How the Interest Rate Hike is Impacting Personal Loan Borrowers

Share This Post

Credello: To combat inflation, the Federal Reserve ("The Fed") has raised its benchmark interest rates to levels not seen since the Great Recession. While these hikes are great for savings accounts and CDs, those considering getting a new personal loan are experiencing sticker shock at the new rates. 

I already have a personal loan, is my interest rate increasing?

It depends on the type of loan you have. 

Most unsecured loans that are already active and fixed-rate will not incur any interest rate changes. This goes for personal loans, consolidation loans, signature loans, etc. However, missing payments or defaulting on a signature loan or other unsecured loan could make you incur new interest rates as a penalty for the duration of the loan or until you're back in good standing. Check your loan's terms and conditions for details on what you should expect if you fall behind on payments.

Secured, fixed-rate loans like mortgages also shouldn't see any change to their interest rates. Again, this is only if you stay in good standing with the lender so it's critical you know the terms you've agreed to for your loan regarding when you could expect a change in your rate.

Variable-rate loans, both secured and unsecured, are loans that have fluctuating rates based on The Fed's benchmark rate. These are the loans that will most likely be affected by the increases made by The Fed. 

How can I tell what type of loan I have?

Knowing the type of loan you have is critical for determining not only how much you'll pay in interest but how your loan is affected by market conditions. The easiest way to determine which type of personal loan you have, or are applying for, is to check the terms. However, there are a few quick ways to determine which loan you have (or could get):

1. Do you have to put any collateral up to get the loan? These are considered secured loans. The most popular types of secured loans are auto loans and mortgages. Unsecured loans don't require any kind of collateral and are often what you'll see for personal loans, signature loans, etc.

However, don't group all unsecured loans together as there are some significant differences between signature loans and personal loans you need to be aware of before applying.

2. Do you only see one interest rate listed? Typically, this means your loan is (or will be) a fixed-rate loan. However, check to see if there are any asterisks or fine print that specifies whether this could change. 

3. Is it a credit card? Credit cards are unsecured, variable-rate ways to borrow money and will be affected by Fed rate hikes. There are some secured credit cards, too, and are also variable-rate. 

A few tips to avoid interest rate increases

1. Look for promotional consolidation offers. Many lenders offer promotional rates that last for a limited time. Consolidating your debt into one loan can lower your interest rate, too.

2. Shop around. Rates can vary significantly from lender to lender, so compare rates before settling on a plan.

3. Make a payment plan. If you're not able to pay off your entire balance each month, making payments on time will help keep your interest rate lower and extend the life of your loan.

4. Pay more than your minimum payment every month. Even an additional $5 payment will help you avoid getting hit with higher rates that take longer to pay off. 

The bottom line

Knowing your personal loan type and interest rate is key in determining how your loan will be affected by The Fed's interest rate hikes. Stay up to date on the terms of your loan to ensure you're not hit with unforeseen penalties or rates.

About Credello

Credello is a financial tech company offering a personal finance tool that simplifies financial decisions through personalized, on-demand recommendations — so users can borrow, save, or invest with confidence. Credello believes that finding the right financial product should be as easy and interactive as online shopping, and we are on a mission to make that possible. For more information, please visit

Contact Information:
Keyonda Goosby
Public Relations Specialist
(201) 633-2125

Original Source: How the Interest Rate Hike is Impacting Personal Loan Borrowers

Related Posts

FTC Finalizes Order Against Motocross and ATV Parts Maker Cycra for False Made in USA Claims

The Federal Trade Commission has finalized its order against...

The Good Dog Foundation to Ring NYSE Closing Bell

Bell ringing will mark the 25th anniversary of the foundation's work

The Good Dog Foundation, a non-profit dedicated to training and deploying therapy dogs to help adults and children recover from stress, trauma, and disease, today announced that Rachel McPherson, Founder, along with two therapy dogs - Magnus and Atticus - will ring the closing bell at the New York Stock Exchange (NYSE) today, Friday, June 2, 2023, at 4:00 p.m. ET.

