The Federal Reserve’s decision to hold its benchmark interest rate steady between 3.50% and 3.75% marks the fourth consecutive pause in rate increases, signaling a persistent high-rate environment. Despite this unchanged stance, some borrowing options remain notably more affordable than typical credit-card debt, which continues to carry annual percentage rates (APRs) in the low 20% range.

Credit-card interest rates at these levels keep revolving balances expensive, prompting many consumers to seek alternatives to manage costly debt. Personal-loan inquiries for debt consolidation recently accounted for nearly one-third of all requests, reflecting a strong demand for refinancing options with lower rates.

Among the more accessible borrowing avenues, credit unions offer some of the lowest rates available on personal loans. The national average APR on a three-year personal loan at a credit union stood close to 10.7%, which is substantially below the broader personal loan market. Highly qualified borrowers, especially those with strong credit histories, may find promotional offers as low as under 6% in some cases, though these deals tend to be limited and require exemplary credit profiles.

For borrowers seeking unsecured personal loans from online lenders, the average rate is somewhat higher. Borrowers with solid credit scores (around 700) looking for mid-sized loans face average rates just over 12%, while the best-qualified applicants may secure rates near 6%. However, rates increase quickly as credit quality declines or loan amounts grow, shrinking the gap with costly credit cards.

Homeowners with built-up equity can tap into another cost-effective borrowing source. Home Equity Lines of Credit (HELOCs) average around 7.5%, and fixed-rate home equity loans near 8.1%. Though these options come with lower interest expense compared to unsecured loans, they involve collateralizing the home, which carries added risk if borrowers default.

The Fed’s current stance and forward-looking projections suggest that interest rates are likely to remain elevated throughout the year. Borrowers face a clear ranking of borrowing costs: first, credit-union loans for the lowest rates; next, competitive online personal loans; and last, home equity loans when the lower interest rate justifies the risk to property security.