(NewsNation) — You should probably think twice the next time a retailer asks if you want to save money by signing up for a credit card.

According to a new Bankrate study, the average retail credit card interest rate is now at a record 30.45%. That’s up more than six points from 2021 and much higher than the 21% average across all types of credit cards.

Store credit card interest rates hit new high

Store credit cards are a popular way for retailers to build brand loyalty, offering perks like rewards and discounts. But they also come at a steep price, warned Ted Rossman, a senior industry analyst at Bankrate.

“The retailer may dangle 10% off today’s purchase if you sign up, but that’s not worth it if you’re going to pay a 30% interest rate for years to come,” he said in a statement.

The Federal Reserve’s rate hikes have helped fuel the recent surge. The rising cost of borrowing has pushed credit card interest rates up nearly 40% since 2021.

Although the Fed hasn’t raised rates since July 2023, Bankrate said retail card rates have continued to rise and are “unusually high this year.” Part of that is because certain retailers are pulling up the average, charging upwards of 35.99% when you carry a balance.

Bankrate’s survey, conducted in early September, examined 108 store cards from the country’s largest retailers and found that some charge far more than others.

Academy Sports + Outdoors, Big Lots, Burlington, Good Sam, Michaels and Petco were at the top of the list, offering cards at 35.99%, the highest annual percentage rate (APR) the study found.

American Eagle, Athleta, Banana Republic, HSN, JCPenney, Old Navy, QVC, Tire Rack, TJ Maxx and Walgreens all had cards that were not far behind at 34.99%.

Other brands offered interest rates that were more in line with regular credit cards, like Costco (20.49%), Bass Pro Shops (21.12%) and IKEA (21.99%), Bankrate found.

Are retail credit cards ever worth it?

Rossman said there are “narrow circumstances” where retail cards may be worth it but urged caution.

“Don’t fall into a trap and apply for one of these impulsively at the checkout counter,” he said. “It’s fine to say ‘no’ or ‘not right now’ or ‘I’m going to think about it.’

As for when it might make sense, Rossman pointed to 5% cash-back offers at stores like Amazon, Best Buy and Target.

“For a loyal shopper who pays in full and avoids interest, that’s a compelling value proposition,” he said.

Retail credit cards typically have higher interest rates for a few reasons.

Store cards tend to have lower credit requirements, so to offset the risk to card issuers, they often have higher rates.

Increased competition from buy now, pay later (BNPL) services has also put more pressure on traditional credit products recently, Bankrate noted in its report.

As with all credit cards, the best way to avoid interest charges is to always pay on time and in full.