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 35.57%.
  • The average credit card APR is 4.64% higher in February 2025 compared to February 2023.
  • The biggest monthly increase in the average APR was between September and October 2023, when it rose from 32.26% to 34.58%.
  • The average credit card interest rate in the UK (minus fees) is 26.38%.

What is the average credit card APR in the UK?

The UK average credit card APR in February 2025 is 35.57%, an increase of 4.64 percentage points from the average rate of 30.93% in February 2023. It is also up slightly from the average credit card APR last month, which was 35.55%.

Month
Average APR
Feb 25
35.57%
Jan 25
35.55%
Dec 24
35.55%
Nov 24
35.95%
Oct 24
35.78%
Sep 24
35.61%
Aug 24
35.61%
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%
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
36.31%
Balance transfer
25.89%
Frequent flyer
59.48%
Overseas
32.15%
Credit builder
36.41%
Rewards
43.37%
Purchase
29.97%
Student
29.40%
Supermarket
34.90%
Cashback
27.63%

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 26.38% in February 2025. 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
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%

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 held the rate at this high point for a while before it was lowered to 5% in August 2024. It is currently at 4.5% as of 6 February 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.

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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Publisher

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 144 Finder guides across topics including:
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Sophie Barber is a content marketing manager for Finder in the UK. She has over 5 years experience in writing and publishing clear, concise and informative articles that help consumers make informed decisions. See full bio

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