Average Credit Card Interest Rates by Credit Score

The average credit card interest rate is 22.15% for accounts subject to interest, according to the most recent Federal Reserve data from May 2026. But that number doesn’t tell the full story of what you’ll actually pay.

Your own annual percentage rate (APR) depends on your credit score, the card type and the issuer. A difference of just a few percentage points in APR can add up to thousands of dollars in interest over time, which makes it crucial to understand how your credit score affects the rate you’re likely to receive.

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This guide breaks down what those averages mean, what counts as a good APR and how your credit score shapes the rate you are offered.

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Key Takeaways

• The average credit card interest rate is 22.15% on accounts assessed interest as of May 2026: Across all accounts, the average is 20.94%, per Federal Reserve data.

• Your actual APR depends on more than your score: Issuers price based on your full credit profile — payment history, debt, income and utilization.

• Rates fall into broad risk tiers: Excellent credit sees roughly 18% to 23%, good credit 22% to 27%, and fair or poor credit 25% to 30%+.

• A few points cost real money: On a $5,000 balance at $200 a month, moving from 20% to 30% APR adds more than $1,400 in interest and seven months of payments.

• APR only matters if you carry a balance: Pay in full each month and you avoid interest entirely.

• You can often lower your rate: Ask your issuer, transfer to a 0% intro APR card, or improve your credit profile over time.

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Quick Answer: Average Credit Card APRs by Credit Score

Here are the numbers to know right now.

• All credit card accounts: 20.94% average APR in May 2026

• Accounts accruing interest: 22.15% average APR in May 2026

• Source: Federal Reserve G.19 Consumer Credit report, released July 8, 2026

Credit card interest rates aren’t assigned using a simple credit score chart. Instead, issuers use your overall credit profile — factors such as payment history, debt levels, income and credit score — to decide what rate to offer.

Federal Reserve data show the average credit card APR across all accounts assessed interest is currently in the low-20% range. Within that, borrowers tend to fall into broader pricing tiers based on credit risk:

These ranges reflect how credit card pricing typically works across major issuers, based on Federal Reserve credit card interest rate data and Consumer Financial Protection Bureau research on risk-based lending. Because issuers price credit cards based on internal risk models rather than publicly standardized credit score bands, exact APRs will vary significantly even among borrowers with similar credit scores.

What Is the Average Credit Card Interest Rate? 

There’s no single “official” credit card interest rate because different organizations measure APRs differently. Some track rates on new credit card offers, while others measure what consumers are actually paying on existing balances.

For example:

• The Federal Reserve reports the average APR on accounts assessed interest in the low-20% range

• Some industry estimates of new credit card offers tend to fall slightly higher or lower, depending on timing and methodology

The key takeaway: Credit card interest rates are consistently high compared to most other types of borrowing, and your personal rate depends heavily on your credit history — not just the market average.

What Is APR?

APR stands for annual percentage rate. It’s the yearly cost of borrowing money on your credit card, shown as a percentage. If you pay your full statement balance every month, you do not pay interest. If you carry a balance, the card issuer charges you interest based on your APR. A lower APR means you pay less to borrow. A higher APR means the same balance costs you more over time.

What Is a Good Credit Card APR?

A good credit card APR is any rate below the national average. Right now, that means anything under 22.15% is competitive for most cardholders. Here is a simple way to size up your rate.

• Excellent: Below 18%

• Good: 18% to 21%

• Average: 21% to 24%

• High: Above 24%

If you pay your balance in full each month, your APR does not matter as much — you avoid interest either way. If you carry a balance, aim for the lowest APR you can qualify for.

Average Credit Card Interest Rates by Credit Profile

Credit card interest rates are not set using a standardized credit score chart, and issuers do not publish official APRs by FICO score band. Instead, credit card pricing is based on risk, meaning lenders evaluate your overall credit profile to determine the rate you’re offered.

However, borrowers tend to fall into general pricing tiers based on credit quality. These tiers reflect how credit card issuers typically structure risk-based pricing across their portfolios, as described in Federal Reserve data and Consumer Financial Protection Bureau research.

In general:

• Borrowers with strong credit profiles are more likely to qualify for the lowest available APRs

• Borrowers with moderate credit profiles tend to receive a wider range of offers, often clustered in the mid-to-high 20% range

• Borrowers with weaker credit profiles typically see the highest APRs and fewer low-rate options

These differences reflect how lenders price unsecured credit. Since credit cards are not backed by collateral, issuers charge higher interest rates when they perceive higher repayment risk.

While your credit score is an important factor, it is only one part of the broader credit evaluation used to determine your final APR.

Why Credit Score Matters for Your APR

Credit card issuers don’t know you personally when you apply. Instead, they use your credit profile to estimate risk.

Borrowers with stronger credit histories — especially those with consistent on-time payments and low credit utilization — are generally offered lower interest rates. Borrowers with weaker credit profiles are more likely to receive higher APRs.

From the lender’s perspective, higher rates help offset the increased risk that a balance may not be repaid. This is why two people with similar incomes can still receive very different credit card offers.

How Credit Card APRs Are Set 

Most credit card interest rates start with the prime rate, which typically moves in line with changes to the Federal Reserve’s benchmark interest rate.

From there, card issuers add a margin to the prime rate to determine your final APR. This margin varies based on the card and the applicant’s overall credit profile. That’s because credit cards are unsecured loans, meaning there’s no collateral backing the balance. If a borrower doesn’t repay, the issuer has no asset — like a house or car — to recover losses.

To account for that risk, issuers price cards using internal underwriting models that consider factors such as credit history, debt levels, income, and perceived repayment risk. As a result, even small changes in your credit profile can lead to meaningful differences in the APR you’re offered.

