Federal Funds Rate Increase

The Federal Reserve (Fed) sets the federal funds rate, which is the interest rate that banks charge each other for overnight loans. This rate is used as a benchmark for other interest rates, including the prime rate. The prime rate is the interest rate that banks charge their most creditworthy customers, such as businesses and individuals with excellent credit.

Credit card interest rates are typically tied to the prime rate. This means that when the Fed raises the federal funds rate, the prime rate also goes up. And when the prime rate goes up, credit card interest rates typically follow.

For example, if the Fed raises the federal funds rate by 0.25%, the prime rate will also go up by 0.25%. This means that if your credit card has a variable APR, the interest rate on your balance will also go up by 0.25%.

The Fed has been raising interest rates in an effort to combat inflation. This means that credit card interest rates are likely to continue to go up in the near future. If you have a balance on your credit card, this could mean that you will pay more interest on your debt.

Here are some things you can do to minimize the impact of rising interest rates on your credit card debt:

  • Pay off your balance as quickly as possible.
  • Consider a balance transfer card with a 0% APR introductory period.
  • Ask your credit card issuer to lower your interest rate.
  • Make sure you are making at least the minimum monthly payment.
  • By taking these steps, you can help to protect yourself from the financial impact of rising interest rates.

Here are some additional things to keep in mind:

  • Not all credit cards have variable APRs. Some cards have fixed APRs, which means that the interest rate will not change over time.
  • The Fed does not directly control credit card interest rates. However, the federal funds rate is a major factor that influences these rates.
  • The impact of rising interest rates on credit card debt will vary depending on the amount of debt you have, your credit score, and other factors.

The latest Fed interest rate is 5.25% – 5.5%. The Federal Reserve raised the target range for the federal funds rate by 0.25 percentage point in its July 2023 meeting, in line with market expectations. This is the highest level the federal funds rate has been since January 2001.

The Fed is expected to continue raising interest rates in an effort to combat inflation. The next meeting of the Federal Open Market Committee is scheduled for September 2023. It is expected that the Fed will raise interest rates by another 0.25 percentage point at this meeting.

The impact of rising interest rates on the economy is uncertain. Some economists believe that the Fed is raising interest rates too quickly and that this could lead to a recession. Others believe that the Fed is raising interest rates at a pace that is appropriate to control inflation.

Only time will tell what the ultimate impact of rising interest rates will be on the economy. However, it is clear that these rates will have a significant impact on the cost of borrowing money, which could lead to higher mortgage rates, car loan rates, and credit card interest rates.



What is The Credit Repair Organizations Act (CROA)?

About the Credit Repair Organizations Act

The Credit Repair Organizations Act (CROA) is a federal law that was enacted in the United States to regulate the activities of credit repair companies and protect consumers from deceptive and unfair practices in the credit repair industry. It was passed in 1996 and is part of the Consumer Credit Protection Act.

What is the Main Objective?

The main objective of the Credit Repair Organizations Act is to ensure that consumers have the necessary information and rights when dealing with credit repair companies. Here are some key provisions of the CROA:

Disclosure Requirements

Credit repair organizations must provide consumers with a written contract that outlines their services, the terms and conditions of the contract, the duration of the services, and the total cost. They must also inform consumers of their right to cancel the contract within three business days without any penalty.

Prohibited Practices

The CROA prohibits credit repair companies from making false or misleading statements about their ability to improve a consumer’s credit score or remove accurate negative information from their credit reports. They are also not allowed to advise consumers to create new identities or engage in illegal activities to improve their credit history.

Fee Restrictions

Credit repair organizations cannot charge fees upfront before rendering any services. They can only receive payment for services after they have been completed. Additionally, they cannot charge fees for services that have not been agreed upon in the written contract.

Right to Cancel

Consumers have the right to cancel their contract with a credit repair organization at any time without penalty. The credit repair company must inform consumers of this right in the written contract.

Prohibited Guarantees

Credit repair organizations are not allowed to guarantee specific results, such as a certain increase in a consumer’s credit score.


