to account for nearly half of all the credit cards available. Conversely, Wells Fargo (3) and Discover (7) have the least amount of credit card options available

For Business:

Parsing the data from another 39 business cards, we found that the U.S. average APR ranges from 14.27% – 21.87%, and the U.S. median APR ranges from 13.99% – 21.97%.

Wells Fargo (10.88%) has the lowest average low-end APR, while Capital One (17.74%) has the highest average low-end APR.

American Express (14) has the most business credit card options to choose from, while Chase (7) and Capital One (7) tie for second.

For College Students:

The U.S. average APR for student credit cards ranges from 17.69% – 23.49%.

Discover (12.99%) and Bank of America (12.99%) offer products with the lowest low-end APRs. Conversely, Capital One’s (26.99%) three student credit cards have the highest low-end APRs.

For Cash Back Cards:

The U.S. average APR for cash-back credit cards ranges from 16.10% – 23.59%. Likewise, the median ranges from 14.80% – 23.99%.

American Express (13.99%) has the lowest average low-end APR, while Capital One (23.52%) has the highest average low-end APR.

Discover (11.99%) has three products with the lowest low-end APR when analyzing individual credits cards. Moreover, Bank of America, American Express, and Citigroup (13.99%) tie for second place.

Capital One (15) and Bank of America (7) have the highest number of cash-back credit cards in their portfolios.

For Travel Rewards Cards:

The U.S. average APR for travel rewards credit cards ranges from 15.54% – 23.87%, while the median ranges from 15.81% – 23.89%.

Discover (11.99%) has the lowest average low-end APR, while Capital One (18.74%) has the highest average low-end APR.

Chase (20) has the most credit card options available within the travel rewards category, while American Express (11) is a distant second. Moreover, Wells Fargo and Discover only have one credit card available within the travel rewards category.

By Credit Score:

Credit card products requiring excellent credit have lower low-end APRs than options at the other side of the spectrum.

Unsecured credit cards designed for Americans with good credit often have more than 20% flat APRs. Likewise, secured credit cards — which require you to post collateral — have APRs north of 20%.

At U.S. Commercial Banks:

The average credit card interest rate charged on all accounts by U.S. commercial banks is 14.51%. Moreover, on accounts assessed interest, the figure increases to 16.44%.

U.S. commercial banks’ average credit card interest rates on all accounts and accounts assessed interest have increased by 2% and 12%, respectively, since Q1 2010.

Average Credit Card Interest Rates and APR of March 2024: Charts, Graph, Analysis

Average Credit Card APR by Institution

Chase (26) and Capital One (21) combine to account for nearly half of all the credit cards available.

However, Capital One’s gift is also its curse. For example, the Capital One VentureOne Rewards, Quicksilver Rewards, and SavorOne Rewards cards have low-end APRs of 14.99%. However, 67% of Capital One’s credit cards have low-end APRs of 24.99% or more. Likewise, 48% of Capital One’s credit cards have low-end APRs of 26.99%. As a result, its average and median values are much higher than its competitors.

Conversely, Chase’s minimum low-end APR (13.99%) is 1% less than Capital One’s minimum (14.99%), and none of Chase’s credit cards have high-end APRs that exceed 23.99%.

