You’ve read the headlines: In the last week, the U.S. prime lending rate was raised from 5.0% to 5.25%. This rate is used by many banks as an index to set their own interest rates for consumer loan products like home equity lines of credit, auto loans, and credit cards. When the prime rate goes up, so do the interest rates on their products.
As a Hanscom Federal Credit Union credit card holder, what does this increase mean for you?
In a word: Nothing.
Hanscom FCU’s consumer credit cards are non-variable rate cards, which means their rates don’t fluctuate every time there’s a change in the prime rate. (By the way, the Federal Reserve is forecasting a total of three hikes in 2018.)
Instead, a proposed rate change would go through Hanscom FCU’s Board of Directors, and members would be given proper notification before an increase would go into effect.
This is a different scenario you’ll find with credit cards from other financial institutions, where rates can change in a day.
So if you’re looking for a credit card with a wallet-friendly interest rate you can depend on, look no further than Hanscom Federal Credit Union’s credit card offerings.
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