January 27, 2023

What Is the Average Interest Rate on Popular Cards?

Credit cards are great! You can rack up rewards points, sign up for special offers and earn cash back. But sometimes, the best credit cards don’t always offer you the most rewards or the lowest interest rates. Instead, you must consider what types of purchases you’ll make with your card. And how much money those purchases might cost in interest if you don’t pay off your balance every month.

Credit cards for average credit

You’re still considered average if your credit score is between 580 and 639. But if that number needs to improve, it might be time to take a closer look at the cards in your wallet. According to SoFi experts, “The average interest rate on credit cards is 16.44%, according to the most recently available Federal Reserve data. 

It can be difficult to find a good deal on a card if you have an average credit score. Many lenders are hesitant to offer low-interest rates or rewards programs for those with below-average scores because they want to avoid lending money to someone who won’t pay back on time or at all. In some cases, even if you have excellent payment history or other positive qualities like a down payment for property ownership, not having any high-value debt can make it harder for lenders to see how responsible a borrower is.

That said, some options out there could help give your finances some breathing room—and they don’t necessarily involve going into massive debt either! One way is by looking into secured credit cards; another way is by shopping around until finding an unsecured card that works best for both parties (i.e., low APR rate + low annual fee).

Small business credit cards

You might be wondering what the average interest rate is for a small business credit card. After all, this is an important factor when choosing a card, especially if you are looking for one with rewards.

The good news is that there isn’t much difference between the rates on small business credit cards and those offered to consumers in general. The average small business interest rate was 13% in 2018 and remains at that level today. In fact, most of these cards have an APR range between 11% and 18%, making them quite competitive compared to other options.

Balance transfer credit cards

If you want to take advantage of a balance transfer, the first step is finding a card that suits your needs. You’ll find that many credit cards offer low introductory rates on balance transfers and cash advances. This can save you hundreds or thousands in interest charges if you have high-interest debt.

To find the best balance transfer card for your needs, be sure to look at the following:

  • The introductory APR period (how long it’s good for). If it’s only six months and doesn’t include any teaser rate afterward, then this might not be as good of an option as one with longer terms and higher APRs that may decrease after that initial period has expired.
  • The fees associated with opening and closing accounts. Check on these before signing up, so you don’t get scammed into paying more than necessary just because someone wants some extra cash from their customers!

Hopefully, you have learned something valuable today after reading this article. Share it with those who might be confused, like you, regarding credit cards and it’s interest rates. 

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