Record Interest Rates on Store Credit Cards Strain American Consumers

The Rising Interest Rates on Store Credit Cards

Retail credit card interest rates have reached an all-time record, according to new data from Bankrate. The average APR for retail credit cards is 30.45% this year, an increase from 28.93%26.72% two years prior, and 24.35% three years back. For individuals who typically carry a $1,000 balance, the annual interest fees have surged to $304.50 this year, compared to $243.50 in 2021.

Impact on Consumers and Retail

Bankrate's study highlighted several retailers with notably high APRs, including Academy Sports + Outdoors Credit Card, Petco, Burlington, and others, all carrying an APR of 35.99%. This stark difference emphasizes that retail credit cards generally have much higher rates than the national average of 20.78% for all credit cards.