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.
The UK average credit card APR in January 2026 is 36.32%, an increase of 5.86 percentage points from the average rate of 30.46% in January 2023.
| Month | Average APR |
|---|---|
| Jan 2026 | 36.32% |
| Dec 2025 | 35.99% |
| Nov 2025 | 35.89% |
| Oct 2025 | 36.34% |
| Sep 2025 | 36.32% |
| Aug 2025 | 36.32% |
| Jul 2025 | 36.03% |
| Jun 2025 | 35.61% |
| May 2025 | 35.61% |
| Apr 2025 | 35.62% |
| Mar 2025 | 35.83% |
| Feb 2025 | 35.57% |
| Jan 2025 | 35.55% |
| Dec 2025 | 35.55% |
| Nov 2024 | 35.95% |
| Oct 2024 | 35.78% |
| Sep 2024 | 35.61% |
| Aug 2024 | 35.61% |
| Jul 2024 | 35.49% |
| Jun 2024 | 35.41% |
| May 2024 | 35.23% |
| Apr 2024 | 35.41% |
| Mar 2024 | 35.23% |
| Feb 2024 | 35.02% |
| Jan 2024 | 34.85% |
| Dec 2024 | 34.78% |
| Nov 2024 | 34.74% |
| Oct 2024 | 34.58% |
| Sep 2024 | 32.26% |
| Aug 2024 | 32.22% |
| Jul 2024 | 32.35% |
| Jun 2024 | 32.24% |
| May 2024 | 31.86% |
| Apr 2024 | 31.24% |
| Mar 2024 | 31.45% |
| Feb 2024 | 30.93% |
| Jan 2024 | 30.46% |
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 | 36.20% |
| Balance transfer | 25.81% |
| Frequent flyer | 59.13% |
| Overseas | 32.78% |
| Credit builder | 36.09% |
| Rewards | 43.29% |
| Purchase | 27.52% |
| Student | 23.50% |
| Supermarket | 34.90% |
| Cashback | 27.90% |
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.
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.
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.
The average credit card interest rate was 26.77% in January 2026. This has increased from 24.67% in January 2023 and is up significantly from 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 |
|---|---|
| Jan 2026 | 26.77% |
| Dec 2025 | 26.62% |
| Nov 2025 | 26.55% |
| Oct 2025 | 26.66% |
| Sep 2025 | 27.09% |
| Aug 2025 | 27.09% |
| Jul 2025 | 26.96% |
| Jun 2025 | 26.75% |
| May 2025 | 26.63% |
| Apr 2025 | 26.65% |
| Mar 2025 | 26.72% |
| Feb 2025 | 26.38% |
| Jan 2025 | 26.30% |
| Dec 2024 | 26.34% |
| Nov 2024 | 26.28% |
| Oct 2024 | 26.32% |
| Sep 2024 | 26.17% |
| Aug 2024 | 26.05% |
| 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% |
| Jan 2023 | 24.67% |
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 held the rate at this high point for a while before it was lowered to 5% in August 2024. It is currently at 3.75% as of 18 December 2025.
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 saw a period of increasing.
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.
Matt Mckenna
UK Head of Communications
T: +44 20 8191 8806
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