Credit cards, home equity lines of credit and personal loans will be directly affected by the Fed's policy shift.
which is what banks charge one another for short-term borrowing, is not the rate that consumers pay, the Fed's moves still affect the borrowing and saving rates they see every day.
"From an interest rate standpoint, this means lower for longer, and lower more often," said Greg McBride, the chief financial analyst for Bankrate.come with a variable rate, which means there's a direct connection to the Fed's benchmark rate. Since the central bank lowered its benchmark rate to near zero in March, credit card rates have hit a low of 16.03%, on average, according to Bankrate.com.
Other short-term borrowing rates are even lower. The average interest rate on personal loans is currently about
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