What Higher APRs Cost You in Real Dollars 

A few percentage points may not sound like a big deal when you're comparing credit card offers. But if you’re carrying a balance, the extra points can become expensive.

For example, on a $5,000 credit card balance with fixed monthly payments of $200, a higher interest rate can significantly increase both the time it takes to pay off the credit card debt and the total interest paid.

$5,000 balance at 20% APR

• Interest paid: $1,522

• Time to pay off: 33 months

$5,000 balance at 25% APR

• Interest paid: $2,136

• Time to pay off: 36 months

$5,000 balance at 30% APR

• Interest paid: $2,944

• Time to pay off: 40 months

At a higher APR, more of each payment goes toward interest rather than reducing the principal balance. This slows down repayment and increases the total cost of borrowing.

That's why borrowers who carry a balance should pay close attention to APR. A few percentage points can translate into years of extra payments and thousands of dollars in additional interest — especially if you’re only paying the minimum due.

Why New Credit Card Offers and Existing Account Rates Can Differ

Credit card interest rates don’t always reflect a single number across the market because they measure different things depending on the source. For example, rates shown on new credit card offers represent what issuers are currently advertising to new applicants. These offers can vary based on promotional pricing, applicant credit profiles and product type.

Rates on existing accounts reflect what current cardholders are actually paying on balances they already carry.

The Federal Reserve tracks both types of data and typically finds differences between advertised offer rates and the average APR charged across existing accounts. This gap exists because promotional offers, account-specific pricing and long-standing customer relationships can all influence the final rate a borrower receives.

What Else Besides Credit Score Affects Your APR 

Two people with the same credit score can still receive different APRs. While a credit score is one of the most important factors in determining your APR, it’s not the only one.

Card issuers also evaluate your full financial profile, including income, existing debt, credit utilization and payment history. In many cases, credit cards are approved with a range of possible APRs rather than a single fixed rate. That means two borrowers with similar credit scores can still receive different interest rates depending on how their overall profile is assessed.

Other factors, such as the type of card you apply for — rewards cards, balance transfer cards or no-interest cards — can also influence the rate you’re offered.

How To Get a Lower Credit Card Interest Rate

If your credit card APR feels too high, there are several ways you may be able to reduce it over time.

Improve Your Credit Profile

A stronger credit profile can help you qualify for cards with lower rates in the future. Credit card debt affects your credit score, and high credit utilization can hurt it. Focusing on paying off your debt can boost your credit score.

Consider a Balance Transfer Option

A balance transfer credit card with a 0% introductory APR offer may help reduce interest costs while you pay down existing debt.

Ask Your Issuer for a Lower Rate

It’s often possible to request a lower APR directly from your card issuer, especially if you’ve built a history of on-time payments or improved your credit since opening the account.

Use Competing Offers as Leverage

When negotiating, it can help to mention lower-rate offers you've received from other issuers and point to your history of on-time payments.

Bottom Line 

The average credit card interest rate can help you understand the broader market, but your actual APR will depend on factors such as your credit score, income and overall credit profile.

A 20% APR and a 25% APR may not seem that far apart when you're comparing credit card offers. But as the examples above show, those differences can add up over time.

Whether you're shopping for a new card or evaluating one you already have, it helps to know what rates borrowers with similar credit profiles are receiving and what options are available if you want a lower APR.

Average Credit Card Interest Rates by Credit Score FAQs

What is the average credit card interest rate?

The average credit card interest rate is 20.94% for all credit card accounts as of May 2026, according to the Federal Reserve's G.19 Consumer Credit report. For accounts that carry a balance and accrue interest, the average APR is 22.15%. 

How does my credit score affect my APR?

Your credit score directly shapes the APR a card issuer offers you, with higher scores generally earning lower rates. Lenders use your score to gauge how likely you are to repay what you borrow. Scores in the excellent range often qualify for the lowest advertised APRs. Scores in the fair or poor range often come with the highest APRs or require a secured card.

What is a good APR on a credit card?

A good credit card APR is any rate below the current national average of 22.15%. If you have excellent credit, you can often qualify for rates well under that number. If you pay your balance in full every month, the APR matters less because you avoid interest charges entirely.

Why is my credit card APR so high?

Credit card APRs are high because most cards use variable rates tied to the prime rate, which has remained elevated. The Federal Reserve's rate-hiking cycle from around 14.5% in early 2022 to above 21% by 2024, per Federal Reserve data. Rates have remained elevated even as the Fed paused. Your specific rate also reflects your credit score, the card type and the issuer's pricing.

Can I lower my credit card APR?

Yes, you can sometimes lower your credit card APR by calling your card issuer and requesting a rate reduction. You can also transfer a balance to a card with a 0% intro APR offer, pay down debt to lower your credit utilization or improve your credit score over time to qualify for better rates.

Key Terms

• Average credit card interest rate: The typical APR across cards — 22.15% on accounts assessed interest as of May 2026.

• Annual percentage rate (APR): The yearly cost of borrowing on your card, shown as a percentage.

• Prime rate: The benchmark rate, tied to the Fed's rate, that most variable card APRs start from.

• Margin: The percentage an issuer adds to the prime rate based on your credit risk.

• Risk-based pricing: The practice of setting your APR according to your overall credit profile.

• Credit utilization: The share of your available credit in use, a key factor in your rate.

• Unsecured credit: Borrowing not backed by collateral, which is why card APRs run high.

• Balance transfer card: A card with a 0% intro APR that can lower interest costs while you pay down debt.

Sources

• Federal Reserve: Consumer Credit (G.19) 

• CFPB: Credit card data and risk-based pricing research 

• CFPB: How is my credit card APR determined? 

• myFICO: What Is a Credit Score? 

Summary generated by AI, verified by MoneyLion editors

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