News
September 08, 2025
Americans would save $100B if credit card rates were capped as Trump proposed, researchers say
The paper found that banks would still be able to earn a profit on most customers even if credit card interest rates were capped at 15%.
**Study Finds Americans Could Save Billions with Credit Card Rate Cap**
A new study suggests that American consumers could collectively save a staggering $100 billion if credit card interest rates were capped, echoing a proposal once floated by former President Donald Trump. The research delves into the potential economic impact of such a cap, focusing specifically on limiting interest rates to 15%.
The core finding of the study, which is sure to spark debate amongst consumers, financial institutions, and policymakers, indicates that capping credit card interest rates at 15% would significantly alleviate the financial burden on millions of Americans. With many credit cards currently charging interest rates well above this threshold, often exceeding 20% or even 25%, the proposed cap represents a substantial decrease in borrowing costs for consumers.
But what about the banks? A key element of the research addresses concerns about the potential impact on financial institutions. The study concludes that, even with a 15% interest rate cap, banks would still be able to maintain profitability on the vast majority of their credit card customers. This suggests that a rate cap would not necessarily cripple the credit card industry, but rather require banks to adjust their business models and potentially focus on other revenue streams.
The implications of this study are far-reaching. With Americans carrying trillions of dollars in credit card debt, high interest rates can trap individuals and families in a cycle of debt, making it difficult to save for retirement, purchase homes, or invest in education. A $100 billion reduction in interest payments would free up significant capital for consumers to spend on other goods and services, potentially boosting the overall economy.
However, the proposal is likely to face strong opposition from the banking industry, which argues that higher interest rates are necessary to offset the risk of lending to consumers with varying credit scores. Critics of rate caps also suggest that they could lead to reduced access to credit for some borrowers, particularly those with lower credit scores, as banks may become more selective in issuing credit cards.
Despite these potential drawbacks, the study provides compelling evidence that a credit card interest rate cap could provide substantial financial relief to American consumers, without necessarily jeopardizing the profitability of the credit card industry. The debate is now likely to intensify, with consumer advocacy groups potentially using the study to push for legislative action to implement such a cap.
A new study suggests that American consumers could collectively save a staggering $100 billion if credit card interest rates were capped, echoing a proposal once floated by former President Donald Trump. The research delves into the potential economic impact of such a cap, focusing specifically on limiting interest rates to 15%.
The core finding of the study, which is sure to spark debate amongst consumers, financial institutions, and policymakers, indicates that capping credit card interest rates at 15% would significantly alleviate the financial burden on millions of Americans. With many credit cards currently charging interest rates well above this threshold, often exceeding 20% or even 25%, the proposed cap represents a substantial decrease in borrowing costs for consumers.
But what about the banks? A key element of the research addresses concerns about the potential impact on financial institutions. The study concludes that, even with a 15% interest rate cap, banks would still be able to maintain profitability on the vast majority of their credit card customers. This suggests that a rate cap would not necessarily cripple the credit card industry, but rather require banks to adjust their business models and potentially focus on other revenue streams.
The implications of this study are far-reaching. With Americans carrying trillions of dollars in credit card debt, high interest rates can trap individuals and families in a cycle of debt, making it difficult to save for retirement, purchase homes, or invest in education. A $100 billion reduction in interest payments would free up significant capital for consumers to spend on other goods and services, potentially boosting the overall economy.
However, the proposal is likely to face strong opposition from the banking industry, which argues that higher interest rates are necessary to offset the risk of lending to consumers with varying credit scores. Critics of rate caps also suggest that they could lead to reduced access to credit for some borrowers, particularly those with lower credit scores, as banks may become more selective in issuing credit cards.
Despite these potential drawbacks, the study provides compelling evidence that a credit card interest rate cap could provide substantial financial relief to American consumers, without necessarily jeopardizing the profitability of the credit card industry. The debate is now likely to intensify, with consumer advocacy groups potentially using the study to push for legislative action to implement such a cap.
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