Survey: Average card APR jumps to record 15.27 percent


Dec. 21, 2016: The average APR on new credit card offers rose to an all-time high Wednesday after the Federal Reserve increased its benchmark interest rate, according to the Weekly Credit Card Rate Report.

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The average APR on new credit card offers rose to an all-time high Wednesday after the Federal Reserve increased its benchmark interest rate last week, according to the Weekly Credit Card Rate Report.

The national average APR jumped to 15.27 percent, the highest average APR that has recorded since it

began tracking rates in mid-2007. Previously, the highest national average recorded was 15.22 percent.

The Federal Reserve spurred this week’s rate change by raising its benchmark interest rate, the federal funds rate, by 0.25 percent. When the federal funds rate increases, lenders typically change rates on variable rate cards by the same amount.

Already, several major card issuers, including American Express, Wells Fargo and U.S. Bank, have responded to the Fed change by increasing card APRs. Among the 100 cards tracked by, 26 increased rates by 0.25 percent.

Interest rates are likely to keep rising
The national average APR will likely jump higher overthe next year as the Federal Reserve continues to ratchet up the federal funds rate. Most Federal Reserve policymakers project the Federal Reserve will likely raise rates at least three times in 2017. That will have an appreciable impact on consumers’ credit card balances since card issuers also raise rates on existing balances when the federal funds rate rises.

Cardholders with the biggest balances will bear the brunt of the interest rate increases; but even cardholders with modest

balances will see a noticeable change.

According to information provided by TransUnion to, the average card balance will rise by just $6.45 a month after the latest quarter-point rate hike; however, some cardholders could be asked to pay an extra $25 to $50 or more a month — a huge increase for borrowers who are already struggling to pay their bills.

With such a big change in card balances, TransUnion expects that more consumers will fall behind on payments as their credit card costs continue to increase. “We call it a payment shock, because you can’t control it,” said TransUnion’s Nidhi Verma in an interview with

In the short-term, the national average APR on new credit card offers is also likely to inch higher over the several weeks as more issuers adjust to the new federal funds rate and increase card rates. When the Federal Reserve changed the federal funds rate in December 2015, nearly all of the cards included in the database increased rates by the same amount. Several major card issuers, including Bank of America, Chase, Discover and Barclaycard, have yet to adjust rates this month.

Average rates on new card offers are already at record highs; as a result, many consumer credit card applicants are being asked to pay substantially more to carry a balance than just a few years ago. In December 2014, for example, the average APR ended the year at 14.91 percent. Toward the end of December 2009 – a few months before the Credit CARD Act of 2009 went into effect, causing rates on new offers to increase – the national average APR stood at 12.97 percent.’s Weekly Rate Report
Avg. APRLast week 6 months ago
National average15.27%15.20%15.18%
Low interest12.09%12.00%11.98%
Cash back15.41%15.38%15.32%
Balance transfer14.51%14.44%14.38%
Instant approval17.88%17.86%18.04%
Bad credit22.92%22.86%22.56%
Methodology: The national average credit card APR is comprised of 100 of the most popular credit cards in the country, including cards from dozens of leading U.S. issuers and representing every card category listed above. (Introductory, or teaser, rates are not included in the calculation.)
Updated: December 21, 2016

See related:APRs go up as Fed raises interest rates, Fed: Card balances up $2.3 billion in October

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Dec. 7, 2016: The average APR on new card offers held still Wednesday despite multiple small rate changes, according to the Weekly Credit Card Rate Report.

Published: December 7, 2016

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Credit Card Rate Report Updated: August 21st, 2019
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