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MOST BORROWERS TO GET BREAK

How does the rate cut affect credit cards and car loans?

Rates have been coming down on many cards, thanks to the Fed's previous cuts. You may see further declines, which makes this a good time to shop for a loan. If your card issuer has not lowered rates, try calling and asking for a lower rate.

How will mortgage rates be affected?

You've caught a break if you've got an adjustable-rate mortgage that's due to reset. Your payments won't go up as much as they would have otherwise. Rates on home-equity credit lines also will fall. The impact on new fixed-rate mortgages is uncertain since those rates are tied to longer-term bonds.

What does this mean for savers?

You'll be earning less income if you have money market accounts and CDs. Yields on long-term bonds actually ticked up a notch Wednesday, a sign that investors are worried about inflation. It pays to shop around for the best rates.

Will lower rates help the economy?

Yes, if they get consumers and businesses to spend more money. However, tighter lending standards mean many would-be borrowers won't qualify.

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