Chase:APR:Capital One:APR:
Disney Premier Visa13.99% – 22.99%Capital One VentureOne Rewards14.99% – 24.99%
Disney Visa13.99% – 22.99%Capital One Quicksilver Rewards14.99% – 24.99%
Amazon Prime Rewards Visa Signature14.24% – 22.24%Capital One SavorOne Rewards14.99% – 24.99%
Chase Freedom Student14.99%Capital One Venture Rewards15.99% – 23.99%
Chase Freedom Unlimited14.99% – 23.74%Capital One Savor Rewards15.99% – 23.99%
Chase Freedom Flex14.99% – 23.74%Capital One Venture X Rewards16.99% – 23.99%
Chase Slate Edge14.99% – 23.74%Capital One Walmart Rewards17.99% – 26.99%
Southwest Rapid Rewards Priority15.99% – 22.99%Pottery Barn Key Rewards Visa24.99%
Southwest Rapid Rewards Premier15.99% – 22.99%Williams Sonoma Key Rewards Visa24.99%
Chase Sapphire Preferred15.99% – 22.99%West Elm Key Rewards Visa24.99%
British Airways Visa Signature15.99% – 22.99%The Key Rewards Visa24.99%
Aer Lingus Visa Signature15.99% – 22.99%Capital One QuicksilverOne Rewards26.99%
Iberia Visa Signature15.99% – 22.99%Capital One Platinum26.99%
Marriott Bonvoy Boundless15.99% – 22.99%Capital One VentureOne Rewards  for Good Credit26.99%
World of Hyatt15.99% – 22.99%Capital One Quicksilver Rewards  for Good Credit26.99%
IHG Rewards Club Premier15.99% – 22.99%Capital One SavorOne Rewards  for Good Credit26.99%
Southwest Rapid Rewards Plus15.99% – 22.99%Capital One SavorOne Rewards for Students26.99%
Starbucks Rewards Visa15.99% – 22.99%Capital One Quicksilver Rewards for Students26.99%
Marriott Bonvoy Bold15.99% – 22.99%Capital One Journey Student Rewards26.99%
IHG Rewards Club Traveler15.99% – 22.99%Capital One Quicksilver Secured Rewards26.99%
United Club Infinite16.49% – 23.49%Capital One Platinum Secured26.99%
United Quest16.49% – 23.49%
United Explorer16.49% – 23.49%
Aeroplan16.49% – 23.49%
United Gateway16.49% – 23.49%
Chase Sapphire Reserve16.99% – 23.99%
Average APR:15.75% – 22.87%Average APR:22.94% – 25.89%
Median APR:15.99% – 22.99%Median APR:24.99% – 26.99%

Next on the docket, American Express (2) and Bank of America (2) offer credit cards with low-end APRs less than Chase and Capital One. For example, the Amex EveryDay Preferred and Amex EveryDay cards have low-end APRs of 12.99%. Similarly, BankAmericard and BankAmericard for Students also have low-end APRs of 12.99%.

Moreover, while many of Bank of America’s credit cards have competitive APRs, its three secured cards have interest rates of 22.99% and 23.99%. As a result, the APRs on these collateralized options helped uplift Bank of America’s (16.18%) average low-end APR. Conversely, Bank of America’s (13.99%) median low-end APR was less affected by the outliers.

To that point, while Bank of America has the second-highest average low-end APR of the seven issuers on our list, it has the second-lowest low-end median APR among the potential candidates.

American Express:APR:Bank of America:APR:
Amex EveryDay Preferred12.99% – 22.99%BankAmericard12.99% – 22.99%
Amex EveryDay12.99% – 23.99%BankAmericard for Students12.99% – 22.99%
Blue Cash Preferred13.99% – 23.99%Bank of America Customized Cash Rewards13.99% – 23.99%
Blue Cash Everyday13.99% – 23.99%Bank of America Unlimited Cash Rewards13.99% – 23.99%
Cash Magnet13.99% – 23.99%Bank of America Travel Rewards13.99% – 23.99%
Blue from American Express13.99% – 23.99%Customized Cash Rewards for Students13.99% – 23.99%
Delta SkyMiles Reserve15.74% – 24.74%Unlimited Cash Rewards for Students13.99% – 23.99%
Marriott Bonvoy Brilliant15.74% – 24.74%Bank of America Travel Rewards for Students13.99% – 23.99%
Hilton Honors Aspire15.74% – 24.74%Susan G. Komen Customized Cash Rewards13.99% – 23.99%
Delta SkyMiles Platinum15.74% – 24.74%Bank of America Premium Rewards15.99% – 22.99%
Delta SkyMiles Gold15.74% – 24.74%Free Spirit Travel More World Elite15.99% – 23.99%
Hilton Honors Surpass15.74% – 24.74%Allegiant World15.99% – 23.99%
Hilton Honors15.74% – 24.74%Alaska Airlines Visa15.99% – 23.99%
Delta SkyMiles Blue15.74% – 24.74%BankAmericard Secured22.99%
American Express Platinum15.99% – 22.99%Customized Cash Rewards Secured23.99%
American Express Gold15.99% – 22.99%Bank of America Unlimited Cash Rewards Secured23.99%
American Express Green15.99% – 22.99%
Average APR:15.05% – 24.11%Average APR:16.18% – 23.74%
Median APR:15.74% – 23.99%Median APR:13.99% – 23.99%

Continuing the theme, Wells Fargo (3) and Discover (7) have the least amount of credit card options available. However, they rank first and second among issuers with the lowest average low-end APRs. And right in the middle of the pack, Citigroup is the only issuer in our study that offers credit cards made exclusively for Costco members.

