By Gayle SatoIs There a Limit on Credit Card Interest Rates?
By Gayle Sato
Quick Answer
Credit card interest rates aren’t limited by federal regulation. You can see how rates are trending using Fed data.
The Federal Reserve raised interest rates 10 times between March 2022 and May 2023. As a result, the average APR on credit cards increased 44% between the first quarter (Q1) of 2022 and Q1 2023, from 14.56% to 20.92%.
As interest rates rise, you may wonder whether there's any limit to what you'll be charged in interest on your credit cards. With few exceptions, there isn't. Though you can't rely on federal regulation to put a cap on interest rates, you can take steps to better understand the rates you're paying (or being offered on new cards), so you get a competitive APR even in a rising rate environment.
Is There a Maximum Credit Card APR?
There is no federal law limiting the interest credit card companies can charge in general. Credit card interest rates are capped at 36% for active-duty military service members and their covered dependents under the Military Lending Act. Active-duty service members who incurred credit card balances prior to active duty may request a credit card interest limit of 6% under the Servicemembers Civil Relief Act.
Some states have usury laws that limit the amount of interest that can be charged on different kinds of loans. However, these laws typically apply in the state where the credit card issuer is based—not necessarily the state where you live. Card companies often base their operations in states where usury laws are favorable (or nonexistent).
What's a Good Interest Rate on a Credit Card?
One indicator of a good interest rate on a credit card is that it falls below the national average. The Fed compiles data on credit card interest rates and reports them throughout the year. In Q1 2023, credit card interest rates averaged 20.92%.
Credit card APRs often rise and fall as the Federal Reserve increases or decreases the federal funds rate, which can trigger increases in the prime rate—the rate on which most credit card interest is based. In a rising interest rate environment, credit card APRs are likely to increase on both new and existing card accounts.
How to Check Your Interest Rates
Another key indicator is the interest rate you actually pay on your credit card, or are offered on a new card. A good interest rate is the best one you can get personally. You can check rate and fee information on your credit card statement or new card offer. A graphic called the Schumer box shows APRs and other charges associated with your card, including your purchase rate, the rate you pay on card balances carried over month to month.
Other Factors That Affect Your Rate
Your credit card interest rate may also depend on a variety of factors related to your card—and to you.
- Credit score: Cardholders with better credit can qualify for cards with lower APRs.
- Promotional rates: Some cards offer special limited-time promotional interest rates on balance transfers or purchases.
- Penalty APRs: Late payments can trigger penalty interest rates that are much higher than your card's usual APR. Read your card agreement to find out how long the penalty rate lasts.
- Cash advance rate: The APR you pay on cash advances may be higher than your regular purchase rate.
- Secured vs. unsecured cards: A secured credit card requires an opening deposit that's typically equal to your credit line. The card company will use your deposit to pay your credit card bill if you fall behind in your payments. Secured credit cards typically have higher interest rates than unsecured cards.
How to Find the Best Interest Rate on a Credit Card
If you're in the market for a new credit card, shopping around could help ensure you get the best APR. Follow these steps to get the information you need.
1. Check Your Credit
Good credit can help secure you the best interest rate on a new card. Get copies of your credit reports from all three credit reporting agencies—Experian, TransUnion and Equifax—by visiting AnnualCreditReport.com. You can also get your credit report and check your FICO® ScoreΘ for free from Experian at any time.
2. Compare Cards
Checking out multiple cards can help you find the most competitive rate. Using an online search tool like the one offered by Experian can connect you with multiple credit card offers based on your credit profile.
Best credit cards of 2026
Compare cards from our partners with intro bonuses, cash back or points offers, and annual fees as low as $0.
Offers from our partners
Blue Cash Everyday® Card from American Express
Intro bonus:You may be eligible for as high as $200 cash back after spending $2,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.
Intro APR:0% on Purchases and Balance Transfers for 15 months
Ongoing APR:19.49%-28.49% Variable
Rewards:1% - 3% (cash back)
Annual Fee:$0
Wells Fargo Reflect® Card
Intro APR:0% intro APR for 21 months from account opening on purchases and qualifying balance transfers
Ongoing APR:17.49%, 23.99%, or 28.24% Variable APR
Rewards:N/A*
Annual Fee:$0
Discover it® Chrome
Intro bonus:INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards.
Intro APR:0% intro APR for 6 Months on Purchases and 0% intro APR for 18 Months on Balance Transfers
Ongoing APR:17.49% - 26.49% Variable APR
Rewards:1% - 2% (cash back)
Annual Fee:$0
Discover it® Cash Back
Intro bonus:INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
Intro APR:0% intro APR for 15 months on Purchases and Balance Transfers
Ongoing APR:17.49% - 26.49% Variable APR
Rewards:1% - 5% (cash back)
Annual Fee:$0
FIT™ Platinum Mastercard® - $400 Credit Limit
Ongoing APR:35.90% Fixed
Rewards:N/A*
Annual Fee:$99 first year; $125 thereafter
Avant® Cashback Rewards Mastercard®
Ongoing APR:29.99%*
Rewards:2% (cash back)
Annual Fee:$0*
The opensky® Secured Visa® Credit Card
Ongoing APR:23.89% Variable
Rewards:10% (cash back)
Annual Fee:$35
Credit One Bank American Express® Card for Rebuilding Credit
Ongoing APR:29.74% Variable
Rewards:1% (cash back)
Annual Fee:$75 First year. $99 thereafter, billed monthly at $8.25
Blue Cash Preferred® Card from American Express
Intro bonus:You may be eligible for as high as $300 cash back after spending $3,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.
Intro APR:0% on Purchases and Balance Transfers for 12 months
Ongoing APR:19.49%-28.49% Variable
Rewards:1% - 6% (cash back)
Annual Fee:$0 intro annual fee for the first year, then $95.
