Credit card interest rates have historically been a lot higher than the rates on auto loans and mortgages, and they blow bank account yields out of the water. The average credit card interest rate hit an all-time high in Q1 2023, in large part because credit card issuers are adding an unusually high margin to their index rate, the prime rate, which has also increased in recent months.
To gauge how consumers feel about unprecedentedly high credit card rates, WalletHub conducted a nationally representative online survey. We questioned participants on a variety of subjects, including their understanding of how credit card interest rates work, who they think is to blame for high rates, and what they would do to avoid paying interest. You can check out the results in the following infographic.
Key Stats
- 31% of Americans describe credit card interest rates as "crazy high".
- 91% of people think credit card companies are greedy.
- 81% of people say the government should put a cap on how high credit card interest rates can get.
- 38% of Americans say credit card companies are responsible for record-high credit card interest rates.
- Nearly 4 in 5 Americans say they are less likely to apply for a new credit card due to higher credit card interest rates.
- 45% of Americans would give up sweets for a year to avoid paying interest on credit cards.
Full Details Overall
| How would you describe credit card interest rates right now? | |
|---|---|
| High | 43% |
| Crazy high | 31% |
| Average | 23% |
| Low | 2% |
| Super low | 1% |
| Unless someone told you, would you have realized that credit card interest rates are the highest they’ve ever been? | |
| Yes | 60% |
| No | 40% |
| Credit card interest rates are at a record high. Has this affected your finances? | |
| Yes | 52% |
| No | 48% |
| Do higher credit card interest rates make you want to get a new credit card more or less? | |
| Less | 79% |
| More | 21% |
| Should the government put a cap on how high credit card interest rates can get? | |
| Yes | 81% |
| No | 19% |
| What would you be willing to do to avoid paying credit card interest? | |
| Give up sweets for a year | 45% |
| Move to a different country | 20% |
| Move in with your in-laws | 12% |
| Change your name | 11% |
| Get an “APR” tattoo | 11% |
| Do you understand how credit card interest works? | |
| Yes | 82% |
| No | 18% |
| Who is responsible for the record-high credit card interest rates? | |
| Credit card companies | 38% |
| Overall economy | 33% |
| Government | 20% |
| Consumers | 9% |
| How do record-high credit card interest rates make you feel? | |
| Frustrated | 39% |
| Indifferent | 21% |
| Overwhelmed | 18% |
| Angry | 11% |
| Depressed | 11% |
| Are credit card companies greedy? | |
| Yes | 91% |
| No | 9% |
Note: Percentages may not total 100% due to rounding.
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