Citigroup:APR:Discover:APR:Wells Fargo:APR:
Citi Rewards+13.49% – 23.49%Discover Cash Back11.99% – 22.99%Wells Fargo Reflect12.99% – 24.99%
Citi Diamond Preferred13.74% – 23.74%Discover Travel11.99% – 22.99%Hotels.com Rewards Visa14.99% – 22.99%,
AT&T Access Credit13.99% – 22.99%Discover Gas & Restaurants11.99% – 22.99%Wells Fargo Active Cash14.99% – 24.99%
Citi Custom Cash13.99% – 23.99%NHL Collection11.99% – 22.99%
Citi Double Cash13.99% – 23.99%Discover Student Chrome12.99% – 21.99%
Citi Simplicity14.74% – 24.74%Discover Student Cash Back12.99% – 21.99%
Costco Anywhere Visa15.24% – 15.24%Discover Secured22.99%
Citi Premier15.99% – 23.99%
Citi/AAdvantage Executive World Elite15.99% – 24.99%
Citi/AAdvantage Platinum Select World Elite15.99% – 24.99%
American Airlines AAdvantage MileUp15.99% – 24.99%
Citi Secured22.49%
Average APR:15.47% – 23.30%Average APR:13.85% – 22.70%Average APR:14.32% – 24.99%
Median APR:15.24% – 23.99%Median APR:11.99% – 22.99%Median APR:14.99% – 24.99%

Average Credit Card APR for Business

Parsing the data from another 39 business cards, we found that the U.S. average APR ranges from 14.27% – 21.87%, and the U.S. median APR ranges from 13.99% – 21.97%.

Moreover, Wells Fargo (10.88%) has the lowest average low-end APR, while Capital One (17.74%) has the highest average low-end APR. And though it’s a slight improvement over consumer credit cards, all of the institutions’ business credit cards in our study have average and median high-end APRs that exceed 20%.

Financial Institution:Average APR:Median APR:
Wells Fargo10.88% – 21.24%11.24% – 21.24%
Bank of America12.59% – 22.39%12.24% – 22.24%
Discover12.99% – 20.99%12.99% – 20.99%
American Express14.78% – 22.93%14.24% – 22.24%
Chase15.28% – 21.70%15.99% – 22.99%
Citigroup15.62% – 20.12%15.62% – 20.12%
Capital One17.74% – 23.70%15.62% – 23.99%
U.S. Total14.27% – 21.87%13.99% – 21.97%

In addition, American Express (14) has the most business credit card options to choose from, while Chase (7) and Capital One (7) tie for second. For context, the rows below labeled as “N/A” are like that because the American Express Plum Card and the Capital One Spark Cash Plus Card require businesses to pay their credit card balances in full each month. Also, please note that the former offers a 60-day grace period for late payments. However, no APRs are listed for either option.

