What is Your Current Credit Card Interest Rate? It Might Surprise You

Finding Your Current Credit Card Interest Rate

Finding your rate is as easy as checking your monthly credit card statement. Look for the section that includes interest charges, and you should see your current credit card interest rate as well as all the other APRs associated with your account.

If you don't see it, call or email your issuer’s support team and have a representative look it up for you.

Also, it’s crucial to keep in mind that just because your rate is “fixed” doesn’t mean it can’t change. Issuers can raise your rate if you make late payments, miss payments, or take a hit to your credit score.

Fortunately, they’re required to give you plenty of notice if they plan to do so, but that doesn’t mean you shouldn’t check your rate regularly—especially if your credit score has gone down or you haven’t been able to keep up with payments.

If You Have a Variable Rate

If your credit card has a variable APR, it's even more important to keep a close eye on it. Variable rates are often linked to the Federal prime rate, which can change as often as every six weeks. Whether they change is based on a number of economic factors, like inflation, loan demand, the federal funds rate, and others.

Luckily, it’s just as easy to find your variable interest rate. Simply check your statement or get in touch with customer service.

How to Calculate Your Monthly Rate

Knowing your interest rate is key if you want to use your credit card to your advantage. But if you want to get a little more granular with it, you can calculate your monthly interest rate using your APR.

You’ll have to do a bit of math, but nothing too crazy, and the instructions below will walk you through it:

1. First, divide your current credit card interest rate by 12 to get your approximate monthly rate. So, if your APR is 20%, 20 divided by 12 gives you a monthly rate of 1.67%.
   
   
2. Next, calculate the dollar amount of interest you’ll be paying each month by multiplying your monthly rate by your average daily balance (ADB). If you have an ADB of $1,000, it would be $1,000 x 0.0167, which gives you a monthly interest charge of $16.70.
   
   

What is a Good Interest Rate on a Credit Card?

If you’re on the hunt for a new credit card, use the national average credit card APR as a benchmark. According to LendingTree, the average is currently sitting just below 25%. So, ideally, you’ll want a rate that falls below or as close to 25% as possible.

But unfortunately, you don’t have your pick of the litter when it comes to APRs. How high or low your APR will be depends on your credit. If you have good credit, banks and issuers will offer you a lower rate. If your credit’s not so good, you’ll likely be stuck with a higher rate.

To give you a general idea of what qualifies as a “good” interest rate relative to your credit score, we built this quick list for you. Just keep in mind these are estimates, so you may see slightly different numbers when you go shopping for rates.

• Great Credit (740 and above): 10-15% APR
• Good Credit (670-739): 15-20% APR
• Fair Credit (580-669): 20-25% APR
• Poor Credit (300-579): 25% and above

Also, don't feel like you have to go with a big bank or credit card issuer. During your search, be sure to research credit unions and smaller banks in your area, as they usually offer much lower rates.

These features will give you plenty of cushion from frequent rate changes and help you minimize the amount you pay in interest. Again, to maximize your savings and avoid any interest charges, always aim to pay off your full balance each month. For more guidance, see our article on responsible credit card use.

Know Your Numbers, Keep Your Cash

Unless it's winning the lottery or finding $20 in a pair of jeans, no one likes unexpected financial surprises. When you know your current credit card interest rate, they're far less likely.

With your finger on the pulse, it's much easier to keep your debt in check, be diligent about settling your balance, and save money on interest.

The thing is, it’s not uncommon to have multiple credit cards, all with different interest rates. Some variable, some not. And when you’re trying to pay off your debts, it can be a headache trying to make sense of which account to focus on.

That’s where a program like the Money Max Account can make all the difference.

The Money Max Account is a debt elimination software designed specifically to do all that tedious mathematical analysis for you.

Powered by sophisticated financial algorithms and banking strategies, this system gives you tailored instructions based on your financial situation (income, expenses, debts, interest rates, goals, etc.), telling you exactly which credit card to pay off and when.

No endless hours of budgeting, no confusion. Just a roadmap from where you are now to being fully paid off, and saving thousands in interest payments along the way, as so many of our clients have before.

If you’d like to learn more about the Money Max Account, fill out the form below. One of our debt elimination experts will reach out to you to set up a free consultation, where you’ll find out all about how the program works and how much time and money it can save you.