Average Credit Card Interest Rate: 21.19% in Q3 2026
The average credit card interest rate was 21.19% in the third quarter of 2026. The 30-year mortgage rate was 7.24% on Oct 29, 2026. The fed funds target range was 3.75% to 4.00% on Nov 4, 2026.
What Are Current Interest Rates for Credit Cards, Mortgages and the Fed?
The average interest rate on bank credit card accounts was 21.19% in the third quarter of 2026, according to the Board of Governors of the Federal Reserve System's quarterly survey of card-issuing banks. That is little changed from a year earlier, when it was 21.39%. It is the highest rate since Q3 2025. In 2019 the rate averaged 15.05%.
The 30-year mortgage rate is Freddie Mac's weekly average for a 30-year fixed loan, a national benchmark rather than any one lender's quote. The federal funds rate is what banks charge each other for overnight loans. The Federal Reserve sets a target range for it, and the current range has been in effect since Sep 17, 2026. Neither figure is the rate on a particular borrower's loan.
The October 2026 Senior Loan Officer Opinion Survey shows 4.0% net for credit-card standards: more responding banks reported tightening credit-card standards than easing them. A year earlier it was 4.2%, a difference of about one bank. It covers changes during the previous three months (Q3 2026), not how strict standards are or the availability of every kind of credit.
The Chicago Fed's nonfinancial leverage subindex read -0.46 in the week ending Oct 30, 2026, below zero, the long-run average. A year earlier it was -0.59, a gap within the size of one week's revision. The household debt service ratio was 11.1% in the second quarter of 2026, little changed from 11.2% in Q1 2026. These indicators have different scopes and do not, by themselves, show that every household can borrow easily or that one measure caused later delinquency.
Key Credit & Rate Statistics
The American Distress Index read 47.0 (Typical) in Q2 2026. The composite itself sits higher than 44% of all published quarters since 2005. Two measures on this page are also index inputs: the debt service ratio in the Debt Burden domain and credit card delinquency in the Delinquency domain. APR, the Chicago Fed subindex, and SLOOS remain separate context and do not establish a causal sequence. Full index methodology →
How High Are Credit Card Interest Rates?
The average interest rate on bank credit card accounts was 21.19% in the third quarter of 2026, little changed from 21.39% a year earlier. It ranks eighth highest of 128 quarterly readings since 1994. Its lowest reading in 2014 was 11.82%, and its Q1 2022 reading was 14.56%. TERMCBCCALLNS averages the stated purchase APR across all general-purpose card accounts at a sample of reporting commercial banks, active or not. It is not the separate accounts-assessed-interest series, an individual account's promotional or penalty rate, or the rate on store cards, credit unions or nonbank lenders.
The credit card delinquency rate at insured U.S.-chartered commercial banks was 2.9% in the second quarter of 2026, the same as in Q1 2026. That rate is the share of card balances 30 or more days past due, a different definition from the APR, and the two do not identify the same accounts, interest charges, or a causal relationship.
The average credit card interest rate at U.S. commercial banks is little changed from a year earlier
Average interest rate on credit card plans, all accounts, U.S. commercial banks, not seasonally adjusted. Quarterly, the first quarter of 2000 to the third quarter of 2026.
Full time series: Credit card interest rate indicator (The Card Tax)
The Chicago Fed Nonfinancial Leverage Subindex: How Fast Are Debt Ratios Growing?
The Chicago Fed's nonfinancial leverage subindex is built from two ratios: nonfinancial business debt against GDP, and household mortgage and consumer debt against spending on durable goods plus home building. It tracks how fast those ratios grow each quarter, scaled so that zero is the long-run average and each unit is one standard deviation. A reading below zero means growth in the ratios is below average, not that debt is being paid down. The Chicago Fed links rising values with tighter financial conditions, but the subindex does not measure loan terms or interest rates.
The Chicago Fed's nonfinancial leverage subindex read -0.46 in the week ending Oct 30, 2026, below zero, the long-run average. A year earlier it was -0.59, a gap within the size of one week's revision. In the Chicago Fed's current estimates, it is the highest reading since Mar 22, 2019. Both inputs are quarterly, so the weekly number is a model update, and the Chicago Fed re-estimates the whole history every week. In 2019 the subindex averaged -0.55. It is not the headline NFCI or the Chicago Fed's separate "leverage" subindex, which moves the opposite way.
