Credit card interest rates creeping higher

By  | 

RAPID CITY S.D. (KOTA-TV) - The Federal Reserve increased interest rates last week which you could feel in your wallet.

The first place you are likely to notice a change is with your credit card.
But if you plan on getting a new home, motorcycle, or car then you will see a quarter percent increase.

That means if you have a 30-year home loan, you will now be paying tens of thousands of dollars more than before.

Consumer Credit Community Outreach Manager, Terry Mills, explains how the Federal Reserve raising their interest rates trickles down to you.
"When the federal reserve raises the interest rates, that's what banks borrow money from the Federal Reserve. So when that interest rate goes up that they charge the banks and credit unions, then that money obviously gets past down to consumers car loans, home loans, and credit cards," Mills stated.

Interest rates have been at historic lows for the past 10 years so a quarter percent increase isn’t too much to worry about.