2025 Average Credit Card Interest Rates: Latest Trends and Insights

As of 2024, the median credit card interest rate tracked from a comprehensive database of over 300 cards remains above the Federal Reserve's average, reflecting current market dynamics.

19.49% Median Interest Rate

The median interest rate for credit cards in 2024 stands at 19.49%, derived from advertised rates across a broad selection of popular credit card offers.

This median rate exceeds the Federal Reserve’s average, which tends to be lower due to its narrower sample size and focus on the lowest advertised rates. Given the average U.S. FICO score of 703, this median value more accurately reflects the rates most consumers will encounter, as excellent credit scores qualifying for the lowest rates are less common.

Key Highlights

• Median credit card interest rate is 19.49% based on extensive market data
• Interest rates heavily depend on the applicant’s creditworthiness
• Lowest rates are reserved for consumers with excellent credit scores

Credit card interest rates are expected to remain relatively stable in the near term. Most issuers use variable rates tied to the Federal Reserve’s Prime Rate, currently at 3.25%, the lowest since 2015. While no immediate changes to the benchmark federal funds rate are anticipated, economic shifts due to ongoing global events could influence future adjustments.

The primary determinant of individual credit card rates is credit quality, with better scores securing lower rates. Additional factors include card type and issuer-specific risk pricing policies.

Our data tracks average advertised rates for new applicants, presenting a comprehensive view segmented by credit quality, card type, and issuer.

Interest Rates by Credit Quality

Credit quality, primarily assessed via FICO scores, significantly impacts interest rates. The following chart illustrates rate variations across different credit score brackets.

Credit score ranges define credit quality levels, influencing the interest rates offered. Responsible credit behavior, such as timely payments and maintaining utilization below 30%, is essential for building or rebuilding credit. Secured credit cards offer a strong starting point for those new to credit.

Interest Rates by Card Type

• Rewards Cards: Offer points, miles, or cash back on purchases
• Student Cards: Tailored for limited credit history and educational needs
• Secured Cards: Require a security deposit that sets the credit limit
• Business Cards: Designed for small business owners with expense tracking and rewards

Interest Rates by Issuer

Different issuers apply varied risk-based pricing strategies, leading to a range of advertised interest rates for customers based on their credit profiles.

Prime Rate Trends

Credit card rates typically track the Prime Rate plus a margin. The Prime Rate currently stands at 3.25%, reflecting Federal Reserve adjustments aimed at economic stimulus since 2019.

Delinquency Rate Trends

Credit card delinquency rates for accounts overdue by 90 days or more have remained below 3%, with recent declines linked to reduced spending and stimulus payments.

Credit Card Debt Trends

Total consumer revolving credit card debt recently dipped below $1 trillion for the first time since 2017, influenced by pandemic-related spending changes.

Methodology

Our analysis covers over 300 credit cards from 32 major banks and issuers. We calculate average interest rates by taking the midpoint of advertised rate ranges, segmented by credit quality, card type, and issuer to provide an accurate market snapshot.

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