 TITLE: What Is the Prime Rate? CONTENT: The prime rate was 3.25% at the time this article was published, according to the Federal Reserve.\nWhen you apply for a credit card or loan, the card issuer or lender will decide the interest rate you pay based on your creditworthiness, the prime rate and other factors. If you have good credit and meet the minimum qualification criteria, you're more likely to qualify for a low interest rate. The best interest rates available are reserved for the most creditworthy applicants with excellent credit scores.\nYou typically won't receive an interest rate that exactly matches the prime rate when applying for a credit card or fixed-rate loan product, though. Lenders use this percentage as a baseline, which means it significantly impacts the APR or interest rate you'll ultimately receive. END