The Federal Reserve's quarter point rate hike this week, its first increase in more than three years, is already working its way into the cost of borrowing from banks. The Fed sets the federal funds rate typically gets passed straight through to variable rate bank loans for consumers.  

Personal loan rates have already climbed to an average of 11.86%, though advertised rates from banks currently competing for new borrowers still run lower, generally in the 7% to 8% range.  

Since the prime rate that many bank loan products are benchmarked to moves in step with Fed policy, meaning private student loans and other bank originated credit lines tied to that benchmark will reprice higher as well.  

Finsum: With the fed funds rate feeding directly into bank overnight lending costs, last week's hike is already pushing personal loan and other variable rate bank loan pricing higher.