Rate Report

Average credit card interest rates: Week of April 8, 2020

The average credit card interest rate falls to 16.14%, which is the lowest it's been in 28 months


The average APR on new credit card offers tumbled again this week, dropping to its lowest point since December 2017. APRs on brand-new credit cards are now more than one and a half points lower, on average, than they were this time last year.

The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.

The average credit card interest rate is 16.14%.

The average APR on new credit card offers tumbled again this week, dropping to its lowest point since December 2017.

APRs on brand-new credit cards are now more than one and a half points lower, on average, than they were this time last year.

Compared to last summer, when average rates peaked at 17.8%, the difference is even more pronounced – especially for cardholders with less-than-perfect scores.

When calculates the national average interest rate, it only considers a card’s lowest possible rate. However, most general market credit cards advertise a wide range of potential interest rates, including maximum rates that are typically well above 20%.

In July 2019, the average maximum card APR stood at 25.16%. At the time, many rewards cards for consumers with good to excellent credit advertised APRs as high as 27% or more. Now, the average maximum card APR is down by more than two percentage points. It currently stands at 23.15%.

Meanwhile, the average median card APR, which is closer to what many new cardholders are charged, has fallen by 1.64 percentage points. It currently stands at 19.84%.

See related: Coronavirus: What to do if you’re unemployed and have credit card debt

Cards from major banks are more affordable than they’ve been in years

This year’s dramatic drop in new card APRs has made it easier for consumers to find a card with an affordable APR.

Consumers shopping for a new personal credit card, for example, are seeing minimum APRs on some bank-issued cards as low as 11.99%. That’s a big shift from previous years when cards with minimum APRs below 15% were becoming increasingly hard to find.

Meanwhile, the number of cards with maximum rates above 26% has also fallen sharply. Among the 100 cards included in the weekly rate report, just 12 charge maximum APRs above 26%. All 12 of the cards left standing with maximum APRs above 26% are either retail credit cards or are designed for cardholders with bad or average credit.

Chase cuts rates by one percentage point

Every week, evaluates the APRs, annual fees and promotional terms of 100 U.S. credit cards.

Chase cut rates on its line of cards by a full percentage point this week after trimming them by half a percentage point the week before. The combined one and a half-point cut on Chase-issued cards now fully reflects the Fed’s two emergency rate cuts from March.

The Federal Reserve cut rates by 1.5 percentage points last month in response to the COVID-19 pandemic, which has forced businesses across the country to close. When the Fed revises its benchmark interest rate, the federal funds rate, most lenders eventually revise new card APRs as well – at least temporarily. However, some issuers are slower than others to revise new offers.

See related: How to lower your credit card interest rate

Some card issuers hiked APRs this week

So far, most major lenders have now cut rates by one and a half percentage points in the last month. However, not all lenders are currently trimming rates.

Capital One, for example, has yet to match the Federal Reserve’s March rate cuts.

Instead, Capital One widened the range of APRs on several of its business cards this week. For example, it lowered the minimum APRs on the Capital One Spark Miles Select for Business card and the Capital One Spark Cash Select for Business card by half a percentage point and increased the cards’ maximum APRs by one and a half percentage points. Small business owners with excellent credit are now offered an APR range starting at 13.99% and maxing out at 23.99%.

Capital One also hiked the APR on the Capital One Spark Classic for Business card by 2.5 percentage points. Small business owners with average credit can now expect a 26.99% APR.

Pentagon Federal Credit Union also hiked rates this week. It increased the minimum APR on the PenFed Power Cash Rewards Visa Signature card by 3.25 percentage points. In addition, it hiked the minimum APR on the PenFed Promise Visa card by half a percentage point.

*All information about the Capital One Spark Miles Select for Business, the Capital One Spark Cash Select for Business and the Capital One Spark Classic for Business has been collected independently by and has not been reviewed by the issuer. These cards are no longer available through

Average credit card interest rates this week

Avg. APR Last week 6 months ago
National average16.14%16.27%17.40%
Low interest12.93%13.01%14.33%
Cash back16.22%16.16%17.27%
Balance transfer14.04%14.11%15.24%
Instant approval18.92%19.01%19.92%
Bad credit24.62%24.62%24.93%
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: April 8, 2020

Historic interest rates by card type

Some credit cards charge even higher rates, on average. The type of rate you get will depend in part on the category of credit card you own. For example, even the best travel credit cards often charge higher rates than basic, low interest credit cards. has been calculating average rates for a wide variety of credit card categories, including student cards, balance transfer cards, cash back cards and more, since 2007.

How to get a low credit card interest rate

Your odds of getting approved for a card’s lowest rate will increase the more you improve your credit score. Some factors that influence your credit card APR will be out of your control, such as the length of time you’ve been handling credit.

However, even if you’re new to credit or are rebuilding your score, there are steps you can take to ensure a lower APR. For example:

  1. Pay your bills on time. The single most important factor influencing your credit score – and your ability to win a lower rate – is your track record of making on-time payments. Lenders are more likely to trust you with a competitive APR – and other positive terms, such as a big credit limit – if you have a lengthy history of paying your bills on time.
  2. Keep your balances low. Lenders also want to see that you are responsible with your credit and don’t overcharge. As a result, credit scores take into account the amount of credit you’re using, compared to how much credit you’ve been given. This is known as your credit utilization ratio. Typically, the lower your ratio, the better. For example, personal finance experts often recommend that you keep your balances well below 30% of your total credit limit.
  3. Build a lengthy and diverse credit history. Lenders also like to see that you’ve been successfully using credit for a long time and have experience with different types of credit, including revolving credit and installment loans. As a result, credit scores, such as the FICO score and VantageScore, factor in the average length of your credit history and the types of loans you’ve handled (which is known as your credit mix). To keep your credit history as long as possible, continue to use your oldest credit card so your lender doesn’t close it.
  4. Call your lender. If you’ve successfully owned a credit card for a long time, you may be able to convince your lender to lower your interest rate – especially if you have excellent credit. Reach out to your lender and ask if they’d be willing to negotiate a lower APR.
  5. Monitor your credit report. Check your credit reports regularly to make sure you’re being accurately scored.The last thing you want is for a mistake or unauthorized account to drag down your credit score. You have the right to check your credit reports from each major credit bureau (Equifax, Experian and TransUnion) once per year for free through

Editorial Disclaimer

The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

What’s up next?

In Rate Report

My credit card’s concierge service helped me find toilet paper

Most often, credit card concierges are trained to assist with travel bookings, hard-to-find restaurant reservations, gift ideas and sports and theater tickets. But they can also help you find hot items you may need while you’re hunkering down at home.

See more stories
Credit Card Rate Report Updated: April 8th, 2020
Cash Back

Questions or comments?

Contact us

Editorial corrections policies

Learn more

Join the Discussion

We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

The editorial content on is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company’s business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.