What will the latest prime rate bump mean to your pocket? Wallet hub Analyst Jill Gonzales says last week's prime rate bump will probably change your life. "Once again, The Federal Reserve has raised our interest rates. What that means is that now we will owe even more money on some of our loans!" She says your house note and car payment are probably fixed so there's no increase there. But credit cards are another story. "That increase with charge credit card users at least an additional $1.6,000,000,000.00 in the next year! Gonzales predicts new auto loans rates will also rise.
Because the Fed raised prime by point 2-5 last week Gonzales says to watch out if you are carrying an interest on your credit cards.
"Pretty much every credit card is tied to the Prime Rate which is tied to The Fed. So, if you have a credit card, there's a 99% chance that that Federal Rate Hike is costing you Money!" She says because your house note and hopefully your car payment have fixed rates - they will stay the same. She says, "For Mortgages, we don't really expect much of a change in mortgage rates following this move."
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Credit Card Interest Rates risingPhoto: Getty Images