Mastercard interest rates are 10.74% to 36%, depending on the card and each applicant’s creditworthiness. 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. Setting specific interest rates is a card issuer’s job, though, not Mastercard’s.
Generally, the better your credit history, the better the interest rate. For example, the Bank of America Cash Rewards Mastercard interest rate ranges from 16.24% to 26.24%, depending on your credit. Credit card type also affects the interest rate. Most secured credit cards offer a single rate, like Capital One Secured: 26.49% (V). Rewards cards like Citi ThankYou Premier – 17.74% to 25.74% (V) – often have higher maximum interest rates to compensate for the additional benefits .This could also be a sign that more than just people with excellent credit can get approved.
Notable Mastercard Interest Rates:
Lowest Mastercard interest rate: 10.74% (First Progress Platinum Prestige Mastercard Secured)
Highest Mastercard interest rate: 36% (First Premier Bank Mastercard)
Best 0% Mastercard (balance transfer): 0% for 21 months(Citi Simplicity)
Best 0% Mastercard (purchases): 0% for 18 months (HSBC Gold Mastercard Credit Card)
Credit cards will always have multiple interest rates. There are separate rates for purchases, balance transfers, cash advances and late payments. Cash advance APRs range from 24.99% to 26.99%. Penalty interest rates for late payments can be a maximum of 29.99%. The Barclaycard Arrival Plus and Citi Simplicity cards do not have penalty interest rates, for example.
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. Credit unions have specific membership requirements, so check to make sure you’re eligible.