Not all credit card APRs are created equal. Here's how to spot a good card rate now that the new year is upon us.

For example, the Prime Rate is currently 6.75%. There’s nothing preventing a card issuer from tweaking a new customer offer from Prime Rate + 13% up to Prime Rate + 13.25% if it wishes to mitigate the impact of a Fed rate cut and make more money from interest charges.

Discover how reference rates like the SOFR and prime rate serve as benchmarks for setting interest rates, and explore their impact on mortgages and financial contracts.

"Mortgage interest rates went down before the Fed cut rates in September but went up after," says Ali Wolf, chief economist at NewHomeSource. "This is because the Fed is cutting the federal funds rate, which is a short-term interest rate. Mortgage interest rates, on the other hand, are influenced by investors and the yield on the 10-year Treasury."

Interest can be charged when you borrow money or earned when you save. When you charge something on a credit card or take out a loan from a financial institution (student loan, auto loan, mortgage, etc.), you’re charged interest for borrowing that money.

Fed rate cuts could ease credit card and deposit rates, but auto loans and mortgages may stay high due to risk and long-term inflation expectations.

Discover what a factor rate is and how to calculate it.

Both federal and private student loans come with interest, which is essentially the cost you pay in return for borrowing money. While student loans can come with other fees, you’ll likely see the biggest impact on your overall repayment costs from ...

One way borrowers can get a lower interest rate is by putting more money down upfront. This strategy, called a mortgage buydown, involves buying mortgage points that lower your rate by a certain percentage either temporarily or for the life of the loan.