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Quarter-point interest rate calculator

Summary

How a quarter-point increase in interest rates raises the cost of carrying a given credit card balance

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When the Federal Reserve raises its benchmark federal funds rate, banks follow suit by raising their prime rates.

If you carry a balance on a variable rate credit card, your interest cost will go up as a result.

To see how much a quarter-point increase in rates will cost, find your card balance, to within $100, using the slider bar on the chart below (up to $10,000.)

Then select the colored bar representing your balance to display the added interest costs on a monthly and annual basis.

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