American Express Business Credit Cards:APR:
Blue Business Cash13.24% – 19.24%
Blue Business Plus13.24% – 19.24%
Business Platinum14.24% – 22.24%
Business Gold14.24% – 22.24%
Business Green Rewards14.24% – 22.24%
Amazon Business Prime14.24% – 22.24%
Amazon Business14.24% – 22.24%
Delta SkyMiles Reserve Business15.74% – 24.74%
Delta SkyMiles Platinum Business15.74% – 24.74%
Marriott Bonvoy Business15.74% – 24.74%
Delta SkyMiles Gold Business15.74% – 24.74%
Hilton Honors Business15.74% – 24.74%
Lowe’s Business Rewards15.74% – 24.74%
PlumN/A
Chase Business Credit Cards 
Ink Business Unlimited13.24% – 19.24%
Ink Business Cash13.24% – 19.24%
Ink Business Preferred15.99% – 20.99%
Southwest Rapid Rewards Performance Business15.99% – 22.99%
Southwest Rapid Rewards Premier Business15.99% – 22.99%
World of Hyatt Business15.99% – 22.99%
United Business16.49% – 23.49%
Capital One Business Credit Cards 
Capital One Spark Cash Select  – Excellent Credit13.24% – 19.24%
Capital One Spark Miles Select13.99% – 23.99%
CLUB Business15.24% – 26.99%
Capital One Spark Cash Select  – Good Credit15.99% – 23.99%
Capital One Spark Miles20.99%
Capital One Spark Classic26.99%
Capital One Spark Cash PlusN/A
Bank of America Business Credit Cards 
Platinum Plus  Business10.24% – 21.24%
Business Advantage Customized Cash Rewards12.24% – 22.24%
Business Advantage Unlimited Cash Rewards12.24% – 22.24%
Business Advantage Travel Rewards12.24% – 22.24%
Alaska Airlines Business15.99% – 23.99%
Wells Fargo Business Credit Cards 
Wells Fargo Business Elite SignaturePrime + 3.99%
Wells Fargo Business PlatinumPrime + 7.99% to Prime + 17.99%
Wells Fargo Business SecuredPrime + 11.90%
Citigroup Business Credit Cards 
Costco Anywhere Visa Business15.24% – 15.24%
CitiBusiness/AAdvantage Platinum Select15.99% – 24.99%
Discover Business Credit Cards 
Discover Business12.99% – 20.99%

Average Credit Card APR for College Students

For credit cards designed specifically for students, Discover (12.99%) and Bank of America (12.99%) offer products with the lowest low-end APRs. Conversely, Capital One’s (26.99%) three student credit cards have the highest low-end APRs.

Across the entire basket, the U.S. average APR for student credit cards ranges from 17.69% – 23.49%. However, Capital One’s high student APRs push up the low-end average. As a result, the low-end U.S. average APR for student credit cards is 13.70%, excluding Capital One’s products.

Student Credit Cards:APR:
Discover Student Chrome Card12.99% – 21.99%
Discover Student Cash Back Card12.99% – 21.99%
BankAmericard Card for Students12.99% – 22.99%
Bank of America Customized Cash Rewards Card for Students13.99% – 23.99%
Bank of America Unlimited Cash Rewards Card for Students13.99% – 23.99%
Bank of America Travel Rewards  Card for Students13.99% – 23.99%
Chase Freedom Student14.99%
Capital One SavorOne Rewards Card for Students26.99%
Capital One Quicksilver Rewards Card for Students26.99%
Capital One Journey Student Rewards Card26.99%
U.S. Average17.69% – 23.49%

Average Credit Card APR for Cash Back Cards

Since cash is king for many Americans, we compared the average, and median APRs offered on cash-back credit cards. American Express (13.99%) has the lowest average low-end APR on one side of the coin. On the other side, Capital One (23.52%) has the highest average low-end APR.

Moreover, the U.S. average APR for cash-back credit cards ranges from 16.10% – 23.59%. Likewise, the median ranges from 14.80% – 23.99%.

Financial Institution:Average APR:Median APR:
American Express13.99% – 23.99%13.99% – 23.99%
Discover14.16% – 22.59%12.49% – 22.59%
Citigroup14.41% – 21.07%13.99% – 23.99%
Chase14.80% – 23.24%14.99% – 23.74%
Wells Fargo14.99% – 24.99%14.99% – 24.99%
Bank of America16.85% – 23.99%13.99% – 23.99%
Capital One23.52% – 25.24%24.99% – 24.99%
U.S. Total16.10% – 23.59%14.80% – 23.99%

We found that Discover (11.99%) has three products with the lowest low-end APR when analyzing individual credits cards. Moreover, Bank of America, American Express, and Citigroup (13.99%) tie for second place.

For context, Capital One (15) and Bank of America (7) have the highest number of cash-back credit cards in their portfolios. However, the former’s APRs are much less competitive than the latter’s metrics.

