When could credit card interest rates become affordable again? Experts weigh in

Carrying any amount of credit card debt is incredibly expensive right now, and that’s due, in large part, to how high credit card rates are in today’s economic landscape. The average credit card interest rate in the U.S. currently stands at 21.37%, just slightly lower than the all-time high of 22.8% at the end of 2023. Today’s high card rates are nearly double the 12.9% average annual rate seen in 2013.

Of course, higher credit card rates have consequences for cardholders, namely in the form of higher balances that are harder to fit into already stretched budgets. Credit card debt per household rose 3.5% in the third quarter of 2024, according to Experian data, reaching $6,730 on average. Credit card payment delinquencies over 90 days have also increased recently, rising by 8.5% in the first quarter of 2025 to hit 12.3%, the highest rate since 2011.

And, while cardholders are likely hoping that the interest charges on their card debt will get more affordable soon, determining when credit card rates may drop can be a tricky proposition. The Federal Reserve continues to maintain a cautious stance on interest rate cuts, and after pausing the federal funds rate at its May meeting, the Fed didn’t offer any firm insight into when rate cuts will happen. The committee seems intent on monitoring key economic indicators before making a move in either direction.

Without a clear signal from the Fed, we took the question to the experts: When could credit card interest rates become affordable again? Here’s what we found.

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When could credit card interest rates become affordable again? 

The Federal Reserve cutting its benchmark rate could help with lowering credit card rates, experts say. Still, numerous other elements come into play with setting card rates. 

“Credit card interest rates move at a slower pace than the Fed’s benchmark rate. Even if the Fed begins cutting rates, lenders weigh other factors heavily, like the risk of default and their operating margins,” Craig Toberman, a partner at Toberman Becker Wealth, says.

In other words, even if the federal funds rate comes down later this year or in 2026, it won’t automatically bring credit card APRs down. Card issuers will want to see real improvements in delinquency rates and other metrics before lowering APYs on their credit cards. That seems unlikely in the near future, given the recent jump in delinquencies and inflation rates that remain above the Fed’s target rate.

“Credit card rates track short-term interest rates set by the Fed, but they’re also influenced by consumer risk, lender margins and default trends,” said Christopher Stroup, certified financial planner and founder of Silicon Beach Financial. “For rates to fall meaningfully, we’d need a sustained drop in the fed funds rate and improved consumer credit metrics that reduce perceived lending risk.”

Are lower credit card rates coming soon?

We likely won’t see lower credit card rates, at least not for a while, experts say. Credit card rates APYs could stay elevated well into 2026 instead. 

“We’d expect only modest relief over the next six to 24 months,” Stroup said. “Even if the Fed cuts rates, credit card APRs may hover near record highs due to rising consumer debt levels and tightened lending standards. For now, high rates are the norm, especially for borrowers without excellent credit profiles.”

And with the strength of the economy still unclear, predicting when rates will truly drop may be a futile exercise. 

“The only certain prediction is that our economy will remain unpredictable for many more months,” said Howard Dvorkin, CPA and chairman of Debt.com. “Until we have clarity about the on-again-off-again tariffs and their impact, I wouldn’t count on rates dropping.”

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How to handle your debt while waiting for card rates to drop

If you’re struggling to make minimum credit card payments, the first thing you should do is to call your card issuer to ask if they offer a hardship rate reduction. 

“If you’ve been a good long-time customer, you just might get a slight decrease,” says Dvorkin. 

Also, explore debt repayment strategies like the debt avalanche and debt snowball methods, which can help you prioritize which cards to pay down first. Low-interest debt consolidation loans and 0% interest balance transfer credit cards can also help you reduce your debt rate while cutting borrowing costs.

If you’re behind on payments or your balances keep growing despite regular efforts to pay them down, it may be time to explore other debt relief options, like credit card debt forgiveness or a debt consolidation program. These can help by either reducing what you owe or combining your balances into a single payment, ideally at a lower interest rate.

The bottom line

Unfortunately, it doesn’t look like credit card rates will fall in the near future. Even if the Fed cuts its benchmark rate, it could be a while before credit card companies follow suit. If you’re struggling to get your card debt under control while waiting for lower credit card rates, focus on bringing down your debt by making extra payments when you can — and it may benefit you to look into lower-cost ways to borrow, too.