Credit repair companies must maintain records of their business activities, contracts, and communications with consumers for two years after the last activity with a particular consumer.

Who is Responsible for Enforcing the Credit Repair Organizations Act?

The Federal Trade Commission (FTC) is responsible for enforcing the Credit Repair Organizations Act. If a credit repair company violates the CROA, consumers have the right to sue the company for damages, and state attorneys general and the FTC can take legal action against non-compliant credit repair organizations.

It’s important for consumers to be cautious when dealing with credit repair companies and to be aware of their rights under the Credit Repair Organizations Act. If you’re considering using the services of a credit repair organization, make sure to do your research and verify the company’s reputation and compliance with the law.

We are in compliance with the law

Schedule a Credit Repair Consultation

The Fed’s Rate Increase Affects Your Credit Card Debt

The Federal Funds Rate Has Increased

The Federal Reserve (the Fed) has increased the federal fund rate by 25 basis points this week.

It’s worth noting that the Fed’s decisions on interest rates are based on a variety of economic indicators, such as inflation, employment, and GDP growth. These indicators help the Fed assess the overall health of the economy and determine whether to raise or lower interest rates.

How Does the Fed’s Rate Affect my Credit Card Debt?

The federal funds rate has an important influence on many other interest rates, such as those for consumer loans, mortgages, and credit cards.

Changes in the Federal Reserve’s federal funds rate can have an impact on credit card debt, particularly in terms of the cost of carrying a balance on a credit card.

Most credit cards have variable interest rates that are tied to the prime rate, which is the interest rate that banks charge their most creditworthy customers. The prime rate, in turn, is influenced by changes in the federal funds rate.

When the Federal Reserve raises interest rates, the prime rate tends to increase as well, which can result in higher credit card interest rates. This means that consumers who carry a balance on their credit cards will face higher interest charges, making it more expensive for them to repay their debt.


Credit Repair Services

Credit Repair

What is Credit Repair?

Credit repair refers to the process of improving or repairing a person’s creditworthiness and credit score. When someone has a poor credit history or a low credit score, it can make it challenging to obtain loans, credit cards, or favorable interest rates. Credit repair aims to address negative or inaccurate information on a credit report and take steps to improve creditworthiness.

Steps to Repair Your Credit:

Here are some steps you can take to repair your credit:

Obtain a copy of your credit report:

Start by requesting a copy of your credit report from each of the three major credit bureaus: Equifax, Experian, and TransUnion. You can get a free copy once a year from each bureau through AnnualCreditReport.com.

Review your credit report:

Carefully review your credit report for any errors, such as incorrect personal information, accounts you don’t recognize, or outdated negative information. If you find any discrepancies, you have the right to dispute them with the credit bureaus.

Dispute errors:

If you find errors on your credit report, file a dispute with the credit bureaus by providing documentation and explaining the inaccuracies. The bureaus are required to investigate your dispute within a certain timeframe.

Pay bills on time:

One of the most important factors in improving your credit score is making timely payments on your bills. Paying your bills on time helps establish a positive payment history and demonstrates responsible financial behavior.

Reduce credit card balances:

High credit card balances can negatively impact your credit utilization ratio, which is the amount of credit you’re using compared to your available credit. Aim to keep your credit card balances below 30% of your credit limit.

Avoid new credit applications:

Multiple credit applications within a short period can lower your credit score. Limit your applications for new credit and only apply for credit when necessary.

Establish positive credit history:

If you have limited or no credit history, consider opening a secured credit card or becoming an authorized user on someone else’s credit card. Responsible use of credit can help build a positive credit history over time.

Consider credit repair counseling:

If you’re struggling with managing your debts or need assistance creating a repayment plan, credit counseling agencies can provide guidance and support. They can help you develop a budget, negotiate with creditors, and educate you on good financial practices.

Does Credit Repair Take Time?

Remember that credit repair takes time, and there are no quick fixes. It’s important to be patient and consistent with your efforts to improve your credit.


CALL TO SCHEDULE Your Initial Credit Repair Consultation