Capital One Cash Back Credit Cards:APR:
Capital One Quicksilver Rewards14.99% – 24.99%
Capital One SavorOne Rewards14.99% – 24.99%
Capital One Savor Rewards15.99% – 23.99%
Capital One Walmart Rewards Master17.99% – 26.99%
Pottery Barn Key Rewards Visa24.99%
Williams Sonoma Key Rewards Visa24.99%
West Elm Key Rewards Visa24.99%
The Key Rewards Visa24.99%
Capital One QuicksilverOne Rewards26.99%
Capital One Quicksilver Rewards  for Good Credit26.99%
Capital One SavorOne Rewards  for Good Credit26.99%
Capital One SavorOne Rewards  for Students26.99%
Capital One Quicksilver Rewards  for Students26.99%
Capital One Journey Student Rewards26.99%
Capital One Quicksilver Secured Rewards26.99%
Bank of America Cash Back Credit Cards 
Bank of America Customized Cash Rewards13.99% – 23.99%
Bank of America Unlimited Cash Rewards13.99% – 23.99%
Bank of America Customized Cash Rewards  for Students13.99% – 23.99%
Bank of America Unlimited Cash Rewards  for Students13.99% – 23.99%
Susan G. Komen Customized Cash Rewards13.99% – 23.99%
Bank of America Customized Cash Rewards Secured23.99%
Bank of America Unlimited Cash Rewards Secured23.99%
Discover Cash Back Credit Cards 
Discover Cash Back11.99% – 22.99%
Discover Gas & Restaurants11.99% – 22.99%
NHL Collection11.99% – 22.99%
Discover Student Chrome12.99% – 21.99%
Discover Student Cash Back12.99% – 21.99%
Discover Secured22.99%
Chase Cash Back Credit Cards 
Amazon Prime Rewards Visa Signature14.24% – 22.24%
Chase Freedom Student14.99%
Chase Freedom Unlimited14.99% – 23.74%
Chase Freedom Flex14.99% – 23.74%
American Express Cash Back Credit Cards 
Blue Cash Preferred13.99% – 23.99%
Blue Cash Everyday13.99% – 23.99%
Cash Magnet13.99% – 23.99%
Citigroup Cash Back Credit Cards 
Citi Custom Cash13.99% – 23.99%
Citi Double Cash13.99% – 23.99%
Costco Anywhere Visa15.24% – 15.24%
Wells Fargo Cash Back Credit Cards 
Wells Fargo Active Cash14.99% – 24.99%

Average Credit Card APR for Travel Rewards Cards

Travel rewards credit cards offer an easy way to earn free flights, hotel accommodations, and meals to make the most out of your next vacation. And when isolating the group, we found that Discover (11.99%) has the lowest average low-end APR, while Capital One (18.74%) has the highest average low-end APR.

Likewise, the U.S. average APR for travel rewards credit cards ranges from 15.54% – 23.87%, while the median ranges from 15.81% – 23.89%.

Financial Institution:Average APR:Median APR:
Discover11.99% – 22.99%11.99% – 22.99%
Wells Fargo14.99% – 22.99%14.99% – 22.99%
Bank of America15.32% – 23.79%15.99% – 23.99%
American Express15.81% – 24.26%15.74% – 24.74%
Chase15.97% – 23.17%15.99% – 22.99%
Citigroup15.99% – 23.99%15.99% – 23.99%
Capital One18.74% – 24.99%16.49% – 24.49%
U.S. Total15.54% – 23.87%15.81% – 23.89%

Zooming in for a closer look, Discover (11.99%) wins the gold medal for the lowest low-end APR within the category. Conversely, Chase and Bank of America (13.99%) earned the silver medal.

However, Chase (20) has the most credit card options available within the travel rewards category, while American Express (11) is a distant second. Moreover, Wells Fargo and Discover only have one credit card available within the travel rewards category, and their only options allowed them to maintain constant average and median statistics.

