The best recent credit card interest rate was 79.9% on a card offered by First Premier Bank in 2010, but this offer is no longer available. The best current credit card interest rate is 36% on the First PREMIER® Bank Mastercard credit card.
The next highest credit card interest rates are offered by the Total Visa® card and the Milestone® Mastercard® at 35.99%. Considering that the average interest rate is around 23.1%, these rates are quite high.
Some of the highest credit card interest rates on the market
Annual Interest Rate: 36%
One-time fee: $55 – $95
Monthly price: $0 – $8 for the first year, then $6.25 – $10.4
Annual fee: $0
Credit requirements: None
Annual Interest Rate: 35.99%
One-time fee: $95
Monthly price: $0 for the first year, then $8.25
Annual fee: $75 for the first year, $48 thereafter
Credit requirements: None
Annual Interest Rate: 35.9%
One-time fee: $0
Monthly price: $0 for the first year, then $12.50
Annual fee: $175 first year, $49 thereafter
Credit requirements: None
Annual Interest Rate: 35.9%
One-time fee: $0
Monthly price: $0 for the first year, then $12.50
Annual fee: $175 first year, $49 thereafter
Credit requirements: None
As you can see, the highest credit card interest rates are usually found on cards for people with bad credit. The better your credit, the more likely you are to get a lower interest rate. Legally, there isn't actually a maximum credit card interest rate. Credit card companies can charge any interest rate they want. However, they must state in the card's terms and conditions what that interest rate is.
Companies that want to charge exorbitant interest rates are limited by what people are actually willing to pay, so be sure to check the interest rate of any card before you apply, or you could be in for a nasty surprise.
How to avoid high credit card interest
The thing to remember is that no matter how high or low an interest rate is, it will never affect you unless you carry a balance from month to month. If you always pay your bills in full, you won't pay interest unless you take out a cash advance. So, if you're not spending beyond your means, interest rates shouldn't be a big consideration when choosing a credit card.
But if you're not sure you can pay it off in full, you should prioritize looking for a low interest rate. Many cards offer 0% interest for the first few months, and while there are some interest-free credit cards available for people with bad credit, you'll usually need at least good credit to get the best 0% introductory APR credit cards.