The President’s proposal to cap credit card rates at a maximum of 10% over the next year has gotten a lot of attention in the midst of a national affordability crisis. It’s understandable. Rates are flashy, and it sounds good to talk about bringing them down.
But I’d argue they aren’t what’s making things feel unaffordable, whether we’re talking about credit cards, mortgages or auto loans. They factor in, of course, but they’re hardly the biggest problem.
And, at least in the case of credit cards, a rate cap could lead to a bigger economic problem by a significant decline in access to credit for people with lower credit scores — a gut punch to…
Read the full article at BANKRATE.COM
