What is the average credit card APR in the UK?

We look at the average APR and interest rates on credit cards in the UK and how they've changed over time.

When comparing credit cards, one factor to consider is the annual percentage rate (APR), which shows the total cost of borrowing over a year. We look at the average credit card APR in the UK.

Quick overview

  • The average credit card APR in the UK is 35%.
  • The average credit card APR is over 4 percentage points higher in February 2024 than February 2023.
  • February 2024 is the only month in the past year when the average credit card APR has reached 35%.

What is the average credit card APR in the UK?

The UK average credit card APR in February 2024 is 35.02%, an increase of just over 4 percentage points from the average rate of 30.46% this time last year.

The average interest rate on credit cards has risen almost every month over the past year, with a 15% increase (5.34 percentage points) between January 2023 and February 2024. The steepest increase in the average APR was registered in October 2023, when the average APR rose from 32.26% to 34.58%.

Month Average APR
Feb 24 35.02%
Jan 24 34.85%
Dec 23 34.78%
Nov 23 34.74%
Oct 23 34.58%
Sep 23 32.26%
Aug 23 32.22%
Jul 23 32.35%
Jun 23 32.24%
May 23 31.86%
Apr 23 31.24%
Mar 23 31.45%
Feb 23 30.93%
Jan 23 30.46%

What is the average APR for different types of credit cards?

The average APR (annual percentage rate) varies significantly based on the type of credit or charge card. We outline the average rates based on the type of card below.

Card type Average APR
Business credit 33.50%
Balance transfer 25.08%
Frequent flyer 56.72%
Overseas 31.35%
Credit builder 35.32%
Rewards 43.27%
Purchase 29.97%
Student 24.50%
Supermarket 36.57%

For example, frequent flyer cards tend to come with high interest rates, although they allow you to earn bonus points for flights and travel upgrades, as well as other lifestyle benefits. This is similar to rewards credit cards, which typically offer a higher annual fee, because you are offered additional benefits such as cashback, gift cards and vouchers.

Credit builder cards also tend to have slightly higher interest rates than average because the companies will consider applications with a limited or poor credit history, so they charge a higher rate because of the additional risk involved. Meanwhile, student credit cards and balance transfer credit cards tend to have lower rates as they appeal to a different audience.

However, it’s worth noting there are exceptions, which can vary depending on the products currently available in the market.

What is the representative APR?

It’s important to keep in mind that not everyone who applies for a credit card will receive the representative annual percentage rate (APR). Instead, this is the advertised rate that applies to at least 51% of those who apply, but you might be offered a different rate depending on your individual application.

What is the average credit card interest rate in the UK?

The average credit card interest rate was 26.25% in February 2024. This has increased from 24.67% in January 2024 and 21.9% in January 2019. The interest rate is also referred to as the purchase rate and is lower than the average APR because it does not include fees and other charges, which can be high for certain credit cards.

Month Average interest rate
Feb 2024 26.25%
Jan 2024 26.21%
Dec 2023 26.20%
Nov 2023 26.18%
Oct 2023 26.13%
Sep 2023 25.93%
Aug 2023 25.72%
Jul 2023 25.40%
Jun 2023 25.26%
May 2023 25.40%
Apr 2023 25.18%
Mar 2023 24.99%
Feb 2023 24.92%
Jan 2023 24.67%

Why have credit card interest rates been rising?

The Bank of England has been raising the rate of the central bank, also known as the base rate, throughout 2023, and it is currently set at 5.25% as of February 2024.

Interest rates on financial products tend to go up in response to action taken by the Bank of England, and this includes credit cards, which is why the average APR has been increasing more quickly in recent months.

This is because banks often pass on the increased cost of borrowing to consumers in the form of higher interest rates to maintain overall economic stability.

Methodology and sources

    The average APR and interest rates/purchase rates for UK credit cards were taken from Finder’s market database of over 180 cards in 10 categories. The overall average APR excludes business credit cards and charge cards.

Click here for more research. For all media enquiries, please contact

Matt Mckenna

UK Head of Communications

T: +44 20 8191 8806

matt.mckenna@finder.com@MichHutchison/in/matthewmckenna2

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