Click to view our Accessibility Statement or contact us with accessibility-related questions

In the market for a new car? Act fast.

Share This Page

Last month’s Fed rate hike may not be the last. Here’s where you may start feeling the increases.

1. Credit cards

Carry a balance? If so, you may notice the interest rate you pay is rising. That’s why it’s more important than ever to pay down credit card debt now. If the Fed keeps raising rates, borrowing may get even more expensive, making it even harder to pay off credit card debt.

2. Mortgages

If you have a variable-rate mortgage, your interest rate may have started increasing or it may increase with further rate hikes. And if you’re shopping around for a mortgage now, rates are likely higher than they would’ve been several months ago.
3. Student loans

Do rising interest rates affect your student loans? It depends. If they’re private loans with variable rates, chances are Fed rate hikes will eventually translate into higher rates, if they haven’t already. If your rate is fixed, it’ll stay that way even if the Fed raises rates. If you have Federal loans originated before 2006, they may have variable rates. Make sure to look at your specific loan terms for details.

Whether your rates are fixed or variable, high or low, based on revolving debt or installment loans, Fed hikes are a good reminder to manage your debt responsibly. When rates rise, the cost of borrowing goes up, so it’s an ideal time (if you can) to try to pay down debt with high and variable rates.

Take the next step toward financial health
See yours now

Advertiser Disclosure: TransUnion Interactive may have a financial relationship with one or more of the institutions whose advertisements are being displayed on this site. In the event you enter into a product or service relationship with any such institution through the links provided on the site, TransUnion Interactive may be compensated by such institution. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TransUnion Interactive does not include all credit card companies or all available credit card offers.

What You Need to Know:

There are various types of credit scores, and lenders use a variety of different types of credit scores to make lending decisions. The credit score you receive is based on the VantageScore 3.0 model and may not be the credit score model used by your lender.

*Subscription price is $24.95 per month (plus tax where applicable).