what is the impact of the prime rate 
the prime rate affects a variety of bank loans when the prime rate goes up so does the cost to obtain small business loans lines of credit car loans mortgages and credit cards 4debt with a variable interest rate can be affected by the prime rate because a bank can change your rate this includes credit cards as well as variable rate mortgages home equity loans personal loans and variable interest rate student loans the prime rate is reserved for only the most qualified customers those who pose the least amount of default risk if the prime rate is set at 5 a lender still may offer rates below 5 to well qualified customers the prime rate in canada was 6 95 and 1 48 in japan as of january 2024 1