Impact of Credit Card Interest Rate Caps on Access to Credit

At the World Economic Forum, President Trump proposed capping credit card interest rates at 10%, a move already suggested by Senator Bernie Sanders. Critics argue this could harm lower-income borrowers by limiting their access to credit, as lenders would be unable to charge rates that reflect default risks. Historical precedents show that such price controls can restrict credit availability, driving borrowers to high-cost alternatives. Instead of imposing caps, promoting competition and financial literacy is seen as a better solution.

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