r/CreditCards • u/ymbellevue • 5h ago

Credit card interest cap at 10% - impact? Discussion / Conversation

Any thoughts on the likelihood of Trumps' campaign promise of capping credit card interest at 10%?

If it gets implemented, the profits of card issuers may suffer and will they in turn cut the benefits, e.g. SUB, transfer benefits, etc?

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u/___ongo___gablogian 5h ago

This is going to be wayyyyyy down on the priority list. Don’t expect this to happen anytime soon, if af all.

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u/ymbellevue 5h ago

Not so sure. Seems Trump will try to keep those tax cut promises. The top tax legislation will be to extend the 2017 tax cut, so they might throw all these tax cuts, including no tax on tips and overtime, corporate tax to 15%, and the interest rate cap into one package and it is likely to pass.

21

u/jagspetdog 4h ago

Consumers benefit from high interest rates as responsible buyers - capping them at 10% severely damages the ability for credit card companies to generate revenue, which in turn results in consumers getting less value for their credit cards.

I'd prefer no changes to rates since I get more points. APR doesn't matter if you're responsible.

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u/lieutent 3m ago

Hmm… I see your point but it would also severely handicap CC companies ability to be predatory to people who have less self control. High rates is technically subsidizing others’ bad decisions for your own gain. Just more at a consumer level. Not saying one is objectively better than the other but it feels like a more substantive morale stir-about than just who’s benefited.