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The borrowing landscape could get a lot more friendly over the coming months. Getty Images
With inflation finally waning and the employment landscape shifting, the Federal Reserve finally opted for a cut to its federal funds rate this month. According to forecasts, there could be more to come, too.
While this is bad news for savers (rates on savings accounts and certificates of deposit will certainly decline), it’s great news if you need to borrow money. After all, a few different types of loans will likely become cheaper as the Fed continues to cut rates over time. Here’s what you can expect.
Need to borrow money at an affordable rate now? Compare your best personal loan options here.
These loans will become cheaper as the Fed cuts rates
These loans could get more affordable as the Fed makes its moves this fall.
Personal loans
Interest rates on all borrowing products will drop as the Fed lowers rates, including personal loans. Because personal loans tend to have fixed rates, it will largely be new personal loans that are more affected, though.
If you have a personal loan with an adjustable rate — which is less common, but still possible — then you’ll see a lower rate and payment shortly after a rate cut goes through.
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