If you’ve ever taken on debt of some kind — such as a mortgage, credit card, or auto loan — you probably took note of the interest rate charged. But how do financial institutions calculate this number? Do they just pull it out of thin air?
In reality, these institutions look to Bankrate, a company that’s become the financial industry’s leading aggregator of research, interest rates and personal finance news. Surveying roughly 4,800 financial institutions across all 50 states, Bankrate distributes daily financial research and market conditions to leading media outlets like the New York Times, USA Today, the Wall Street Journal and many more.
But how did Bankrate become the go-to source of financial rate information?