Interest rates charged for variable-rate loans and on credit card balances are sometimes tied to an index. The most common indexes used are the bank prime lending rate, the U.S. Treasury bill rates, and the Federal Funds Rate or the Federal Reserve Discount Rate. Usually lenders choose an index to reflect the cost they pay for the funds they loan to their customers. With a variable interest rate, the customer shares the interest rate risk with the lender. In other words, if the consumer's index rate goes up, the lender can raise the rate by the same percentage.
Many sources of information are available on credit options.
Your local newspaper has information on credit rates in your area. Also, nationally circulated newspapers frequently make financial information a highlighted feature. There are also many personal finance publications and newsletters, such as Kiplinger's Personal Finance Magazine , that provide professional insight and recommendations on various credit issues. Consumers can also find a wealth of financial information on the Internet. Many editions of local newspapers are also available online and contain valuable information on local economic news.