Average Credit Card APR (and Is Yours High?)

How the average is measured

You will see two different "average" numbers, and they measure different things. The Federal Reserve reports an average across all accounts (about 21% in Q2 2026, which includes people who pay in full and are charged nothing) and a separate figure for accounts assessed interest (about 22%), meaning people actually carrying a balance. New-card offer averages quoted by comparison sites tend to run higher still, often into the mid twenties, because they reflect advertised rates rather than what the average cardholder pays.

Is your rate high?

Compare against the low twenties. If your purchase APR is meaningfully below about 21%, that is a good rate. If it is in the high twenties, that is expensive, and a penalty APR (which averages around 27%) is higher still. Remember that most card APRs are variable and tied to the prime rate, so they move when the Federal Reserve changes rates.

What you can do about a high rate

• Pay your statement balance in full, so the rate never touches you. See how to avoid credit card interest.
• Ask your issuer for a lower APR, especially with a clean payment history.
• If you carry a balance, a 0% balance transfer can pause interest while you pay it down.
• See what your current rate is costing you with the interest calculator.

There's also a proposal in Congress that would cap rates well below today's average, see what the proposed 10% rate cap would mean for a balance like yours.