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Data hub · Credit cards · Interest rates Checked 3 Jun 2026

UK Credit Card Interest Rate Statistics 2026

There are two UK credit card interest rates, and they tell different stories. The average advertised APR hit 35.8% in early 2026, a 20-year high (Moneyfacts). But the rate borrowers actually pay on their balances, the Bank of England's effective rate, was 21.2%. The real story is the widening gap: card rates have stayed high and pulled further from the Bank Rate, even as the base rate steadied.

How to read this page
  • The advertised (representative) APR is the headline rate used to compare cards. Lenders only have to give it to 51% of approved applicants, so it is a marketing figure, not what everyone pays.
  • The effective interest rate is the Bank of England's measure of what borrowers actually pay on interest-bearing balances. It is the truer cost of carrying a balance.
  • The Bank Rate is the Bank of England's base rate. The spread is the gap between the card rate and the Bank Rate.
By Business Expert research team · Last checked 3 Jun 2026 · How we check the data →
Data period: 2026 – 2026-04·Last reviewed: 3 Jun 2026·Quarterly updates·Sources: Bank of England · Moneyfacts·⇩ Data (CSV)
1.

UK credit card interest rates at a glance

The advertised rate used in marketing, the effective rate borrowers actually pay, and how far both sit above the Bank Rate.

Average advertised APR
35.8%
▲ 20-year highFeb 2026
The cross-market average advertised credit card APR was 35.8% in early 2026, the highest since 2006. This is the headline comparison rate, not what most people pay.
Moneyfacts2026
Effective rate on balances
21.2%
▼ from 21.65% in FebApr 2026
The Bank of England effective rate, what borrowers actually pay on interest-bearing balances, was 21.2% in April 2026, easing slightly from February.
Bank of England, Effective Rates2026
Bank Rate
3.75%
base rate2026
The Bank of England base rate. Card rates are several times higher and have not fallen back in step.
Bank of England2026
Spread over Bank Rate
17.45pp
▲ wideningApr 2026
The effective card rate sits 17.45 percentage points above the Bank Rate, a gap that has widened since 2024 despite the base rate stabilising.
Derived: BoE effective rate less Bank Rate2026
2.

The advertised rate and the real rate are far apart

The 35.8% and 21.2% figures both describe credit card interest, but they measure different things. Reading one as the other is the most common mistake.

UK credit card interest rates compared

MeasureRatePeriodWhat it is
Average advertised APR35.8%Feb 2026Headline comparison rate (Moneyfacts)
Effective rate on balances21.2%Apr 2026What borrowers actually pay (BoE)
Effective rate on balances21.65%Feb 2026What borrowers actually paid (BoE)
Bank Rate3.75%2026Bank of England base rate
Source: Moneyfacts (advertised APR) and Bank of England Effective Interest Rates (effective rate and Bank Rate). The two are not directly comparable measures. Checked 3 Jun 2026
What it costs to carry a balance

On a £1,000 balance left to revolve for a year, the 21.2% effective rate works out at roughly £212 in interest. At the 35.8% advertised rate it would be around £358, but most borrowers are not on that headline figure. The real cost sits closer to the effective rate.

3.

Why card rates stay high when the base rate steadies

Credit card rates rose as the Bank Rate climbed, but they have not come back down in step. The result is a spread that keeps widening.

Sticky on the way down

When the Bank Rate rose through 2022 and 2023, card rates followed. As the base rate has steadied, card rates have stayed elevated, pushing the effective rate to 17.45 percentage points above the Bank Rate and the advertised average to a 20-year high. Card pricing reflects more than the base rate: default risk, the cost of rewards and interest-free periods, and the simple fact that revolving balances are sticky.

That is why the advertised average can hit a record even as the effective rate eases slightly. The headline is driven by the priciest end of the market and by lenders repricing new cards, while the effective rate reflects the whole stock of balances people already hold.

Advertised average
35.8%
20-year high
Effective rate
21.2%
What borrowers pay
4.

What high card rates mean for borrowers and businesses

At these rates, the cost of carrying a balance is significant, and the gap between paying in full and revolving has rarely been wider.

