NEW YORK — Millions of Americans and credit union members are cleaning up from Christmas today and perhaps still enjoying a holiday high, but expenses from the holiday are soon going to turn the eggnog sour for many who put their purchases on high-interest credit cards–‘presenting’ credit unions with a renewed opportunity for card refinancings.
The reality of just how much those purchase are going to ultimately cost will be especially apparent in the weeks and months ahead for those who used store cards for purchases.
Moreover, this holiday season was expected to see a surge in purchases made via interest-free buy now, pay later (BNPL), pay-in-four offerings that can come with hefty interest rates when the purchaser doesn’t make all four payments.
A recent LendingTree survey found approximately 37% of Americans took on holiday debt this season, averaging roughly $1,223 per person, the highest level since 2022. Most — 62% — said the balances are on general credit cards, while 32% reported using store credit cards tied to retail holiday purchases.
Rates on Their Way Down? Says Who?
As the CU Daily reported earlier, the average annual percentage rate (APR) of retail credit cards remains near a record high average of 30.14% APR in 2025, according to Bankrate’s annual Retail Cards Study. That was down from 30.45% in 2024 but still the second-highest since Bankrate started tracking retail credit card interest rates in 2021, the company said.
Among store-only cards (those that can only be used at a specific store or chain of stores), the average APR is 31.64%, according to Bankrate. The average APR among co-branded cards is slightly lower at 28.65%. (Co-branded cards have a retailer’s name and a card network logo such as Visa or Mastercard, and can be used anywhere that network is accepted.)
In total, Bankrate found 63 out of the 110 retail credit cards included in the study have an APR over 30%. The highest retail credit card APR is 35.99% and is a tie between 13 retail credit cards, including 12 store-only cards and one cobranded card.
Feeling the Sting
Not surprisingly, many consumers and members carrying balances into 2026 may feel the sting of high interest, making card refinancing offers a benefit to both the member and the credit union.
“Even a few percentage points can make a meaningful difference once you carry a balance for months,” one analyst familiar with debt-refinancing programs told the CU Daily.
