Rates checked September 2026
On September 16, the Federal Reserve raised its benchmark rate by a quarter point, to a range of 3.75% to 4% (Federal Reserve). Banks moved the prime rate from 6.75% to 7% the next day (Business Wire).
That doesn't mean every payment you make just went up. Some debts follow the Fed within weeks. Some wait for a reset date. Many don't move at all. Here's how to tell which is which.
Almost every card has a variable APR built as the prime rate plus a margin your issuer sets. When prime rises, your rate rises with it, and the issuer doesn't have to warn you first. The higher rate can apply to the balance you already have (CFPB).
What a quarter point costs: about $1.25 a month on a $6,000 balance. Small on its own. The bigger problem is the rate you're already paying: the average card APR is around 24.95% (Forbes Advisor), which is roughly $1,500 a year on that same balance.
What to do: if you carry a balance, move it somewhere cheaper while you can. A 0% APR balance transfer card buys you time with no interest, and a personal loan locks in a fixed rate future hikes can't touch. Our guide to what to do before your next statement walks through both.
Most home equity lines of credit are variable and tied to prime. At many banks the rate changes on the first statement cycle after prime moves (see Wintrust's terms for a typical example).
What a quarter point costs: during an interest-only draw period, about $8.33 a month on a $40,000 balance. If you're already repaying principal over 15 years, closer to $6.
What to do: ask your lender whether it offers a fixed-rate option. Some banks, like U.S. Bank, let you lock part of your balance at a fixed rate during the draw period. Or pay down the variable balance first. A home equity loan, unlike a line, usually has a fixed rate from day one. Compare HELOC lenders or run the numbers with our home equity loan calculator.
Private student loans come in fixed and variable versions. Variable ones are usually tied to SOFR, a benchmark that moves closely with the Fed's rate, and they adjust on a set schedule.
What a quarter point costs: about $3.35 a month on $25,000 with 10 years left.
What to do: check your loan agreement to see whether your rate is fixed or variable. If it's variable and you have strong credit, compare fixed-rate refinancing offers before the next adjustment.
An ARM has a fixed intro rate, then resets on a schedule. At each reset, your new rate is an index plus a margin set in your loan agreement, subject to any rate caps (CFPB). A Fed hike today only reaches you at your next reset, but every hike between now and then adds up.
What a quarter point costs: about $50 a month at reset on a $320,000 balance with 25 years left.
What to do: find your next reset date on your statement or loan documents. That date is your deadline to compare a fixed-rate refinance if you want to avoid the jump.
Fixed-rate mortgages. Your principal and interest payment never changes. Your total payment can still rise if property taxes or insurance go up, since both are usually collected through escrow. That has nothing to do with the Fed.
Federal student loans. All federal student loans first disbursed on or after July 1, 2006 carry a fixed rate for the life of the loan (Federal Student Aid).
Auto loans and personal loans. Nearly all are fixed. A hike only matters if you're about to borrow: average rates on 3-year personal loans rose to 14.54% in the week ending September 20, up from 14.31% the week before (Credible).
Higher rates aren't all bad news. Yields on high-yield savings accounts tend to rise after a hike, though each bank decides how much of the increase to pass on. On $10,000, a quarter point is worth up to $25 a year. If your savings are sitting in an account paying close to nothing, now is a good time to compare high-yield savings accounts. If you want to lock today's rate, check the math with our CD calculator.
Compare the cards our editors rate highest right now, side by side, with the fees and rewards that matter.
Compare the best credit cardsArticles and reviews from the MoneyAtlas editorial team — independent research on credit cards, banking, loans, insurance, and investing.
Learn how to lower credit card APR with 5 proven strategies. From negotiating with issuers to 0% transfers, discover how to offset rising interest rates.
Does credit card APR go down? Learn how market shifts, improved credit, or negotiation can lower your rate and save you money on interest today.
Wondering what is the difference between American Express Gold and Platinum? Compare annual fees, 4X vs 5X rewards, and luxury travel perks to find your fit.
