Will Credit Card Interest Rates Drop in June? Experts Say Unlikely—Here’s What Borrowers Should Do Instead

June 3, 2025 — If You’re Carrying a Credit Card Balance, Don’t Expect Relief This Month

As of early June, individuals with credit card debt shouldn’t anticipate any major financial relief. Despite increasing consumer debt and mounting pressure for reduced borrowing costs, credit card interest rates are projected to remain close to record levels this month, with no indication of immediate action from the Federal Reserve.

The average credit card APR currently stands at 21.37%, hovering just below last year’s historic peak. With inflation remaining stubborn and the Fed unlikely to adjust rates during its June 17–18 meeting, borrowers are expected to continue facing high interest costs. CME Group data suggests there’s less than a 5% probability of a rate cut in June.

While rate cuts might occur later in 2025, any changes are expected to be limited. And because credit card APRs are influenced by a combination of market forces beyond just the Fed’s actions, any drop in borrowing costs will likely be delayed. In fact, during the last period of rate reductions, credit card interest rates actually climbed.