NFCI Nonfinancial Leverage Subindex, Quarterly Average 2005–Present
Source: Federal Reserve Bank of Chicago data retrieved via FRED (NFCINONFINLEVERAGE). Quarterly averages of weekly readings, latest release.
Full time series: Chicago Fed nonfinancial leverage subindex (The Tightening)
Credit Conditions at a Glance
The latest change is the comparison stored with each indicator: the same period a year earlier for series that are not seasonally adjusted, the prior quarter for those that are. The 2019 and 2007–2009 columns are reference figures from each series, not comparisons.
| Indicator | Current | 2019 average | 2007–2009 high | Latest change |
|---|---|---|---|---|
| Credit card APR | 21.19% | 15.05% | 13.71% | Little changed from 21.39% a year earlier |
| Nonfinancial leverage (National Financial Conditions Index) | −0.46 | −0.55 | 2.77 | Little changed from −0.59 a year earlier |
| Net tightening, credit cards (Senior Loan Officer survey) | 4.0% | 10.1% | 66.7% | Little changed from 4.2% a year earlier |
| Debt service ratio | 11.1% | 11.6% | 15.8% | Little changed from 11.2% in Q1 2026 |
| Mortgage debt service | 5.8% | 5.9% | 9.0% | Little changed from 5.9% in Q1 2026 |
| Credit card delinquency rate | 2.9% | 2.6% | 6.8% | The same as in Q1 2026 |
Are Banks Tightening or Loosening Credit-Card Standards?
The Federal Reserve's Senior Loan Officer Opinion Survey asks participating banks whether their standards for approving credit card applications changed over the past three months. A positive net percentage means more responding banks reported tightening than easing; a negative percentage means the reverse. Standards loosen on net only when the number is below zero. In the July 2020 survey the reading was 71.7%; the credit card series starts in 1996.
The October 2026 reading is 4.0%: more responding banks reported tightening credit-card standards than easing them. A year earlier it was 4.2%, a difference of about one bank. The survey asks about changes over the previous three months (Q3 2026), covers credit-card standards only, and is not seasonally adjusted. It does not establish approval rates, individual access, or later delinquency.
The net share of banks tightening credit card standards is little changed from a year earlier
Net percentage of domestic banks reporting tighter standards for credit card loans, Senior Loan Officer Opinion Survey, not seasonally adjusted. Quarterly, the first quarter of 2005 to the fourth quarter of 2026.
Full time series: SLOOS credit tightening indicator
What Does the Household Debt Service Ratio Measure?
The household debt service ratio measures aggregate required household debt payments as a share of aggregate disposable personal income. The household debt service ratio was 11.1% in the second quarter of 2026, little changed from 11.2% in Q1 2026. It is the lowest ratio since Q1 2025. It ranks 19th lowest of 86 quarters since 2005. The Board's current method starts in 2005; earlier values in public downloads come from an older method that ran at a lower level, so no comparison with earlier decades is made.
The mortgage debt service ratio was 5.8% in the second quarter of 2026, little changed from 5.9% in Q1 2026. It ranks 22nd lowest of 86 quarters since 2005. These aggregate ratios divide everyone's payments by everyone's income, including people with no debt, so they do not describe each paycheck or any one household. They count scheduled payments, not missed ones, and they do not show that APR or lending standards caused the latest movement. For loan-type balance and delinquency measures, see the household debt statistics roundup.
The household debt service ratio is the same as a year earlier
Household debt payments as a share of disposable personal income, United States, seasonally adjusted. Quarterly, the first quarter of 2005 to the second quarter of 2026.
Full time series: Household debt service ratio
High APRs and Lending Standards Measure Different Things
The average commercial-bank APR is 21.19%, while the October 2026 SLOOS reading is 4.0% net for credit-card standards. TERMCBCCALLNS is the stated APR averaged across all general-purpose card accounts at reporting banks; SLOOS measures the net share of surveyed banks reporting a change in standards. Neither number, alone or together, supplies an approval rate or a causal path to delinquency. Our guide to federal debt-collection rights explains what collectors can and cannot do.
