Credit Card APRs: What’s a Good Rate & How to Get One?

Credit card interest rates are currently averaging nearly 20%, a figure not seen in over a decade, according to data released by Bankrate on February 11, 2026. The average APR currently sits at 19.60%, a slight decrease from a peak of 20.79% in August 2024, but still significantly higher than rates observed ten years prior.

The annual percentage rate (APR) on a credit card represents the yearly cost of borrowing, encompassing both the interest rate and any associated fees. Carrying a balance from month to month triggers these charges, making the APR a crucial factor for consumers, particularly those who don’t consistently pay their statements in full.

While a 0% APR is occasionally available, typically as a promotional offer for a limited time, the standard APR is determined by a combination of the prime rate – currently 6.75% – and a profit margin added by the credit card issuer. Bankrate reports that this margin generally falls between 12% and 13%.

The Federal Reserve’s federal funds rate influences the prime rate, and credit card APRs. Credit card companies utilize the prime rate as a benchmark, adding their own markup to establish the APR offered to consumers. Cards offering premium rewards and benefits often come with higher APRs, while those geared towards building or rebuilding credit may offer slightly lower rates, according to Yahoo Finance.

A consumer’s credit score is a significant determinant of the APR they receive. Generally, a higher credit score translates to a lower interest rate. Citizens Bank notes that credit card companies consider credit history when setting APRs.

Consumers can proactively work to improve their creditworthiness to potentially qualify for a better APR. Strategies include consistently paying bills on time, maintaining a low credit utilization rate – the amount of credit used compared to total available credit – and avoiding frequent applications for new credit, which can temporarily lower a credit score. Regularly monitoring credit reports for errors is also recommended by NerdWallet.

American Express UK notes that card fees can also impact APR, potentially resulting in a higher rate than the purchase rate.