The average credit card interest rate was 20.92% in the first quarter of 2023, according to Federal Reserve data.
The type of card and your credit score will affect the interest rate you’ll pay on any balances.
Higher credit scores bring lower interest rates, and reward cards have the highest interest rates.
Read Insider’s guide to the best zero-interest credit cards.
The average credit card APR was a whopping 20.92% in the first quarter of 2023, 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%…
This article was written by Liz Knueven,Joseph Hostetler, CEPF and originally published on www.businessinsider.com