Forbes Advisor’s weekly credit card rates report indicates that the current average credit card interest rate is 25.32%.
The Federal Reserve also tracks U.S. consumers’ average credit card interest rates. As of May 2025, it reported that the average credit card interest rate on accounts with balances incurring interest was 22.25%.
Keep in mind that annual percentage rates (APRs) on credit cards vary widely, and the rate you qualify for may not resemble the national average. Factors such as your credit score, age, income and other personal and financial information can impact the APR a credit card issuer offers you in a cardholder agreement.
Average Credit Card Interest Rate by Card Type
This week, the average APR for credit cards in Forbes Advisor’s database is 25.32%. Our calculation for the overall average includes airline, hotel, flexible rewards, cash back, student, 0% APR, balance transfer and business credit cards.
Methodology
Average credit card interest rates are calculated from a dataset of over 250 credit cards in the U.S. market. To calculate the average overall credit card interest rate, we use a subset of those cards—excluding business, student, secured and corporate cards. We calculate average rates for other card types using smaller, category-specific subsets.
Average Credit Card Interest Rate by Credit Score
Card issuers use your credit score to gauge their level of risk when lending to you. A good credit score—a FICO Score of 670 or more—can help you secure lower interest rates on credit cards or loans. In contrast, a bad credit score can lead to higher rates, sometimes up to or exceeding 30%, if you’re approved.
Interest rates vary by card issuer and across products, so research a card’s rates and disclosures carefully before applying. A credit card’s type can also affect its APR range, with rewards credit cards often carrying higher rates than others.
Below are estimated APRs for general-purpose credit cards based on tiers of credit scores.
Read more: Credit Cards for Bad Credit
| CREDIT SCORE RATING | APPROXIMATE FICO® SCORE RANGE | ANNUAL EFFECTIVE APR (2022) |
|---|---|---|
| Superprime | 740 and Above | 9% |
| Prime | 670-739 | 18% |
| Subprime | 580-669 | 22% |
| Deep Subprime | 579 and Below | 23% |
Source: The Consumer Credit Card Market Report, October 2023, Consumer Financial Protection Bureau
How Your Credit Card Interest Rate Can Impact You
When deciding between credit cards, picking the one with the lowest interest rate is your best bet, all else being equal. While the difference between an APR of 22% and 28% may appear minor, carrying a balance on your account could cost you thousands of dollars at that higher rate.
Your rate also directly affects how long it takes to pay off your credit card debt. A lower APR can allow you to pay down debt faster and make your balance less expensive in the long run. Let’s take a look at the following example.
Credit Card Interest Cost Comparison
| Credit Card Balance | Monthly Payment | Interest Rate (APR) | Months To Pay Off Debt | Total Interest Paid |
|---|---|---|---|---|
| $7,500 | $200 | 22% | 63 | $4,970 |
| $7,500 | $200 | 28% | 86 | $9,643 |
We recommend paying your credit card balance in full each month to avoid interest charges. By doing this, you won’t have to worry about the APR offered to you in a cardholder agreement, as you won’t be paying interest at all.
How To Lower Your Credit Card Interest Rate
If you want to pay off your credit balance faster and for less, a lower interest rate could be your ticket. Here are some strategies to reduce your credit card APR.
Balance Transfer
Opening a new credit card with a low-rate or 0% intro APR balance transfer offer could help you pay down debt. These introductory rates often span 12 to 21 months, allowing you to pay down your balance with little to no interest accruing. With careful planning, you can significantly reduce or eliminate your debt during this period.
Forbes Advisor’s balance transfer calculator can help you estimate savings by factoring in fees and interest rates. Shop around and compare multiple offers to find the best fit for your situation. Qualifying for these offers typically requires good to excellent credit—the higher, the better.
Debt Consolidation Loan
A debt consolidation loan is a type of personal loan used to pay off existing balances, particularly on high-interest debt like credit cards. If approved, you’d make a single payment toward the new loan each month. This method can help accelerate and simplify the payoff process, as well as save you money. Personal loan rates tend to be lower, on average, than on credit cards.
In addition to cost savings, consolidating revolving debt like credit cards into an installment loan could lower your credit card utilization rate and improve your score. Factors like your credit profile and debt-to-income ratio will affect your eligibility for this type of loan.
