It's been nearly a decade since we saw increases in interest rates, but after the Fed's interest rate hike in December, consumers can expect to see more like it in 2016. In fact, we could see as many as 4 additional rate hikes this year.
So what does this mean for you and your credit cards?
You can expect to see credit card interest rates move directly in line with each interest rate increase the Fed authorizes this year. If you carry a balance on your credit cards, this will result in higher payments and a greater cost of carrying debt. Of course, if you are using your credit cards wisely and paying your balance in full each and every month, higher interest rates will have no effect on your monthly payments.
In addition, there's a strong possibility that consumers will see fewer 0% interest credit card offers as the year progresses. So if you have a 0% interest card offer in mind that you've been thinking about pulling the trigger on, now may be the right time to finally snatch it up before the credit card issuer does first.
Source: CNN Money
