The Prime Rate is the base interest rate that commercial banks charge their most creditworthy corporate customers. It is the foundation for most consumer loan pricing, including credit cards and home equity lines of credit (HELOCs).
Current Prime Rate
As of December 16, 2025, the current U.S. Prime Rate is:
6.75%
The next scheduled FOMC meeting to review interest rates is January 28, 2026.
Historical Trend (Past 5 Years)
| Date | Prime Rate | Change |
|---|---|---|
| Dec 16, 2025 | 6.75% | -1.25% |
| Sep 18, 2024 | 8.00% | -0.50% |
| Jul 26, 2023 | 8.50% | +0.25% |
| May 03, 2023 | 8.25% | +0.25% |
| Mar 16, 2022 | 3.50% | +0.25% |
| Jan 01, 2021 | 3.25% | (Base) |
How It Affects Your Credit Card
Most credit cards have Variable APRs. Your specific rate is usually calculated as:
[Current Prime Rate] + [Bank Margin] = [Your Final APR]
For example, if the Prime Rate is 6.75% and your card’s margin is 12.49%, your total purchase APR would be 19.24%. When the Prime Rate changes, your card’s APR will typically change by the same amount on your next billing cycle.
Data sourced from the Federal Reserve Board of Governors.