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Current credit card interest rates

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  Published in Media and Entertainment on Tuesday, October 7th 2025 at 17:24 GMT by Fox 11 News
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The State of Credit‑Card Rates in 2025: What You Need to Know

If you’ve been watching the financial news or scrolling through the “Money” section of Fox 11’s website, you’ll have seen the headline that is all anyone can talk about these days: Current Interest Rates on Credit Cards. The Fox 11 article (accessible at [ https://fox11online.com/money/credit-cards/current-interest-rates ]) dives into the latest figures for unsecured credit‑card APRs, explains how those numbers are set, and offers practical advice for consumers looking to keep their costs low.

Below is a concise, data‑driven recap of what the article covers, broken down into the key themes the writer highlighted. It is written for the average reader who may not be familiar with the jargon of finance but wants to understand how much they could end up paying for borrowing money on a credit card.

1. The Current Landscape of Credit‑Card APRs

The article opens with the most obvious answer: the average APR for unsecured credit cards in the United States is now around 24.5 %. That is up from roughly 22.8 % a year ago, reflecting a 1.7‑percentage‑point jump that mirrors the overall rise in short‑term borrowing costs. The writer points out that the increase is not just a headline number; it translates into real‑world consequences for consumers who carry balances month‑to‑month.

The piece references a chart that tracks the monthly average APR over the past three years. The trend line has been steadily upward since early 2023, with a brief dip in late 2023 when a handful of banks temporarily lowered rates to gain new customers.

2. Who’s Offering the Lowest and Highest Rates?

A key feature of the article is the side‑by‑side table that lists major issuers and their published APR ranges. Here’s a snapshot of what the table reports (figures are approximated from the article and may have been rounded):

The article makes a clear point that while some issuers advertise “low‑APR” products, the ranges are often skewed by a handful of premium‑credit‑score cards. The “average APR” column is the most relevant for the average consumer, because it represents the weighted cost across all cards issued by a bank.

The writer also includes a link to a separate Fox 11 piece that explores how banks determine the starting APR for a new cardholder. That article explains that issuers look at a combination of credit‑score tiers, existing balances, payment history, and market conditions.

3. What Drives These Numbers?

The article goes on to explain the mechanics of interest‑rate setting, citing an interview with a banking analyst (link provided in the text). The key takeaways:

1. Federal Reserve policy – When the Fed raises the federal funds rate, banks typically follow with higher consumer‑loan rates, including credit‑card APRs.
2. Risk‑based pricing – Banks charge higher rates to consumers with lower credit scores to compensate for the higher likelihood of default.
3. Competitive dynamics – If a rival issuer drops its rates, other banks may feel pressure to do the same to attract or retain customers.

The linked analyst’s commentary also includes a graph that shows how the average unsecured‑credit‑card APR has moved in tandem with the Fed’s target rate over the last decade.

4. Recent Rate Hikes and Strategic Moves

A notable portion of the article focuses on the latest rate changes announced in 2025. Several banks have announced incremental hikes of 0.25 % to 0.5 % for the next year. The writer notes that these increases are often justified by banks as necessary to keep pace with “inflationary pressure” and “higher operating costs.”

Conversely, the article points out that Discover and American Express have recently lowered their minimum APRs by 0.5 % each, citing a “new strategy to attract customers in a highly competitive market.” For these two issuers, the change translates into roughly a $200–$300 saving per year for a cardholder who carries an average balance of $5,000.

5. Tips for Managing or Reducing Your APR

The article wraps up with actionable advice, many of which are linked to deeper guides on the Fox 11 website:

• Check your credit score – Even a modest bump (e.g., from 720 to 740) can move you into a lower APR tier.
• Ask for a rate reduction – Contact your issuer and cite your timely payment history and improved score; many banks will lower your rate if you ask.
• Consider balance‑transfer offers – If you’re looking for a temporary respite, 0 % APR balance‑transfer cards can give you months to pay down debt without accruing interest.
• Avoid cash advances – Those often carry APRs that are 20 % higher than the card’s standard rate.
• Automate payments – Setting up autopay can prevent late‑fee penalties that sometimes trigger a rate hike.

For each tip, the article links to a dedicated page that explains the steps in detail, including sample phone scripts for negotiating a lower rate and screenshots of the settings on mobile apps for autopay.

6. Additional Resources

Fox 11’s article offers several embedded links that direct readers to:

• A state‑by‑state breakdown of the average APR (useful for regional banks).
• A federal regulator page that explains how the Consumer Financial Protection Bureau monitors credit‑card interest rates.
• A comparative analysis of credit‑card debt versus other types of consumer debt.

These resources give the reader a broader context and the tools to make an informed decision about their own credit‑card use.

Bottom Line

The Fox 11 article serves as a quick‑look snapshot of the credit‑card market in 2025, providing clear numbers, an explanation of the forces at play, and practical strategies for consumers. With the average unsecured‑credit‑card APR hovering at 24.5 %, the cost of borrowing is higher than it was just a year ago. Yet, as the article shows, there are still avenues for savings—especially for those who maintain good payment habits and who are willing to explore new issuers or negotiate their current rates.

Whether you’re a seasoned cardholder or just starting out, the information presented in this article and its linked resources should help you keep your borrowing costs in check—and perhaps even find a card that offers a lower APR in the next financial cycle.