Odd Lots

This Is Why Credit Card Interest Rates Are So High

November 28, 2025·44 min·5-min readinterviewbusiness
Podzilla Summary (5 min)
TLDR
Credit card interest rates are shockingly high—averaging around 23%—yet default rates only explain a fraction of that spread. The real drivers are a mix of risk premiums, massive marketing costs, and operating expenses, not just borrower risk.


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Itamar Drechsler is a finance pr

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Guest

I

Itamar Drechsler

interview on Odd Lots

Mentions

Books, people, and resources mentioned in this episode.

People

Itamar Drechsler

Companies

American ExpressCapital OneVisaMasterCardDiscover

Products & Tools

BNPLStablecoins

Research & Papers

Why Are Credit Card Rates So High?by Itamar Drechsler

Topics

BankingEntrepreneurshipFintech

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