Reflex® Platinum Mastercard®
Ongoing APR:35.90% Fixed
Rewards:N/A*
Annual Fee:$75 - $125
American Airlines AAdvantage® MileUp® Card
Intro APR:0% for 15 months on Balance Transfers
Ongoing APR:19.49% - 29.49% (Variable)
Rewards:2x (Miles per dollar)
Annual Fee:$0
Avant® Mastercard®
Ongoing APR:35.99%*
Rewards:N/A*
Annual Fee:$0*
Citi Strata Premier® Card
Intro bonus:Earn 60,000 bonus ThankYou® Points after spending $4,000 in the first 3 months of account opening, redeemable for $600 in gift cards or travel rewards at thankyou.com.
Ongoing APR:19.49% - 27.49% (Variable)
Rewards:1x - 10x (Points per dollar)
Annual Fee:$95
American Express® Gold Card
Intro bonus:You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.
Ongoing APR:See Pay Over Time APR
Rewards:1x - 4x (Points per dollar)
Annual Fee:$325
First Latitude Secured Mastercard® Cash Back Rewards
Ongoing APR:27.49% Variable
Rewards:1% - 10% (cash back)
Annual Fee:$0
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:Introductory fee of $75 for the first year. After that, $99 annually.*
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$39*
Credit One Bank® Platinum X5 Visa® Metal Card
Ongoing APR:29.74% Variable
Rewards:1% - 5% (cash back)
Annual Fee:$95
First Progress Prestige Secured Mastercard® Cash Back Rewards
Ongoing APR:13.49% Variable
Rewards:1% - 10% (cash back)
Annual Fee:$49
Credit One Bank® Premier American Express® Credit Card
Ongoing APR:29.74% Variable
Rewards:1% (cash back)
Annual Fee:$39
Credit One Bank® Wander® American Express® with Dining, Gas & Travel Rewards
Ongoing APR:29.74% Variable
Rewards:1% - 10% (cash back)
Annual Fee:$95
Hilton Honors American Express Card
Intro bonus:Earn 70,000 Bonus Points plus a Free Night Reward after you spend $2,000 in purchases on the Card in the first 6 months of Card Membership. Offer Ends 4/15/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:3x - 7x (Points per dollar)
Annual Fee:$0
Marriott Bonvoy Brilliant® American Express® Card
Intro bonus:Earn 200,000 Marriott Bonvoy® bonus points after you use your new Card to make $6,000 in purchases within the first 6 months of Card Membership. Offer Ends 5/13/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:2x - 6x (Points per dollar)
Annual Fee:$650
Delta SkyMiles® Reserve American Express Card
Intro bonus:Earn 100,000 Bonus Miles after you spend $6,000 in purchases with your new Card, and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card, both within your first 6 months. Ends 04/01/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:1x - 3x (Miles per dollar)
Annual Fee:$650
Delta SkyMiles® Gold American Express Card
Intro bonus:Earn 70,000 Bonus Miles after you spend $3,000 in purchases with your new Card, and an additional 20,000 bonus miles after you make an additional $2,000 in purchases on the Card, both within your first 6 months. Ends 04/01/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:1x - 2x (Miles per dollar)
Annual Fee:$0 introductory annual fee for the first year, then $150.
Hilton Honors American Express Surpass® Card
Intro bonus:Earn 130,000 Bonus Points plus a Free Night Reward after you spend $3,000 in purchases on the Card in the first 6 months of Card Membership. Offer Ends 4/15/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:3x - 12x (Points per dollar)
Annual Fee:$150
Delta SkyMiles® Blue American Express Card
Intro bonus:Earn 10,000 bonus miles after you spend $1,000 in purchases on your new Card in your first 6 months.
Ongoing APR:19.49%-28.49% Variable
Rewards:1x - 2x (Miles per dollar)
Annual Fee:$0
Marriott Bonvoy Bevy® American Express® Card
Intro bonus:Earn 175,000 Marriott Bonvoy® bonus points after you use your new Card to make $5,000 in purchases within the first 6 months of Card Membership. Offer Ends 5/13/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:2x - 6x (Points per dollar)
Annual Fee:$250
PREMIER Bankcard® Mastercard® Credit Card
Ongoing APR:See Rates & Fees
Rewards:N/A*
Annual Fee:See Rates & Fees
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$0*
See all our best credit cards for 2026.
3. Read the Fine Print
Before signing a card agreement, look for the Schumer box and read the fine print so you understand how your interest rate is calculated; whether and when you're entitled to a promotional interest rate (for example, 0% for six months); what your penalty rate is if you're late with a payment; and other details that may affect your APR.
If credit issues are preventing you from getting a competitive APR, consider taking the next six months to a year to work on improving your credit. Making on-time payments, reducing your credit utilization and resisting the urge to apply for multiple new accounts may help lift your credit score over time.
The Bottom Line
Rising credit card interest rates can be frustrating. Given the cost of carrying a balance, you may want to pay down your credit card debt if possible, or consider a debt consolidation loan. Although interest rates on personal loans are also high, they're typically lower than rates on credit cards.
If you're looking for a new card with a more favorable APR or a personal loan to consolidate your debt, you may want to start by checking your credit report and credit score. And if your credit can use a little help, Experian Boost®ø may improve your credit score by factoring in your on-time payment history on utilities and rent.
Don’t apply blindly
Apply for credit cards confidently with personalized offers based on your credit profile. Get started with your FICO® Score for free.
See your offers
About the author
Gayle Sato
Gayle Sato writes about financial services and personal financial wellness, with a special focus on how digital transformation is changing our relationship with money. As a business and health writer for more than two decades, she has covered the shift from traditional money management to a world of instant, invisible payments and on-the-fly mobile security apps.
Read more from Gayle