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 35.49%.
  • The average credit card APR is 3.25% higher in July 2024 compared to July 2023.
  • The biggest monthly increase in the average APR was in October 2023, when it rose from 32.26% to 34.58%.
  • The average credit card interest rate in the UK (minus fees) is 26.20%.

What is the average credit card APR in the UK?

The UK average credit card APR in July 2024 is 35.49%, an increase of over 3 percentage points from the average rate of 32.35% this time last year. This is up slightly from the average credit card APR in June 2024, which was 35.41%.

The average interest rate on credit cards had risen almost every month over the past year, with a 5% increase between January 2023 and July 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
Jul 24 35.49%
Jun 24 35.41%
May 24 35.23%
Apr 24 35.41%
Mar 24 35.23%
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%

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 28.00%
Balance transfer 25.28%
Frequent flyer 59.70%
Overseas 32.42%
Credit builder 36.17%
Rewards 42.25%
Purchase 29.97%
Student 21.90%
Supermarket 36.57%
Cashback 28.20%

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) advertised. 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.

APR vs interest rate: What’s the difference?

The main difference between a credit card APR an interest rate, is that the interest rate is the cost of borrowing the principal amount, while the APR also includes an additional fees and charges so it almost always higher than the interest rate.

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

The average credit card interest rate was 26.20% in July 2024. This has increased from 25.26% in June 2023 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
Jul 2024 26.20%
Jun 2024 26.12%
May 2024 26.11%
Apr 2024 26.29%
Mar 2024 26.31%
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%

Why have credit card interest rates been rising?

The Bank of England raised the rate of the central bank, also known as the base rate, throughout 2022 and 2023 until it hit 5.25% in August 2023. It has since held the rate at this high point and it is currently still at 5.25% as of 20 June 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.

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

Matt Mckenna
UK Head of Communications
T: +44 20 8191 8806

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To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.
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Emily Herring is a Publisher at Finder specialising in credit-based products including credit cards and business and personal loans. Emily has recently joined the Investments team. She has a Masters in Creative Writing & Publishing and a Bachelor of Arts in Communication & Media. See full bio

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Emily has written 133 Finder guides across topics including:
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  • Building credit
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Sophie Barber is a content marketing manager for Finder in the UK after previously working as a content manager at a digital marketing agency. She has over 5 years experience in writing and publishing clear, concise and informative online articles for a variety of websites. See full bio

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Sophie has written 68 Finder guides across topics including:
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