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- In the first quarter of 2020, the
average credit card interest rate in the US was 15.09%, according to data from the Federal Reserve. - The type of
credit card you plan to get and your credit score will affect the total amount of interest you could pay if you carry a balance on your credit card. - According to CFPB data, those with the best credit scores paid the least to borrow in 2018. Data from S&P Global shows that rewards
credit cards have the highest interest rates. - If you plan to pay off your credit card in full each month, your
interest rate shouldn't be a concern. You'll only pay interest if you don't pay your card in full.
The average credit card APR in 2020 is 15.09%, according to data from the Federal Reserve. But, your own credit card interest rate is likely to be different.
Credit cards come with a cost of borrowing: an annual percentage rate, or APR. This is the amount you'll pay for credit. With a credit card, you'll only pay interest on an unpaid balance after your billing cycle is over. Pay off your card in full each month, and you won't pay any interest.
However, if you don't pay off your balance in full each month, it can get expensive. It's not unusual for a card to carry an APR in the 20% range, which means a balance can continue to grow and snowball for each month it stays on your card. According to Experian, consumers had a total of $829 billion of credit card debt in 2019.
Outside of paying off your card, there are a few factors that can influence the rate attached to your card, including your credit score and the type of card you have. Here's how these factors influence your interest rate.
Average interest rates by credit score
Higher credit scores get lower interest rates
Like getting a loan, the interest rate attached to your credit card largely depends on your credit score. Credit scores evaluate your past credit activity on a scale of 300 to 850 based on past borrowing, repayment history, available credit, and your mix of credit accounts. Lenders use them to evaluate how trustworthy you are as a borrower, and whether they should lend to you, so generally the higher your credit score, the lower your credit card's interest rate. Those with higher credit scores will also be more likely to qualify for cards with 0% introductory interest rates.
According to data from the CFPB's Consumer Credit Card Market Report, the average total interest paid by consumers increases with lower credit scores. The CFPB measures this with an effective interest rate — calculated as the total amount of interest charged per year divided by the total balance at the end of the cycle — to create a metric of how much interest was actually paid by consumers at each credit level. Data from 2018 showed that consumers with the best credit paid the lowest effective interest rates, and vice versa.
| Credit score category | Effective interest rate |
| Deep Subprime (579 or lower) | 21.0% |
| Subprime (580 - 619) | 20.5% |
| Near Prime (620 - 659) | 19.0% |
| Prime (660 - 719) | 16.5% |
| Super Prime (720 or greater) | 13.5% |
| Overall | 15.6% |
Interest rates only apply to unpaid balances
If you pay your credit card in full each month, credit cards can be valuable tools to earn airline miles, earn cash back, and build your credit history, with no interest involved.
If you don't pay your credit card bill in full each month, the interest rate will apply, and add to the total amount you owe. It can get out of hand quickly, and the debt your card accumulates negates any of the rewards you could earn.
Paying your credit card in full means you'll never have to worry about paying more for your purchases than you need to, and can help you earn rewards to enjoy as well. While
Average interest rates by type of credit card
Premium credit cards tend to carry higher APRs
The type of card you have can affect the amount of interest you could pay if you carry a balance. Data from S&P Global shows that for three main types of credit cards, a higher interest rate comes with bigger perks.
| Credit card type | APR |
| Classic credit card | 11.74% |
| Platinum credit card | 12.65% |
| Rewards credit card | 13.25% |
Some of the name-brand rewards cards you may be familiar with may also have higher interest rates. Here are a few favorites, and the interest rates they carry. Remember that credit card companies can change interest rates, and that only people with the best credit scores will qualify for the lowest interest rates.
Travel credit cards
Airline and travel credit cards can have higher interest rates than the typical card because they offer valuable rewards if used correctly. These credit cards are good options for anyone who wants to earn perks like miles to book award flights, but doesn't plan to keep a balance on their card.
| Credit card | APR range |
| Delta SkyMiles® Blue American Express Card | 15.74% to 24.74% variable APR |
| Chase United℠ Explorer Card | 16.49% to 23.49% Variable |
American Airlines AAdvantage MileUp℠ Card | 15.99% - 24.99% (Variable) |
| Capital One® Venture® Rewards Credit Card | 17.24% to 24.49% variable |
| Southwest Rapid Rewards® Plus Credit Card | 15.99% - 22.99% Variable |
Cash-back cards
Cash-back cards offer the most flexible reward of all: cash. Generally, these cards earn a percentage back of total purchases, around 2%. The money can then be applied back to your balance, or even cashed out and put toward other goals.
The interest rates for cash back credit cards tend to start a little bit lower than airline credit cards. Here are the interest rates on some of the top rated cash back credit cards on the market today.
| Credit card | APR range |
| Bank of America® Cash Rewards credit card | 13.99% - 23.99% variable |
| Wells Fargo Propel American Express® card | 13.99% to 25.99% variable |
| Chase Freedom Unlimited® | 14.99%–23.74% variable APR |
| Blue Cash Preferred® Card from American Express | 12.99% to 23.99% variable APR |
| Capital One® Savor® Cash Rewards Credit Card | 15.99% - 24.99% variable APR |
Student credit cards
Created specifically for college students, these cards are best for young adults who haven't built much credit yet and can be secured with a cash deposit up front. Slightly more forgiving, these student credit cards can be a great way to build credit while still in school, but can have high interest rates. While some borrowers with the best credit scores will see rates around 12.99%, interest rates could be as high as 26%.
| Credit card | APR range |
| Journey® Student Rewards from Capital One® | 26.99% variable APR |
| Citi Rewards+ Student Card | 14.49% - 24.49% variable APR based on your creditworthiness |
Deserve® EDU Mastercard for Students | 18.74% Variable |
Balance transfer cards
Balance transfer cards allow you to consolidate credit card debt onto one card. They can also be used to finance large purchases for a short amount of time. One popular type of these cards is a 0% interest credit card, which allows borrowers to finance large purchases or consolidate credit card debt with no interest for several months. But, these cards won't be interest-free forever: Rates go up after the introductory period is over.
During the introductory period, interest won't accrue on your balance. If you pay off your card in full by the time the offer is up, it can be a good alternative to a personal loan. After that intro period is over, you'll pay a fairly typical interest rate.
Here are a few examples of how this works with a few popular cards that have them.
| Credit card | Introductory APR | Permanent APR |
| Chase Freedom® | 0% APR for the first 15 months on both purchases and balance transfers | 14.99%–23.74% variable APR |
| Citi Simplicity® Card | 0% APR for the first 21 months for balance transfers made within the first four months | 14.74% - 24.74% (Variable) |
| Citi® Double Cash Card | 0% APR for the first 21 months for balance transfers made within the first four months | 13.99% - 23.99% APR (Variable) |
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