# Capping Credit Card Interest: An Idea So Bad that Both Democrats and Republicans Support It

- URL: https://talkfuse.com/story/capping-credit-card-interest-an-idea-so-bad-that-both-democrats-and-republicans-support-it/
- Published: 2026-11-13T12:00:57+00:00
- Updated: 2026-11-13T12:21:09+00:00
- Original publisher: Reason (publisher lean: Right)
- Original article: https://reason.com/2026/11/13/capping-credit-card-interest-an-idea-so-bad-that-both-democrats-and-republicans-support-it/
- Topics: Business, Economy, Politics

## Key points

- Trump and Warren both support a 10 per cent credit card rate cap.
- Research cited links rate ceilings with reduced access to credit.
- The article warns excluded borrowers may face costlier alternatives.

## Summary

Donald Trump and Senator Elizabeth Warren have both backed a 10 per cent cap on credit card interest, despite their political differences. The proposal is presented as consumer protection, but evidence cited in the article suggests it could restrict access to legitimate credit for people with riskier credit histories.

A Federal Reserve paper on Arkansas found that a 17 per cent ceiling limited non-prime borrowers’ access to loans, while some finance companies did not operate there because they could not lend profitably. An American Enterprise Institute report warned that a federal 10 per cent cap could lead issuers to cancel many near-prime and subprime accounts or impose high fees and collateral requirements. The article argues that people shut out of mainstream credit may turn to costlier alternatives.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.