What is prime interest rate?

Answer The prime interest rate, or prime lending rate, is what the commercial banks use when lending to creditworthy borrowers, usually large corporations. This rate is a setting for home equity lines of ... Read More »

Top Q&A For: What is prime interest rate

Is credit card interest tied to the prime interest rate?

According to the Federal Reserve, some variable-rate credit cards base their interest rate on the prime interest rate. However, other rates can also be used, such as the Treasury bill rate.Source:F... Read More »

What is the prime mortgage interest rate?

The interest rate on prime mortgages is much lower than the rate on subprime loans. That's because people who qualify for prime mortgages have great credit scores and are less likely to default on ... Read More »

How Does the Key Interest Rate Compare to a Prime Rate?

The key interest rate that controls the prime rate is known as the overnight fed funds rate. This key rate is the interest rate that banks lend and borrow money at between each other. On the other ... Read More »

What Is the Prime Interest Rate on Credit Cards?

Prime interest rate is a term used to describe a common index that many different lenders, such as banks, use to make their decisions. This rate does not affect every decision, but it does cause fa... Read More »