Higher interest rates will increase your payments - Hawaii News Now - KGMB and KHNL

Higher interest rates will increase your payments

Now that the Federal Reserve has increased interest rates, expect your credit cards to get more expensive. (Source: CNN) Now that the Federal Reserve has increased interest rates, expect your credit cards to get more expensive. (Source: CNN)

(CNN) - Higher rates have come back to America.

The Federal Reserve has raised its key interest rate by a quarter of a percentage point.

It's just the third time rates have gone up since the financial crisis, and more hikes may come this year.

Here's what the rate increase means for your wallet.

If you have a credit card, savings account or invest in stocks or bonds, or you want to buy a house or a car, you should probably pay attention.

Your credit cards will get more expensive. Credit card companies typically mirror the fed. So chances are the interest rate you pay could rise soon.

If you can, pay off your balances fast or transfer your balance to a zero-interest card to give you a little more time.

Car loan companies tend to do the same thing as credit card companies.

Expect to see similar increases on that car loan rate.

Likewise, if you're shopping for a new mortgage, expect increases even though the fed doesn't directly set mortgage rates.

Don't expect to see your savings account fatten.

To start seeing more interest on your money, the fed will have to raise rates higher, which it may do at least two more times this year.

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