when it comes to consumer loans and other debt e g mortgages car loans or credit cards banks and financial institutions charge a spread over this benchmark rate with the spread depending on several factors such as the type of asset and the consumer s credit rating thus a floating rate might define itself as the libor plus 300 basis points or plus 3 
all sorts of loans and debt instruments carry floating interest rates but they tend to be especially common with credit cards and mortgages floating interest rates may be adjusted quarterly semiannually or annually 