How the Prime Rate Increase Affects Your Hanscom FCU Credit Card


You've read the headlines that the Federal Reserve has increased the federal funds rate, which is the borrowing rate for lending institutions. The Fed anticipates a total of seven rate increases in 2022 to help curb inflation rates.

When the federal funds rate increases or decreases, the nation's prime rate, which is about 3 percent higher than the federal funds rate, follows suit.

Consumer interest rates are based on the prime rate, so if interest rates go up, you'll be paying more for credit, such as home equity loans and home equity lines of credit (HELOCs), personal loans, and credit cards with variable interest rates.

As a Hanscom Federal Credit Union credit card holder, what does this increase mean for you?

Hanscom FCU's Platinum Mastercard® is a non-variable rate card, which means its rate doesn't fluctuate every time there’s a change in the prime rate. A proposed rate change would have to go through Hanscom FCU’s Board of Directors; members would be given proper notification before an increase was put into effect.

However, Hanscom FCU's CASH + REWARDS World Mastercard has a variable rate based on the prime rate, so when the prime rate changes, so does the interest rate on this card. This is an attractive card for members who typically pay their balances in full each month; they reap rewards while avoiding paying interest.

Even as interest rates rise, if you’re looking for a credit card with a wallet-friendly interest rate, look no further than a credit card with Hanscom Federal Credit Union.


Learn more about  Hanscom FCU credit cards


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About Author

Diana Burrell
Diana Burrell

Diana Burrell is the marketing communications director at Hanscom FCU. She has a background in magazine journalism, as well as marketing, advertising, and public relations, and has authored over a dozen books. You can reach her at

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