Read: The Two-Economy Problem →Questions about interest rates
What is the current average credit card interest rate?
The average interest rate on bank credit card accounts was 21.19% in the third quarter of 2026, little changed from 21.39% a year earlier. It is the highest rate since Q3 2025. It ranks eighth highest of 128 quarterly readings since 1994. The source is the Federal Reserve's quarterly survey of card-issuing commercial banks (FRED series TERMCBCCALLNS). It averages the stated purchase APR across all general-purpose card accounts at the reporting banks, including accounts that pay in full and pay no interest, so it is not the rate paid by people carrying a balance, the rate on a new card offer, or every cardholder's rate.
What does the Chicago Fed nonfinancial leverage subindex measure?
It tracks how fast two debt ratios grow each quarter: nonfinancial business debt against GDP, and household mortgage and consumer debt against spending on durable goods plus home building. Zero is the long-run average; a reading below zero means the ratios are growing more slowly than average, not that debt is being paid down. The Chicago Fed's nonfinancial leverage subindex read -0.46 in the week ending Oct 30, 2026, below zero, the long-run average. A year earlier it was -0.59, a gap within the size of one week's revision. It is not the headline NFCI or the Chicago Fed's separate "leverage" subindex, and it does not measure loan terms or interest rates.
Are banks tightening credit card standards in 2026?
Yes, on net, for credit cards. In the Federal Reserve's October 2026 Senior Loan Officer Opinion Survey, the net share of banks reporting tighter standards for approving credit card applications was 4.0%, meaning more responding banks reported tightening credit-card standards than easing them. A year earlier it was 4.2%, a difference of about one bank. The survey asks about changes over the previous three months (Q3 2026), not how strict standards are. About 45 banks answer the credit card question, so one bank is worth about 2 points, and the series does not describe other kinds of loans.
What is the household debt service ratio?
It is aggregate required household debt payments as a share of aggregate disposable personal income, from the Federal Reserve Board. The household debt service ratio was 11.1% in the second quarter of 2026, little changed from 11.2% in Q1 2026. It ranks 19th lowest of 86 quarters since 2005. The current method starts in 2005, so no comparison with earlier decades is made. It is not a share of each paycheck or a measure of missed payments.
How do interest rates connect to the American Distress Index?
The aggregate debt service ratio is an input to the American Distress Index's Debt Burden domain, and credit card delinquency is an input to its Delinquency domain. Credit card APR, the Chicago Fed subindex, and SLOOS are separate context measures. They do not establish that a change in rates or standards caused a later delinquency reading. The index read 47.0 (Typical) in Q2 2026. The composite itself sits higher than 44% of all published quarters since 2005.
Data Sources
Federal Reserve data retrieved via FRED
Credit card APR (TERMCBCCALLNS), household debt service ratio (BOGZ1FL010000346Q + TDSP), mortgage debt service ratio (MDSP), SLOOS credit card standards (DRTSCLCC), and credit card delinquency at insured U.S.-chartered commercial banks (DRCCLACBS). Quarterly, retrieved via the FRED API.
Freddie Mac / FRED
Average 30-year fixed mortgage rate from the Freddie Mac Primary Mortgage Market Survey (MORTGAGE30US), published weekly and retrieved via FRED.
Federal Reserve target range data retrieved via FRED
Federal funds target range from the Board of Governors of the Federal Reserve System (DFEDTARL and DFEDTARU), daily, retrieved via FRED.
Chicago Fed
National Financial Conditions Index nonfinancial leverage subindex (NFCINONFINLEVERAGE). Published weekly and retrieved via FRED; the history is re-estimated each week. It is context on this page and is not an input to the American Distress Index.
American Default Research
American Distress Index composite score, domain scores, and cross-indicator analysis. Methodology: five equal-weighted domains, each the average of its inputs' percentiles within their own history. Full methodology →
We write with assistance from AI tools. Figures come from the data and sources named on this page.
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New data, and changes to the American Distress Index. Nothing else.
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