Chase Travel Rewards Credit Cards:APR:
Disney Premier Visa13.99% – 22.99%
Disney Visa13.99% – 22.99%
Southwest Rapid Rewards Priority15.99% – 22.99%
Southwest Rapid Rewards Premier15.99% – 22.99%
Chase Sapphire Preferred15.99% – 22.99%
British Airways Visa Signature15.99% – 22.99%
Aer Lingus Visa Signature15.99% – 22.99%
Iberia Visa Signature15.99% – 22.99%
Marriott Bonvoy Boundless15.99% – 22.99%
World of Hyatt15.99% – 22.99%
IHG Rewards Club Premier15.99% – 22.99%
Southwest Rapid Rewards Plus15.99% – 22.99%
Marriott Bonvoy Bold15.99% – 22.99%
IHG Rewards Club Traveler15.99% – 22.99%
United Club Infinite16.49% – 23.49%
United Quest16.49% – 23.49%
United Explorer16.49% – 23.49%
Aeroplan16.49% – 23.49%
United Gateway16.49% – 23.49%
Chase Sapphire Reserve16.99% – 23.99%
American Express Travel Rewards Credit Cards 
Delta SkyMiles Reserve15.74% – 24.74%
Marriott Bonvoy Brilliant15.74% – 24.74%
Hilton Honors Aspire15.74% – 24.74%
Delta SkyMiles Platinum15.74% – 24.74%
Delta SkyMiles Gold15.74% – 24.74%
Hilton Honors Surpass15.74% – 24.74%
Hilton Honors15.74% – 24.74%
Delta SkyMiles Blue15.74% – 24.74%
American Express Platinum15.99% – 22.99%
American Express Gold15.99% – 22.99%
American Express Green15.99% – 22.99%
Bank of America Travel Rewards Credit Cards 
Bank of America Travel Rewards13.99% – 23.99%
Bank of America Travel Rewards   for Students13.99% – 23.99%
Bank of America Premium Rewards15.99% – 22.99%
Free Spirit Travel More World Elite15.99% – 23.99%
Allegiant World15.99% – 23.99%
Alaska Airlines Visa15.99% – 23.99%,
Citigroup Travel Rewards Credit Cards 
Citi Premier15.99% – 23.99%
Citi/AAdvantage Executive World Elite15.99% – 24.99%
Citi/AAdvantage Platinum Select World Elite15.99% – 24.99%
American Airlines AAdvantage MileUp15.99% – 24.99%
Capital One Travel Rewards Credit Cards 
Capital One VentureOne Rewards14.99% – 24.99%
Capital One Venture Rewards15.99% – 23.99%
Capital One Venture X Rewards16.99% – 23.99%
Capital One VentureOne Rewards  for Good Credit26.99%
Wells Fargo Travel Rewards Credit Cards 
Hotels.com Rewards Visa14.99% – 22.99%,
Discover Travel Rewards Credit Cards 
Discover Travel11.99% – 22.99%

Average Credit Card APR by Credit Score

When determining your qualified credit card interest rate, lenders emphasize your credit score. As a result, a high or low score can make or break the APR you obtain.

For example, we found that credit card products requiring excellent credit have lower low-end APRs than options at the other side of the spectrum. Moreover, unsecured credit cards designed for Americans with good credit often have more than 20% flat APRs.

Likewise, secured credit cards — which require you to post collateral — also skip the APR ranges and include flat rates. Furthermore, all of the options in our study have APRs north of 20%.

Credit Card:Credit Level:Purchase APR:
Capital One VentureOne RewardsExcellent14.99%  –  24.99%
Capital One Quicksilver RewardsExcellent14.99%  –  24.99%
Capital One Venture RewardsExcellent15.99%  –  23.99%
Capital One Venture X RewardsExcellent16.99%  –  23.99%
Capital One VentureOne Rewards for Good CreditGood26.99%
Capital One Quicksilver Rewards for Good CreditGood26.99%
Capital One SavorOne Rewards for Good CreditGood26.99%
Citi SecuredRebuilding22.49%
BankAmericard SecuredRebuilding22.99%
Discover SecuredRebuilding22.99%
Bank of America Customized Cash Rewards SecuredRebuilding23.99%
Bank of America Unlimited Cash Rewards SecuredRebuilding23.99%
Capital One Platinum SecuredRebuilding24.99%
Capital One Quicksilver Secured Rewards CardRebuilding26.99%

Average Credit Card APR at U.S. Commercial Banks

The latest data from the Fed shows that the average credit card interest rate charged on all accounts by U.S. commercial banks is 14.51%. Moreover, on accounts assessed interest, the figure increases to 16.44%. U.S. commercial banks’ average credit card interest rates on all accounts and accounts assessed interest have increased by 2% and 12%, respectively, since 2010.

