Trump floated a 10% credit card interest rate cap. Here's what that could mean for consumers.
CBS News • • business
Key Points:
- President Trump proposed capping credit card interest rates at 10% for one year, potentially saving consumers $100 billion annually, but experts warn it could restrict credit access for low-income and subprime borrowers.
- The average credit card interest rate is nearly 24%, with some consumers paying up to 36%, making the proposed cap a significant reduction that could lower monthly interest payments substantially.
- Critics, including the banking industry and analysts, argue that a 10% cap may lead banks to cut off credit to riskier borrowers, possibly driving them toward more expensive and less regulated lending options, which could reduce overall consumer spending by about 5%.
- Supporters counter that credit card companies could absorb lower interest revenues by adjusting rewards programs
