The average credit card interest rate for accounts that were charged interest was 22.36% in August 2026, up from 22.15% in the second quarter, according to the Federal Reserve. On a $5,000 balance paid down at $200 a month, that rate means about 34 months and $1,793 in interest. The Fed meets again October 27–28, and many card rates are variable, so they can move.
Key takeaways
- The Fed's October 7 report puts the average card rate at 22.36% for accounts assessed interest in August 2026, and 21.19% across all accounts.
- On a $5,000 balance at 22.36% APR, a $200 monthly payment takes about 34 months and costs about $1,793 in interest.
- Raising that payment from $200 to $300 cuts the payoff to about 21 months and the interest to about $1,043.
- Many cards have a variable rate. If the index it follows, such as the prime rate, goes up, your issuer can raise the rate on your existing balance.
- The Fed's next meetings are October 27–28 and December 8–9, so card rates could change again before year-end.
If you carry a balance on a credit card, the rate you pay is the most expensive part of your debt. The Federal Reserve’s latest numbers show the average rate above 22% for people who carry a balance, so it is worth a few minutes to see what that costs you.
This guide uses only official numbers. It shows what the average rate means in dollars, why your own rate can change, and what you can do about it.
What is the average credit card interest rate?
The Fed publishes credit card rates in its G.19 consumer credit report. The latest release came out on October 7, 2026.
| Measure | Q2 2026 | August 2026 (preliminary) |
|---|---|---|
| Accounts that were charged interest | 22.15% | 22.36% |
| All accounts | 20.94% | 21.19% |
“Accounts assessed interest” means cards that carried a balance. “All accounts” also counts people who pay in full each month and never owe interest, which pulls the average down. If you carry a balance, 22.36% is the better benchmark.
How much does a 22.36% rate cost on a $5,000 balance?
Here is an illustration, not a quote. Say you owe $5,000 at 22.36% APR and make a fixed payment each month with no new purchases. We use a simple monthly calculation. Your card issuer may figure interest daily, so your real numbers will differ a little.
The first month’s interest is $5,000 × 22.36% ÷ 12 = $93.17. A $200 payment covers that and only about $107 of the balance.
| Monthly payment | Months to pay off | Total interest |
|---|---|---|
| $150 | 53 | $2,886 |
| $200 | 34 | $1,793 |
| $300 | 21 | $1,043 |
Going from $200 to $300 a month saves $1,792.96 − $1,043.11 = about $750 in interest and ends the debt 13 months sooner.
Why can my card’s rate change?
Many cards have a variable rate. The Consumer Financial Protection Bureau (CFPB) explains that a variable APR changes with an index, such as the prime rate. Your cardholder agreement says which index yours follows.
The Fed’s daily rate report shows the bank prime loan rate at 7.00% and the effective federal funds rate at 3.88% on October 12, 2026. The prime rate is set by banks, not the Fed, and your issuer adds its own margin on top.
The CFPB also lists when an issuer can raise your rate:
- For new purchases, it generally must give you 45 days’ notice, and generally can’t do it in the first year of the account.
- On an existing balance, a rise is allowed in a few cases, including when a variable rate’s index goes up.
- A promotional rate, such as a low balance-transfer rate, can end after at least six months.
What did the Fed just do?
On September 16, 2026, the Fed voted 12–0 to raise its target range for the federal funds rate by a quarter point, to 3.75%–4.00%. Its calendar shows the next meetings on October 27–28 and December 8–9.
We can’t say what it will decide, and we aren’t claiming the Fed’s moves set your card’s rate. The point is practical: if your rate is variable, it can change without any action from you, so plan for a rate a bit higher than today’s.
What happens to my savings?
Rates on the other side of the ledger are much lower. The FDIC’s national average for savings accounts was 0.37% in its September 21, 2026 posting, which reflects August data.
Compare that with card interest. Illustration: $10,000 earning 0.37% for a year gains $10,000 × 0.0037 = $37. The same $10,000 owed at 22.36% costs about $2,236 in interest over a year if the balance doesn’t shrink. At those rates, paying down the card saves far more than a typical savings account earns, though it still helps to keep a small emergency cushion.
What to do now
- Find your APR. It’s on your statement. Note whether it says “variable.”
- Read your cardholder agreement. Look for the index your rate follows and any promotional rate end date.
- Run your own numbers. Enter your balance, rate and payment in our credit card payoff calculator and check the payoff date.
- Raise your payment if you can. Even $50 more a month shortens the payoff, as the table above shows.
- Check your rate. Use the APR calculator to compare your card with other offers, and ask your issuer whether it will lower your rate.
- Watch for notices. A rate-change notice for new purchases must come at least 45 days ahead, so open mail and emails from your issuer.
- Keep a small cushion. Hold some cash so an emergency doesn’t go back on the card. Our interest calculator shows what savings earn.
This article is general information, not personal financial advice.
Frequently asked questions
What is the average credit card interest rate right now?
The Federal Reserve's G.19 consumer credit report, released October 7, 2026, shows 22.36% (preliminary) for August 2026 on credit card accounts that were assessed interest. Across all accounts, including people who pay in full every month, the average was 21.19%. Your own rate can be higher or lower, depending on your card and credit history.
Why is my credit card APR going up?
APR stands for annual percentage rate, the yearly cost of borrowing. If your card has a variable rate, it follows an index such as the prime rate, and the Consumer Financial Protection Bureau says an issuer can raise the rate on your existing balance when that index goes up. Check your cardholder agreement to see whether your rate is variable and which index it follows.
Can my credit card company raise my rate without telling me?
Generally not. The CFPB says an issuer must give you 45 days' advance notice before raising the rate on new purchases, and it generally can't do that in the first year of the account. A variable rate that rises because its index went up is one of the listed exceptions that can apply to an existing balance.
Does the Fed set my credit card rate?
No. Your card issuer sets your rate. The Fed sets a target for the federal funds rate, which is what banks charge each other for overnight loans, and many cards are tied to the prime rate, which banks set themselves. Check your cardholder agreement to see how your own rate is set and what margin the issuer adds.
What is the fastest way to pay off a credit card?
Pay more than the minimum every month. As the example in this article shows, raising a $5,000 payment from $200 to $300 a month saves about $750 in interest and takes 13 months off the payoff. Also stop adding new purchases to the balance while you pay it down, and try our credit card payoff calculator to test your own numbers.