Tuesday, March 28, 2006

Fed Raises Interest Rates Again

The Federal Reserve jacked up interest rates again today, which means higher interest on many loans that rise and fall with the Prime Rate.

I'm a little cloudy on the federal funds rate versus the prime rate versus the who-do-we-apprecirate, but I can tell you that if you have a credit card with a balance on it, there's a good chance your interest rate will rise another quarter-point soon, from 13.49% to 13.74%, for example. Most credit cards are variable rate, going up and down based on what Alan Greenspan, oops, Ben Bernanke decides at these Fed meetings.

Some cards are lightning-quick to increase rates when this happens, some are slower--but almost all of them do it, unless you're lucky enough to have a fixed rate credit card--so you'll see it soon enough.


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