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Fed Raises Interest Rates, Prime Rate to Follow

For the 13th consecutive meeting, the Federal Reserve today raised the Fed Funds rate 1/4%. This will translate into an increase in the prime rate to 7.25%, almost double the 4% rate when these increases started.

If you have a variable rate credit card, you've likely noticed your interest rates ticking up, as most of these are tied to the prime rate. With holiday spending underway, those who carry a balance this year may end up paying much more in finance charges than last year.

One way around this is to find a card that offers 0% on balance transfers for 6 months or a year. You could save hundreds of dollars in finance charges. To see how much you can save, use our Credit Card Balance Transfer Calculator.