How the prime rate works and how it affects you

"The prime rate is the best interest rate you can get, and it’s influenced by the economy.

When you apply for a financial product, including credit cards, personal loans and auto loans, lenders will charge you interest based on what kind of risk you pose to them.

While some factors are outside of your control, you can still be informed about the current prime rate and how banks decide on it. Below, CNBC Select breaks down what you need to know about the prime rate and how it affects your finances."