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A big question in consumers minds is how this rate cut affects the ability to get credit.
Read on to find out how this rate cut could impactyour ability to get credit.
Thus, credit becomes more affordable forconsumers and businesses.
A lower interest rate stimulates borrowing and consumer spending because consumers find it cheaper to finance purchases.
It also allows businesses to invest in growth opportunities, he added.
This can marginally lower the cost of carrying a balance on credit cards.
Barrington explained that the Fed and credit card companies have different goals.
He said, The Fed is trying to influence consumer behavior.
Credit card companies are trying to figure out how best to profit from that behavior.
An important thing for consumers to remember is that credit card companies dont all act in unison.
So, times when rates are changing are good times to shop for a better deal oncredit card rates.
Lower interest rates encourage consumers and business entities to take more credit and stimulate economic activity.
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