Credit card interest rate forecast for 2026: Rate cuts will bring little relief to cardholders

The average credit card interest rate isn’t likely to drop quite as much as the federal funds rate , since the credit card average includes new customer offers. Most credit cards have variable rates that consist of a percentage added to the federal funds rate. So, when the Fed rate falls, rates on existing cards follow. But when it comes to new card offers, a card issuer can simply tweak the rate formula — therefore, hiking up interest rates for new cardholders and raising the average. Issuers often charge ...