Personal Loan Rates Rise With Fed Hikes, But Competitive Offers Remain, CNBC Select Reports

The Federal Reserve has raised its benchmark interest rate as part of an ongoing effort to curb inflation, a move that is pushing up borrowing costs across various types of consumer credit, including personal loans, according to CNBC Select.

In a report published on its website, CNBC Select noted that while the central bank's rate increases generally translate into higher interest rates for loans, some lenders continue to offer competitive annual percentage rates (APRs) on personal loans for qualified borrowers.

The Fed's benchmark rate serves as a reference point that influences the cost of borrowing throughout the economy. When the Fed raises this rate, banks and other lenders often increase the interest rates they charge on products such as credit cards, mortgages, and personal loans, according to the report.

Despite the broader trend of rising rates, CNBC Select said certain personal loan providers still offer favorable terms depending on factors such as a borrower's credit score, income, and overall financial profile. The publication highlighted several lenders it says can help consumers secure more affordable APRs even in a rising-rate environment.

Personal loans are typically unsecured loans that borrowers can use for a variety of purposes, including debt consolidation, home improvements, or unexpected expenses. Rates on these loans can vary significantly between lenders, making comparison shopping an important step for consumers seeking the best available terms, the report noted.

CNBC Select's analysis comes as the Federal Reserve has pursued a policy of interest rate increases in recent periods aimed at addressing inflationary pressures in the broader economy.