Average Retail Credit Card APR Remains Above 30%, Near a Record High

Despite Fed rate cuts, about a quarter of the sample increased rates over the past year

NEW YORK – September 15, 2025 – Holiday shopping season is almost here, and many stores will be offering promotions and encouraging shoppers to open retail credit cards. Retail credit cards charge an average 30.14% APR this year, according to Bankrate’s annual Retail Cards Study. That’s down from 30.45% in 2024 but still the second-highest since Bankrate started tracking retail credit card interest rates in 2008. Click here for more information:

https://www.bankrate.com/credit-cards/news/retail-store-credit-card-survey/

Among store-only cards (those that can only be used at a specific store or chain of stores), the average APR is 31.64%. The average APR among cobranded cards is slightly lower at 28.65%. Cobranded cards have a retailer’s name and a card network logo such as Visa or Mastercard, and can be used anywhere that network is accepted.

The highest retail credit card APR is 35.99% and is a tie between 13 retail credit cards, including 12 store-only cards and one cobranded card. These retailers include Academy Sports + Outdoors, Banter by Piercing Pagoda, Burlington, Good Sam, Jared the Galleria of Jewelry, Kay Jewelers, Michaels, Petco, Saks, Sterling Family of Jewelers, Victoria’s Secret, and Zales. In total, 63 out of the 110 cards surveyed in the study have an average interest rate over 30%. On the other hand, the two cards with the lowest APRs are the Amazon Secured Card (10%) and the Military Star Card (14.49% on most purchases, 0% for eligible military clothing purchases).

“Card issuers say they charge higher interest rates on retail cards because these cards are easier to get and delinquencies have increased in recent years,” said Bankrate Senior Industry Analyst Ted Rossman. “But these are really high rates and they often apply to all customers who carry balances. Even if you have a stellar credit score, if you carry a balance on a retail card, there’s a good chance it will cost you dearly.”

Since Bankrate’s 2024 study, the Federal Reserve has cut interest rates by 1 percentage point, but 23 of the 110 retail credit cards in the survey have increased their APRs over the past 12 months. The retail card with the biggest APR increase compared to last year is the Saks Credit Card, which jumped from 29.24% in 2024 to 35.99% in 2025.

The rise of buy now, pay later services has contributed to the retail credit card space shrinking in recent years. According to Equifax data, only 16.8 million private-label credit cards originated in 2024, compared to 43.9 million in 2014.

“If you’re certain that you can pay in full to avoid interest, there are two occasions when retail cards can work to your advantage,” Rossman added. “One is getting a solid return on purchases from retailers that you buy frequently from. Amazon, Target, and Best Buy are among those that offer up to 5% cash back when you buy from them using their credit cards. The other appealing instance is when you can get a nice discount off a big purchase you would have made anyway, such as 20% off a new appliance or a bunch of holiday gifts. Just make sure you pay in full before interest hits.”

Methodology:

Bankrate surveyed 110 retail credit cards on July 21, 2025, using publicly available terms and conditions disclosures. We included each of the 100 largest retailers, as defined by the National Retail Federation based on 2024 sales, that offer credit card programs. The sample included 55 co-branded cards and 55 store-only cards. When a card offered an APR range, we included the midpoint of the range in the overall averages.

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For more information:
Fontaine Gwynn
Publicist – Bankrate
fontaine.gwynn@bankrate.com
(917) 267-8710
Bankrate