Credit Card Rates: What You Need to Know in 2025

Credit card rates can feel confusing, but they’re just the cost of borrowing on a card. The most common number you’ll see is the APR – the annual percentage rate. It tells you how much interest you’ll pay if you carry a balance. Different cards have different APRs, and the rate you get depends on a handful of factors you can actually control.

How APRs Are Set and What’s Typical Now

Banks look at your credit score, income, and overall debt when they decide your rate. In 2025, average APRs for new cards sit around 18% to 22% for people with good credit (700‑749). If your score is lower, you might see rates climb to 26% or higher. Premium rewards cards often start at 20% or more because they bundle travel perks and cash‑back offers.

Balance‑transfer cards usually advertise a lower introductory rate – sometimes 0% for 12‑18 months – then jump to a higher rate after the promo ends. That jump can be steep, so knowing the post‑promo APR is crucial before you move a balance.

Quick Ways to Lock in a Lower Rate

First, check your credit report for errors. A single mistake can shave a few points off your score and push you into a higher APR bracket. Second, negotiate. If you’ve been a reliable customer, call your issuer and ask for a rate reduction; many banks will match a competitor’s offer.

Third, consider a balance‑transfer if you have high‑interest debt. Move it to a 0% card, but pay off the balance before the promo expires to avoid the higher rate. Fourth, pay more than the minimum each month. Reducing your balance faster keeps your usage ratio low, which can improve your score over time and make you eligible for better rates on future applications.

Finally, shop around. Websites that compare credit cards list the current APR ranges for each product. Spotting a card with a lower standard rate can save you hundreds of pounds in interest over a few years.

Remember, the APR is only part of the picture. Look at any annual fees, reward structures, and how the card fits your spending habits. A card with a 0% intro rate but a £100 annual fee might not be worth it if you don’t need the extra perks.

Bottom line: Your credit card rate isn’t set in stone. By cleaning up your credit file, negotiating, and being smart about balance transfers, you can land a rate that keeps borrowing costs low. Keep an eye on the numbers, stay on top of payments, and you’ll be in a better spot to choose the right card for your needs.