Pending rate hike “doesn’t mean too much” for credit cards, more risky for mortgages
North Salt Lake City, UT – September 16, 2015 – There is mounting speculation that despite turbulent markets, The Fed will move forward with the first interest rate increase since June 29, 2006. John Heath, Directing Attorney for Lexington Law, a consumer advocacy law firm and trusted leader in credit report repair, points to a strong economy and steady job growth, with a potential rate hike of 0.25% having little impact on consumers.
The Labor Department reported that U.S. employment rose by 215,000 jobs in July and the unemployment rate held steady at 5.3 percent. The report was forecast to show employers adding 223,000 jobs last month and the unemployment rate was expected to remain at 5.3 percent, said analysts polled by Thomson Reuters, according to the International Business Times.
“The United States economy is good, job growth continues, but world markets aren’t so strong right now – which may cause the Fed to delay an imminent hike,” said John Heath. “While an interest rate hike of a quarter percent, which changes to about 21 cents per $1,000 dollars borrowed on a credit card per month, is just not a dramatic increase, consumers should take note and prepare for inevitable upcoming hikes.”
Credit card rates are only marginally impacted by these incremental changes, but a Federal interest rate increase can make a significant difference with mortgage rates, where larger sums of money are borrowed and paid over extended amounts of time. Heath recommends that consumers “take a hard look” at their credit scores now in order to prepare for any future rate hikes, which may upset personal finances and budgets.
“Improving your credit score can actually level off any rate hikes while maximizing your buying power,” said Heath. “Higher credit scores may qualify for loans with lower rates, which could ultimately offset the interest increase. Now may be a good time for consumers to begin a course of credit repair to address unfair, inaccurate and unsubstantiated items that may be depressing their credit scores.”
The Federal Open Market Committee will hold a two-day meeting this month, followed by a September 17th news conference by the Fed chairwoman, Janet L. Yellen, during which a rate hike, or hold, is expected to be announced.
About Lexington Law
Lexington Law Firm is a consumer advocacy law firm that, for many years, has focused its practice in the area of consumer credit report repair to help hundreds of thousands of Americans work to improve their credit.
The firm is comprised of dedicated attorneys and paralegals who deliver professional services to its clients on a daily basis. By leveraging consumer rights to resolve issues with creditors, data furnishers, and credit
bureaus, Lexington Law Firm works to ensure that client credit reports are fair, accurate, and substantiated. For details about Lexington Law Firm’s services or attorneys, please visit www.LexingtonLaw.com.