What is the Mastercard interest rate?

The Mastercard interest rate could be anywhere between 13% to 36% in most cases, depending on the card and each applicant’s creditworthiness. Just keep in mind that the interest rate isn’t actually set by Mastercard. The issuers are in control of setting the rates. As a card network, Mastercard is more about where the card is accepted than anything else.

Things to Know About Mastercard’s Interest Rates

• Your credit score plays an important factor.Generally, the better your credit history, the better the interest rate. For example, the BankAmericard® credit card interest rate ranges from 14.99% - 25.99% Variable, depending on your credit standing.
• The credit card type also affects the interest rate.Most secured credit cards offer a single rate, like the Capital One Platinum Secured Credit Card, which has a regular APR of 28.99% (V).Rewards credit cards like the Citi Strata Premier® Card, on the other hand, have a higher maximum interest rate (19.49% - 27.49% (V)) to compensate for the additional benefits. Note that the better your credit standing is, the lower your interest rate will be.
• Credit cards usually have multiple interest rates.There are separate rates for purchases, balance transfers, cash advances, and late payments. Cash advance APRs can be as high as 36%. The penalty interest rate for late payments can be up to 29.99%, but not all credit cards have it. The Citi Simplicity® Card doesn't have a penalty interest rate, for example.
• Nearly all Mastercard interest rates are variable rather than fixed.Variable rates are tied to an index rate, usually the prime rate that banks use for their most creditworthy customers.

If a Mastercard with the lowest possible interest rate is your priority, you may need to look beyond the big banks and explore options from credit unions. Just keep in mind that credit unions have specific membership requirements, so make sure you’re eligible before applying.