Contact Your Credit Card Issuer
The APR outlined in the cardholder agreement isn’t always the be-all and end-all. You can request a rate reduction from your card issuer, referencing offers with lower interest rates from other providers to strengthen your case.
If you plan on negotiating, having a history of on-time payments and a good credit score may work in your favor. Many card issuers are willing to have a conversation, so it’s worth asking.
How To Improve Your Credit Score
A good credit score gives you an advantage when securing the lowest interest rate on a new credit card or lowering the APR on an existing account. While improving your credit score can take time, here are some ways to boost it.
- Review your credit reports. To get a picture of your current credit, checking out your credit reports is the best place to start. By law, you can access a free credit report from each of the three major credit bureaus (Equifax, Experian and TransUnion) each year. Visit AnnualCreditReport.com to request a report.
- Take note of derogatory credit information. When reviewing your credit reports, make note of any negative information that may tarnish your credit score. While you may not be able to address some of these issues until they eventually fall off your credit report, you can focus on avoiding the same mistakes in the future.
- Dispute credit errors. Note any credit reporting mistakes or signs of fraud on your credit reports. The Fair Credit Reporting Act (FCRA) allows you to dispute any errors on your credit report with the relevant credit bureau.
- Pay down your balances. Paying off your balances lowers your credit utilization, a component of your credit score that determines 30% of your FICO Score.
- Show a positive payment history. Another essential component of your FICO Score is whether you make your credit card payments on time. Even the occasional delinquency on your report can severely affect your score, so avoid late payments to keep your score climbing.
- Open new accounts. If you have a thin credit profile or are building credit, your credit score may be lower. In these cases, choosing a new line of credit that doesn’t require a high credit score or extensive history, such as a secured credit card or a credit-builder loan, can help you improve your credit profile with a record of on-time payments. You can also ask a loved one to add you as an authorized user on their credit card account, allowing you to benefit from their credit history on your report.
- Add utility bills and other accounts to your credit reports. You may not receive credit for on-time payments of bills like utilities, subscriptions or rent, as they typically don’t appear on credit reports. You can use third-party services like Experian Boost (which is free) to share this information with credit reporting agencies. Some other services may charge fees, but it could be worth it if you aim to improve your credit for better interest rates.
Find The Best Credit Cards For 2025
No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.
Bottom Line
Although credit card APRs vary, the average APR across all credit cards in Forbes Advisor’s database is 25.32%. Use this value when considering the APR offered in your cardholder agreement, and always remember to review a card’s rate information before applying.
Consider one of the strategies available to improve your credit score and thus qualify for lower interest rates. Lastly, remember that if you pay your statement balance in full each month, you can enjoy credit card benefits without paying interest, no matter your card’s APR.
Frequently Asked Questions (FAQs)
How can you avoid interest on a credit card?
Most credit cards offer a grace period, giving you a time frame to pay off your statement balance without accruing additional interest. As long as you pay the full amount by your due date, rather than making a minimum payment, you can enjoy the benefits of your card without paying high interest charges.
What is the best 0% APR credit card?
Choosing the best 0% APR credit card is a personal decision. If you want a card with a 0% promotional APR on balance transfers or purchases, shop around and compare offers. Consider the length of the 0% introductory APR period and any features that make the card valuable to keep after the introductory period ends.
The best 0% APR credit cards offer introductory APR periods of up to 21 months. If you’re interested in transferring a balance to consolidate debt, research the balance transfer fees charged by each card.
How does credit card interest work?
If you carry a balance and only repay a portion of the money you borrow (the minimum payment or any amount less than your statement balance), you’ll owe credit card interest. If you continue to carry an outstanding balance on your account, you’ll owe your credit issuer interest monthly.
Paying your statement balance in full and on time each month can allow you to avoid paying credit card interest entirely.
What is a good interest rate on a credit card?
When looking for a good credit card interest rate, strive for an APR lower than the national average. However, even a “good” rate may pale in comparison to other financing options.
Credit cards are generally an expensive way to borrow money. Borrowers with good to excellent credit usually find lower interest rates on personal loans, home equity loans and HELOCs.
One perk of using credit cards is a chance to avoid paying interest entirely by paying your statement balance in full each month. But if you carry a balance, the interest rate becomes crucial, as credit card debt can quickly become expensive.
