The Fed just cut rates by 0.25%. Here's what it means for your wallet today: If you're carrying $6,000 in credit card debt at the national average of 20.12% APR, you're currently paying $100.02* per month just in interest charges. After today's Fed cut — even if your card company passes along the full 0.25% reduction (dropping your APR to 19.9%) — that only reduces your monthly interest rate charges to $98.92*. Your savings? About $1 per month*, and only after waiting 60 to 90 days for the change to take effect. *Calculations done with NerdWallet’s calculator.
While the news celebrates "lower rates," the average homeowner, holding roughly $195,000 in tappable equity, is already sitting on a powerful financial tool to take control of their debt — their home equity.
What just happened to interest rates?
The Federal Reserve lowered its benchmark interest rate for the first time in 2025. This cut of 0.25 percentage points puts the prime interest rate at a range of 4.00% to 4.25%.
However, the reality is your monthly payments won't drop tomorrow. That's assuming your card issuer passes along the full cut, which isn’t a certainty and doesn't happen immediately.
Accessing your home equity through a HELOC6: Navigates to numbered disclaimer can be done at an APR typically 8% to 12% lower than credit cards4: Navigates to numbered disclaimer. While some wait for uncertain credit card relief, homeowners who recognize the advantage the current rate environment offers are taking action now4: Navigates to numbered disclaimer. Figure's HELOC puts that accessible equity to work immediately.
When you'll feel the impact of rate cuts
Understanding when rate changes hit your wallet is crucial for making smart financial decisions. Here's the realistic timeline:
Credit cards: Up to two billing cycles (60 to 90 days)
Credit card companies aren't required to lower rates immediately, and they don't always pass along the full Fed cut. For example, when the Fed cut rates by 0.50% in September 2024, the average credit card interest rate fell by just 0.13%. Your monthly statement won't reflect changes for at least one billing cycle, and many cardholders see rates edge lower gradually.
HELOCs: Immediate to 30 days
Figure's HELOC rates adjust immediately when the Fed makes moves, and we offer both fixed and variable rate options1: Navigates to numbered disclaimer 8: Navigates to numbered disclaimer. Variable-rate HELOCs8: Navigates to numbered disclaimer typically adjust more quickly because they're directly tied to the prime rate. However, Figure's fixed-rate HELOC1: Navigates to numbered disclaimer structure means your rate stays predictable regardless of Fed moves — you lock in competitive rates from day one.
Mortgages: Minimal immediate impact
Mortgage rates aren't tied directly to Fed moves, but rather to the 10-year US Treasury note. Today's 0.25% cut is unlikely to meaningfully impact mortgage rates. This matters for homeowners because even if you're considering moving to get a lower rate, that opportunity might not materialize soon. Consider using a HELOC to pay down high-interest debt, which may improve your debt-to-income ratio (if the line of credit is equal to or lower than your current debt) for when you are ready to make a move.
The key insight? If you're waiting for credit card relief, you're looking at months of delay for minimal savings. But tapping your home equity may provide immediate access to dramatically lower rates4: Navigates to numbered disclaimer.
The timeline truth for debt relief
Credit cards: 60 to 90 days for minimal reduction
HELOCs: Figure's HELOC adjusts immediately to 30 days for rate adjustment
Here's the insider tip: The gap between HELOC and credit card APRs is wide enough that waiting on Fed cuts can feel like holding out for a small discount while passing up a much bigger one already available.
Today's best options for debt relief
With approximately 46.2% of homeowners having accessible equity and the average homeowner holding $195,000 in tappable equity, most homeowners have significant borrowing power at rates far below credit cards. Here's why tapping your home equity via a Figure HELOC makes sense:
Speed: Funding in as few as five business days2: Navigates to numbered disclaimer versus waiting months for minimal credit card rate reductions
Rate advantage: HELOCs typically run 8% to 12% lower than credit cards4: Navigates to numbered disclaimer, regardless of Fed decisions
Fixed and variable options1: Navigates to numbered disclaimer 8: Navigates to numbered disclaimer: Choose the rate structure that fits your needs
Full access: Get your full loan amount upfront, then redraw as you pay down the balance1: Navigates to numbered disclaimer 8: Navigates to numbered disclaimer
"Our Figure HELOC allowed us to pay off our car, eight years of doctor bills, and a high-interest credit card. That allowed us to reduce well over $1,000 in monthly debt to a $200 payment." — David, 53, Missouri
Alternative strategies
Balance transfer cards with 0% introductory rates can provide temporary relief, but these offers typically last six to 18 months and require excellent credit. Personal loans average around 12% APR — better than credit cards but still typically higher than home equity options.
Your next steps
You don’t have to join the crowd waiting months for minimal credit card relief. While others hope for 0.25% savings "someday," homeowners can access equity at dramatically lower rates now4: Navigates to numbered disclaimer.
Check your home equity
Use Figure's calculator to estimate your available equity. With roughly 48.5 million mortgage holders having accessible equity, there's a good chance you have more borrowing power than you realize.
Calculate your potential savings
Compare your current monthly debt payments against what you'd pay with a home equity solution. The difference between credit card rates and HELOC rates can mean potentially freeing up hundreds of dollars monthly — starting in as few as five days, not months from today.
Get prequalified
Figure's online application takes just minutes and checking your rate won't impact your credit score3: Navigates to numbered disclaimer. This gives you real numbers to work with rather than estimates, and there's no obligation to proceed.
Frequently asked questions about today's Fed decision
Q: How long before I see lower credit card rates?
A: Credit card rates typically take 1-2 billing cycles (60-90 days) to adjust, and issuers don't always pass along the full Fed cut. Historical data shows when the Fed cut 0.50% in 2024, credit card rates only dropped 0.13%.
Q: Should I wait for credit card rates to drop or get a HELOC now?
A: The math is clear: waiting up to 90 days for a potential 0.25% credit card rate drop costs you more in continued interest than the potentially 8% to 12% lower APR advantage of consolidating debt with a HELOC4: Navigates to numbered disclaimer.
Q: What does a 0.25% Fed cut actually mean for homeowners?
A: For homeowners with equity, it means HELOC rates may drop slightly in 30 days, but the real opportunity is the existing rate advantage over credit cards, as of September 2025, that makes immediate action more valuable than waiting4: Navigates to numbered disclaimer.
Q: Will mortgage rates drop after today's Fed decision?
A: Mortgage rates are tied to 10-year Treasury yields, not Fed rates directly. Today's 0.25% cut is unlikely to meaningfully impact mortgage rates, especially given the minimal impact typical rate cuts provide.
Q: Should I consider a cash-out refinance instead?
A: With 82.8% of homeowners holding mortgages below 6% and current refinance rates at 6.06%, most homeowners would dramatically increase their housing costs. A Figure HELOC preserves your low existing rate while accessing equity at competitive terms.
Ready to explore your options? While others wait for uncertain credit card relief, check your rate in minutes and see how your home equity can work harder for your financial goals4: Navigates to numbered disclaimer.