Period:All Accounts:Accounts Assessed Interest:
2010:Q114.26%14.67%
2010:Q213.84%14.48%
2010:Q313.59%14.22%
2010:Q413.44%13.67%
2011:Q113.44%13.44%
2011:Q212.89%13.06%
2011:Q312.28%13.08%
2011:Q412.36%12.78%
2012:Q112.34%13.04%
2012:Q212.06%12.76%
2012:Q311.95%13.21%
2012:Q411.88%12.81%
2013:Q111.94%13.02%
2013:Q211.95%12.76%
2013:Q311.88%13.11%
2013:Q411.85%12.89%
2014:Q111.83%13.14%
2014:Q211.83%12.74%
2014:Q311.82%13.18%
2014:Q411.99%13.68%
2015:Q111.98%13.53%
2015:Q212.04%13.49%
2015:Q312.10%13.93%
2015:Q412.22%13.70%
2016:Q112.31%13.51%
2016:Q212.16%13.35%
2016:Q312.51%13.76%
2016:Q412.41%13.61%
2017:Q112.54%13.86%
2017:Q212.77%14.00%
2017:Q313.08%14.89%
2017:Q413.16%14.99%
2018:Q113.63%15.32%
2018:Q214.14%15.54%
2018:Q314.38%16.46%
2018:Q414.73%16.86%
2019:Q115.09%16.91%
2019:Q215.13%17.14%
2019:Q315.10%16.97%
2019:Q414.87%16.88%
2020:Q115.09%16.61%
2020:Q214.52%15.78%
2020:Q314.58%16.43%
2020:Q414.65%16.28%
2021:Q114.75%15.91%
2021:Q214.61%16.30%
2021:Q314.54%17.13%
2021:Q414.51%16.44%

How Do I Reduce My Credit Card APR?

While credit card companies determine your APR by assessing your overall creditworthiness, we have a few tips to get you on the fast track to a lower interest rate.

Build a Reliable Credit History:

While somewhat obvious, building a reliable credit history can make you more attractive in the eyes of lenders. The first step is to raise your FICO Score to at least 670. Then, when using existing credit cards, keep monthly purchases to less than 30% of your balance limit.

Shop Around for the Best Offers:

With so much competition in the lending space, institutions often make interest rate concessions to attract new clients. While some lenders may reject your application, others often go out of their way to provide unique offers to secure your business.

Talk to Your Financial Institution:

Often overlooked as a way to lower your credit card APR, simply asking can often move the needle. If you have an existing relationship with an institution and are known as a long-term and loyal customer, they’ll usually work with you to avoid losing your business. When calling, explain your circumstances and ask if they can help. Moreover, if you have readily available offers from other institutions, they’re more likely to accommodate your request.

How We Conducted The Study

To determine the average credit card interest rate in the U.S., we analyzed the product offerings and terms at seven of the largest credit card issuers in the U.S. After which, we parsed the data by several metrics to provide the broadest depiction of what Americans confront in today’s marketplace.

Our goal is to consolidate the information and present the findings in a way that’s easy to understand by parsing through the latest data from reliable sources. If you enjoyed the study, please provide your feedback. Moreover, if there is anything that we missed or anything that you believe needs updating, please let us know, and we will respond promptly.

Conclusion

While the Fed reduced interest rates to help shore up Americans’ finances during the coronavirus pandemic, the largest credit card issuers weren’t so kind. Moreover, with high financing costs poised to move even higher in 2022 — once the Fed begins its expected rate hike cycle — you should consider other types of loans before obtaining a credit card.

For example, U.S. commercial banks charge an average interest rate of 9.39% on 24-month personal loans. As a result, an unsecured personal loan is a more attractive financing option than unsecured credit card debt.

Sources

American Express

Chase

Bank of America

Citigroup

Capital One

Wells Fargo

Discover

MEET THE AUTHOR

ElitePersonalFinance

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