The practical points

  • Paying in full avoids interest entirely. The headline rate only bites on balances carried past the interest-free window. Transactors who clear the balance each month pay no interest at any of these rates.
  • Revolving is expensive now. At a 21% effective rate, carrying a balance costs far more than most savings or investments return. The arithmetic favours clearing card debt first.
  • 0% deals shift the maths. Balance-transfer and purchase offers can suspend interest for a period, which is why the advertised rate alone is a poor guide to the real cost of a specific card.
  • For business cards, weigh the spend. A business card used as a payment and rewards tool, cleared monthly, is a different product from one used to borrow. Compare options in our credit cards guide.
On £1,000 revolved
~£212/yr
At 21.2% effective
Paid in full
£0
No interest at any rate
5.

Advertised APR, effective rate and the rate you pay

Three different rate measures circulate in credit card coverage. Knowing which is which prevents the gap from being misread as a contradiction.

Same product, different measures

The advertised representative APR is a marketing and comparison figure: lenders must offer it to at least 51% of accepted applicants, so the other 49% can pay more. The effective interest rate is the Bank of England's measure of interest actually charged on outstanding balances. They are not the same number and should not be compared as if they were. The rate any individual pays depends on their card, their credit profile and whether they clear the balance.

A record advertised rate does not mean everyone is paying more. The 35.8% advertised average reflects new-card pricing at the expensive end of the market. The effective 21.2% is the better guide to what borrowers actually pay, and it eased slightly between February and April 2026. Quoting the advertised figure as "the" credit card interest rate overstates the typical cost.
6.

Sources and methodology

The effective rate and Bank Rate come from the Bank of England's Effective Interest Rates data; the advertised market-average APR from Moneyfacts.

2 sources Source register ▾
SourcePublisherPeriod coveredTypeLast checked
Effective Interest RatesBank of EnglandTo Apr 2026Central bank3 Jun 2026
UK Credit Card TrendsMoneyfactsTo Feb 2026Market data3 Jun 2026
How we check the data ▾

Effective rate from the Bank of England

The 21.2% effective rate and the 3.75% Bank Rate come from the Bank of England's published Effective Interest Rates series, the authoritative measure of interest actually paid.

Advertised rate from Moneyfacts

The 35.8% average advertised APR is a cross-market figure from Moneyfacts. We label it as advertised and keep it separate from the effective rate.

The spread is derived

The 17.45 percentage-point spread is the effective rate less the Bank Rate, and is marked as derived.

Data integrity

The effective rate and Bank Rate map to the Bank of England; the advertised APR to Moneyfacts. The two rate types are kept distinct, the spread is labelled as derived, and the advertised figure is not presented as what borrowers pay. Last full review: 3 Jun 2026.

Business Expert · UK Payments Hub · Credit card interest rates · 2026.06 Updated 3 Jun 2026 · Sources and methodology
Credit card rates FAQ

Common questions about UK credit card interest rates

What is the average credit card interest rate in the UK?
There are two figures. The average advertised APR was 35.8% in early 2026 (Moneyfacts), a 20-year high, but the Bank of England effective rate, what borrowers actually pay on balances, was 21.2% in April 2026.
Why is the advertised APR higher than the rate I pay?
The advertised representative APR is a comparison figure that lenders only have to offer to 51% of approved applicants, and it is pulled up by the most expensive cards. The effective rate (21.2%) is the Bank of England's measure of interest actually charged on balances, and is the truer cost.
Are UK credit card rates going up or down?
The advertised average is at a 20-year high, while the effective rate eased slightly from 21.65% in February 2026 to 21.2% in April. Card rates rose with the Bank Rate but have not fallen back in step, so the gap over the 3.75% base rate keeps widening.
How much does carrying a credit card balance cost?
At the 21.2% effective rate, a £1,000 balance left to revolve for a year costs roughly £212 in interest. Clearing the balance in full each month means paying no interest at all, at any of these rates.
What is the difference between APR and the effective interest rate?
APR is an advertised, standardised comparison rate. The effective interest rate is the Bank of England's measure of interest actually paid on outstanding balances. They are different measures and should not be compared as if they were the same number.