The average credit card interest rate by credit score and card - Business Insider - Business Insider

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• In the first quarter of 2020, the average credit card interest rate in the US was 15.09%, according to data from the Federal Reserve. 
• The type of credit card you plan to get and your credit score will affect the total amount of interest you could pay if you carry a balance on your credit card.
• According to CFPB data, those with the best credit scores paid the least to borrow in 2018. Data from S&P Global shows that rewards credit cards have the highest interest rates.
• If you plan to pay off your credit card in full each month, your interest rate shouldn't be a concern. You'll only pay interest if you don't pay your card in full. 
• Read more personal finance coverage »

The average credit card APR in 2020 is 15.09%, according to data from the Federal Reserve. But, your own credit card interest rate is likely to be different. 

Credit cards come with a cost of borrowing: an annual percentage rate, or APR. This is the amount you'll pay for credit. With a credit card, you'll only pay interest on an unpaid balance after your billing cycle is over. Pay off your card in full each month, and you won't pay any interest. 

However, if you don't pay off your balance in full each month, it can get expensive. It's not unusual for a card to carry an APR in the 20% range, which means a balance can continue to grow and snowball for each month it stays on your card. According to Experian, consumers had a total of $829 billion of credit card debt in 2019. 

Outside of paying off your card, there are a few factors that can influence the rate attached to your card, including your credit score and the type of card you have. Here's how these factors influence your interest rate.

Average interest rates by credit score

Higher credit scores get lower interest rates

Like getting a loan, the interest rate attached to your credit card largely depends on your credit score. Credit scores evaluate your past credit activity on a scale of 300 to 850 based on past borrowing, repayment history, available credit, and your mix of credit accounts. Lenders use them to evaluate how trustworthy you are as a borrower, and whether they should lend to you, so generally the higher your credit score, the lower your credit card's interest rate. Those with higher credit scores will also be more likely to qualify for cards with 0% introductory interest rates. 

According to data from the CFPB's Consumer Credit Card Market Report, the average total interest paid by consumers increases with lower credit scores. The CFPB measures this with an effective interest rate — calculated as the total amount of interest charged per year divided by the total balance at the end of the cycle — to create a metric of how much interest was actually paid by consumers at each credit level. Data from 2018 showed that consumers with the best credit paid the lowest effective interest rates, and vice versa.

Credit score category	Effective interest rate
Deep Subprime (579 or lower)	21.0%
Subprime (580 - 619)	20.5%
Near Prime (620 - 659)	19.0%
Prime (660 - 719)	16.5%
Super Prime (720 or greater)	13.5%
Overall	15.6%

Interest rates only apply to unpaid balances

If you pay your credit card in full each month, credit cards can be valuable tools to earn airline miles, earn cash back, and build your credit history, with no interest involved.

If you don't pay your credit card bill in full each month, the interest rate will apply, and add to the total amount you owe. It can get out of hand quickly, and the debt your card accumulates negates any of the rewards you could earn. 

Paying your credit card in full means you'll never have to worry about paying more for your purchases than you need to, and can help you earn rewards to enjoy as well. While credit card interest rates can seem high, they're non-existent if you pay your account in full each month and use your card responsibly. 

Average interest rates by type of credit card

Premium credit cards tend to carry higher APRs

The type of card you have can affect the amount of interest you could pay if you carry a balance. Data from S&P Global shows that for three main types of credit cards, a higher interest rate comes with bigger perks. 

Credit card type	APR
Classic credit card	11.74%
Platinum credit card	12.65%
Rewards credit card	13.25%

Some of the name-brand rewards cards you may be familiar with may also have higher interest rates. Here are a few favorites, and the interest rates they carry. Remember that credit card companies can change interest rates, and that only people with the best credit scores will qualify for the lowest interest rates. 

Travel credit cards

Airline and travel credit cards can have higher interest rates than the typical card because they offer valuable rewards if used correctly. These credit cards are good options for anyone who wants to earn perks like miles to book award flights, but doesn't plan to keep a balance on their card.

Credit card	APR range
Delta SkyMiles® Blue American Express Card	15.74% to 24.74% variable APR
Chase United℠ Explorer Card	16.49% to 23.49% Variable
American Airlines AAdvantage MileUp℠ Card	15.99% - 24.99% (Variable)
Capital One® Venture® Rewards Credit Card	17.24% to 24.49% variable
Southwest Rapid Rewards® Plus Credit Card	15.99% - 22.99% Variable

Cash-back cards

Cash-back cards offer the most flexible reward of all: cash. Generally, these cards earn a percentage back of total purchases, around 2%. The money can then be applied back to your balance, or even cashed out and put toward other goals.

The interest rates for cash back credit cards tend to start a little bit lower than airline credit cards. Here are the interest rates on some of the top rated cash back credit cards on the market today. 

Credit card	APR range
Bank of America® Cash Rewards credit card	13.99% - 23.99% variable
Wells Fargo Propel American Express® card	14.49% to 24.99% variable
Chase Freedom Unlimited®

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