With interest rates declining, borrowing costs for credit cards, personal loans, and auto financing should get a bit cheaper, saving a few bucks on most loans.

The Fed just cut interest rates by another 25 basis points—here’s what will get cheaper

With interest rates declining, borrowing costs for credit cards, personal loans, and auto financing should get a bit cheaper, saving a few bucks on most loans.

The Fed began cutting rates in September to help boost the economy as inflation cools and the job market softens. Before that, it spent two years raising rates to curb inflation, which peaked at 9.1% in June 2022. Since then, inflation has fallen to 2.4%, bringing it much closer to the Fed's 2% target.

In a September speech, Fed Chair Jerome Powell indicated that another 25-bps cut could happen before 2025 if current economic trends hold steady.

The Fed expects the benchmark rate to dip to 3.4% by the end of 2025, which would further increase savings on borrowing costs.

Below is a breakdown of how the recent rate cuts could impact your monthly borrowing costs. The breakdown includes today's 25-bps cut and the cumulative 75-bps reduction since the Fed began cutting rates in September, as estimated by Bankrate.