LOUISVILLE, Ky. — It’s been ten years since Julia King started her business King Financial Repair.

“I’d love to help people and I can make bigger changes doing credit score improvement than I can doing anything else,” King said. 

She helps clients improve their credit scores to improve the likelihood of reaching goals like homeownership. However, King said that today’s rising interest rates are making this harder. 

This week, the Federal Reserve approved a 4th consecutive three-quarter point interest rate increase. It makes the sixth hike this year. 

“Rates are 50% higher for an auto loan now than they were back in January. An average house in Louisville this summer was $300,000, so in January it would have cost $1,800 a month and now it will cost $2,400 a month to 27,” said King. 

King says rising interest rates are also pricing people out of homeownership. 

“People who were originally qualified for loans are no longer qualified for those same loans, so they’re having to pull back and then try to find a home that’s a lesser value because they haven’t been able to lock in their interest rates,” King explained. 

Rising rates plus inflation add up to an awful mix for her clients who try to keep their credit card usage to under 20% of purchases. 

“That’s what the mortgage applications they’re looking for so they can have a higher score. They’re unable to do that because they’re going to the grocery store and either put it on their credit card or not feed their families,” King said. 

For King, the worst part is seeing her clients’ goals put on hold. 

“It’s scary. It really is. When people aren’t able to buy a home and then they’re still renting, they’re not being able to build generational wealth and break that cycle for their family,” King finished. 

She fears if rate hikes continue, more consumers and families will feel financial pain.