Average Credit Card Interest Rates by Card Type

Typical credit card APR by card type — from low-interest and rewards cards to store and student cards. ✓ Editorial averages

✔ Reviewed by the True Value Calc editorial team 🗓 Last updated January 2026 📚 Source: Federal Reserve & public issuer data
22.8%
Average card APR
18.0%
Lowest tier (low-interest)
29.0%
Highest tier (store cards)
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Average APR by Card Type — Chart

Credit Card APR by Type

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Card type Average APR
Low-interest / credit-union18.0%
Business cards20.0%
Balance-transfer cards21.0%
Rewards / cash-back cards22.0%
Travel cards22.5%
All cards (accounts assessed interest)22.8%
Airline cards23.5%
Student cards24.5%
Secured cards25.5%
Store / retail cards29.0%

Why Credit Card Interest Is So High

Credit cards carry some of the highest interest rates of any consumer borrowing — averaging around 21–23% for accounts that carry a balance. Because cards are unsecured (no collateral), issuers price in higher default risk, plus the cost of rewards, fraud protection and servicing. Rates vary widely by type: store and retail cards are typically the most expensive at nearly 30%, while low-interest and credit-union cards can be several points cheaper.

Most card APRs are variable and tied to the prime rate, so they rise and fall with Federal Reserve decisions. The best way to beat card interest is to pay the full statement balance each month (owing $0 in interest), or use a 0% balance-transfer offer to pause it. See how fast you can clear a balance with our credit card payoff calculator and debt avalanche calculator.

APR vs Interest Rate

For credit cards, the APR is effectively the yearly interest rate. These are US editorial averages; card rates in the UK, Canada and Australia differ, but the same principle applies — carrying a balance is expensive, so paying in full each month is the cheapest way to use a card.

Credit Card Rates — FAQ

The average APR on US credit cards that carry a balance is around 21–23%, among the highest of any consumer borrowing. Rates vary widely by card type — student, secured and store cards often run higher, while low-interest and credit-union cards can be lower.
Credit cards are unsecured, so lenders price in higher default risk, plus the cost of rewards, fraud and servicing. Most card APRs are variable and tied to the prime rate, so they move up and down with Federal Reserve rate changes.
Pay the full statement balance each month to owe zero interest, use a 0% balance-transfer offer to pause interest, or prioritise the highest-APR balance first. Our credit card payoff calculator shows how fast different payments clear the debt.
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