The Fed's decision to cut the federal funds target rate Federal funds target rate The federal funds target rate is the short-term interest rate that banks charge other banks to borrow money overnight from the Federal Reserve System. The actual rate, or effective rate, changes daily and may be above or below the targeted rate. The FOMC sets the rate at its regularly scheduled meetings but may opt to change it between meetings should economic conditions warrant a change. by another 25 basis points may be a great thing for people shopping for fixed-rate mortgages. |
When the Federal Reserve meets and changes rates we all have questions: What does it mean to me? Will my mortgage rate go up or down? Is this a good time to refinance? Bankrate is here to help. We've looked at five categories -- mortgages, home equity loans, auto loans, credit cards and certificates of deposit -- to determine if the Fed's moves made you a winner or a loser. Here's a look at mortgages: |
My son is in college and has incurred more than $20,000 in credit card debt with various cards. He has no income and no way to pay them off. He doesn't have any student loans. Can you get student loans to pay off credit card debt? And if so, would he be required to have a co-signer? He wants to avoid bankruptcy. Are there any other options? |
This week, I've decided to break format a bit and answer several questions related to credit card debt. The average American carries thousands of dollars in this type of debt. Although the details differ from case to case, all of the scenarios outlined by this week's questions underscore a basic truth: Carrying extra debt is like carrying too much weight. My advice is to lose it. |
Considering a gift card purchase over the holidays? Buy directly from a retailer if you want to save on fees. Bankrate's third annual gift card survey reveals that gift cards purchased directly from retailers carry no fees, while cards from the big four credit card issuers and major shopping mall operators come with fees and expiration dates. Bankrate surveyed American Express, Discover, MasterCard and Visa, along with top nationwide retailers and the six largest shopping mall operators on their plastic gift cards and electronic cards. Of the 31 issuers of gift cards surveyed, only 12 offer both plastic and electronic cards. |
Gift cards are booming -- on the buyer and seller sides of the market. According to Comdata, in the 2007 holiday season, the average gift card buyer will spend $203 on cards, a $23 increase from 2006. And the National Retail Federation's 2007 Holiday Consumer Survey found that 54 percent of consumers said they want to receive a gift card as a holiday gift. With consumers purchasing more gift cards than ever before, it's no surprise that the variety of companies and organizations that are utilizing them is growing just as fast. |
Imagine if someone suddenly took away all of your plastic. Credit cards are so much more convenient and safer than carrying cash, it's hard to imagine life without them. As the credit card industry has evolved, new products and features make using credit cards even more appealing -- if you know how to play the game. |
The world of credit cards is getting more complicated, if that's possible. More and more retail stores are teaming up with American Express, MasterCard or Visa to issue credit cards that carry the name of the store and the logo of the card issuer. But they also still offer cards that can be used only in their own stores. How does a consumer choose? Known as private-label credit cards, the one-store-only cards have introduced reward programs that pay cardholders to use their cards again and again. |
Americans are perhaps the most charitable group of people on Earth. In 2006, U.S. charitable giving hit $295.02 billion, according to a report by Giving USA Foundation. (OK, that total included the $1.9 billion Warren Buffett gave as part of his 20-year commitment to various charities.) Many credit cards now have the option of donating reward points to a charity of choice. And with the gift card growing to be a most popular gift to give, it figures that charitable giving and gift cards would meet and marry. |
Bankrate surveyed the "big four" credit card issuers (American Express, Discover, MasterCard and Visa), the top retailers nationwide and the largest shopping mall operators about their gift card programs. Click on a tab to see details for each. The Bankrate research was conducted by Heather Kuhn. |
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