The national average interest rate for credit cards was 19.70% on Oct. 21, 2026, Bankrate reported, marking a steady climb since about May and adding pressure to households that carry balances.
Why the rate is rising
Bankrate and the Consumer Financial Protection Bureau say two factors determine card rates: the Prime Rate, which moves with Federal Reserve policy, and an issuer's markup. When the Fed raised its benchmark by 25 basis points on Sept. 16, pushing the target federal funds range to 3.75% to 4.00%, Bankrate found an average credit-card rate uptick of 0.12 percentage points.
- National average credit card APR: 19.70% (Oct. 21, 2026)
- Federal funds target range: 3.75%–4.00% (after Sept. 16 increase)
- Average change tied to Sept. 16 Fed move: +0.12 percentage point
What this means for consumers
Higher card APRs raise the cost of carrying revolving balances. The CFPB notes consumers avoid interest charges by paying balances in full each month; issuers charge higher rates on credit cards than on many secured loans because credit-card debt is unsecured.
At the same time, household borrowing and missed payments have grown. Data reported by Payments Dive from the Federal Reserve Board’s triennial Survey of Consumer Finances show a large increase in median credit-card balances between 2022 and 2025: from $150 to $3,100. In 2025, about 44.7% of families reported having a credit-card balance after their last payment.
“Families were more likely to be behind on their financial obligations than at any point since the 2010 survey,” the report reads.
The share of families reporting they were behind on loan payments rose sharply between the 2022 and 2025 surveys, climbing from about 12% to almost 20%. That rise in delinquencies and the larger balances amplify the impact of rising APRs for many households.
Context and limits
Bankrate’s national average is a market snapshot; individual cardholders’ APRs vary widely based on credit histories and issuer pricing. The CFPB’s guidance remains unchanged: paying the statement balance in full avoids finance charges. For consumers carrying balances, the combination of higher rates and larger typical balances means monthly interest costs will likely rise.
The figures reported here come from Bankrate, the Consumer Financial Protection Bureau and the Federal Reserve Board’s Survey of Consumer Finances as cited by Payments Dive and related coverage.