"At The Good Dog Foundation, we believe in the healing power of the human-animal bond. Therapy dogs, when trained properly, offer uniquely effective nonverbal, nonjudgmental support for those in need of stress relief, morale boosting, or emotional healing," said Rachel McPherson, Founder of The Good Dog Foundation. "Ringing the closing bell at NYSE is a wonderful way to honor our 25th year and reflect on the meaningful work our therapy dogs have done. I am so proud of The Good Dog Foundation and the thousands of therapy dogs and their owners who are making a difference in lives every day."

About The Good Dog Foundation

For 25 years, The Good Dog Foundation has trained and deployed thousands of therapy dogs to help adults and children recover from stress, trauma and disease or cope with disabilities and learning issues. Founded on the belief in the healing power of the dog to human connection, Good Dogs have provided services to hospitals, colleges, nursing homes, disaster relief efforts as well as corporate partners. Learn more at

Contact Information:
Bruce Fagin
Executive Vice President, The Good Dog Foundation
(888) 859-9992

Original Source: The Good Dog Foundation to Ring NYSE Closing Bell

Hard Asset Management Puts a Strong Buy on All Varieties of $4 US Rare Coin Stella Patterns

Hard Asset Management Highlights Stellar Growth in Gold Stella Coin Market as Investment Potential Surges SAN JUAN, Puert...

FTC, DOJ Issue Summary on Joint Pharmaceutical Merger Analysis Workshop

The Federal Trade Commission and the U.S. Department of...

The 2023 Global Healing Festival by Embodied Black Girl Returns, Disrupting Grind Culture and Centering Rest

The free one-day festival featuring today's visionary thought leaders will take place online on June 9, 2023

The Global Healing Festival by Embodied Black Girl returns for its fourth annual festival on June 9, 2023. The festival is the first of its kind and nourishes the healing and liberation of Black women and women of color while enlivening culture change and making wellness, somatics and mental health more accessible to the communities that need it most. 

Every year the free grassroots virtual festival attracts thousands of participants around the world, primarily through word of mouth.  

Curated by the global wellness and leadership education platform, Embodied Black Girl, the day-long online, interactive and immersive festival experience, includes in-depth workshops and thought-provoking conversations with today's leading visionary cultural shapers.

This year's theme, The Future is Embodied: The Rest-volution, is an invitation to enter the dream space and leave grind culture behind. In spite of the grim statistics and policies that impact Black women in particular, we root for a vision of joy, hope and self-determination.

In keeping this festival free through the years, our hope is to make wellness, somatics and mental health more accessible to Black women and folks of color and, in turn, create a world where we are seen, held and empowered. In this space, rest is life and our bodies transform into revolutionary portals and oracles for liberation. 

The festival will be hosted by Embodied Black Girl founder Thérèse Cator, who'll be joined by honored guests: 

  • Tricia Hersey, founder of The Nap Ministry and NYT Bestselling Author of Rest is Resistance 
  • Dr. Jennifer Mullan, founder of Decolonizing Therapy and author of the forthcoming book Decolonizing Therapy: Oppression, Historical Trauma and Politicizing Your Practice (W. W. Norton & Company)
  • Tigidankay "TK" Saccoh, founder of The Darkest Hue, a digital platform that centers the experiences and perspectives of dark-skinned Black girls, women, and femmes 
  • Natalee Facey, Resilience Coach and Birth Doula 

The festival will explore questions like…

  • How does rest support our individual and collective liberation?
  • How can we move beyond a cognitive understanding of rest to an embodied knowing of rest?
  • How can we foster deeper embodiment while having difficult and necessary conversations within our family and communities?
  • What dreams are we here to birth and nurture that will support personal and communal thriving?

For more information and to register to attend, please visit

Contact Information:
EBG Press

Original Source: The 2023 Global Healing Festival by Embodied Black Girl Returns, Disrupting Grind Culture and Centering Rest
green agriculture project
- Part of VUGA Media group -best seo company