Experts Warn Consumers Could Pay More If 10% Credit Card Cap Limits Rewards and Raises Other Fees

Core Viewpoint - President Trump's proposal to cap credit card interest rates at 10% for one year represents a significant reduction from the current average of around 20% in the U.S. [1] Group 1: Impact on Borrowers - The proposed cap may lead to tighter credit requirements, making it difficult for new borrowers and those with limited credit history to obtain credit [3] - Many Americans, particularly those living paycheck to paycheck, could be adversely affected as they rely on credit cards and often carry a balance [4] - The cap may disproportionately impact borrowers who are already struggling financially [4] Group 2: Effects on Reward Programs - Individuals who utilize credit cards for rewards may experience a decline in benefits, as the cap could lead to reduced perks and rewards [5] Group 3: Potential Increase in Debt - The introduction of a 10% cap might encourage higher debt levels, as the deterrent of high-interest rates would be diminished, potentially leading consumers to borrow more [6] Group 4: Changes in Fees - Credit card companies may respond to the cap by increasing service fees, which could result in higher costs for consumers when making purchases [7]