Since one of the main features that attract us to credit cards is the Annual Percentage Rate (APR), I have decided to publish the first Monthly Credit Card Interest Rate Report.  The goal of this report if to summarize the average, minimum, and maximum APR for each card category thus being able to identify trends in credit card finance charges as well as visually compare the extra charges you give up in return for benefits such as Airline Miles and Cash Rewards. 

I used over a hundred credit cards from various issuers such as Citibank, Chase, Bank of America, Capital One, HSBC, American Express, Discover Card, and more in order to get to the average APR for each category.

Category Avg APR Min APR Max APR # Cards
Reward Cards 15.90% 13.24% 19.80% 52
Low Rate 10.90% 7.90% 12.90% 30
Balance Transfer 14.10% 13.00% 14.25% 14
Business Cards 14.00% 7.99% 18.25% 28
Student Cards 16.90% 14.24% 18.24% 12

As you can see, if you are classified as “high risk” such as being a student, you will undoubtedly have a higher interest rate on your credit card.  However, if you have good-excellent credit ratings, then you have an options of picking your rate through choosing what kind of benefits you want.

As I have previously pointed out, do not get a credit card with rewards (cashback, airline, hotel, etc) in exchange for a higher APR if you carry a balance (aka revolve) simply since the financial benefit of the rewards are quickly offset by the higher finance charges that you will be pating on revolving balances.

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