- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Winter Olympics
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Capping credit card rates is going to have unintended consequences
Posted on 1/13/26 at 12:59 pm to DyeHardDylan
Posted on 1/13/26 at 12:59 pm to DyeHardDylan
People will probably buy less Chinese crap at Walmart and the Dollar Store.
0
Posted on 1/13/26 at 1:01 pm to DyeHardDylan
quote:
Capping them at 10% means less people will be approved for credit cards, as the companies will want to reduce the amount of risk they take on.
Maybe time to promote the great product of Secured Credit Cards.
Put up 10k in the bank in savings, so you can charge up to 10k in purchases. If you fail to pay the bill at 10% interest and annual fees, they seize the 10k in savings.
Posted on 1/13/26 at 1:03 pm to DyeHardDylan
The opposite will happen. Americans are overwhelmingly in credit card debt.
They will be forced to live within their means
They will be forced to live within their means
Posted on 1/13/26 at 1:03 pm to LSUTANGERINE
quote:
It won’t happen. Trump is just talking again.
100%
Posted on 1/13/26 at 1:05 pm to DyeHardDylan
I think that capping at a particular number is insanity. I'm okay with capping them at a certain % above prime
Posted on 1/13/26 at 1:05 pm to DyeHardDylan
quote:
less people will be approved for credit cards
quote:
more people will go into debt
Does not compute.
Posted on 1/13/26 at 1:06 pm to Deuces
quote:
Maybe more people will quit buying things they can’t afford
If the interest rate is only 10%, why not max out the card?
Posted on 1/13/26 at 1:07 pm to TBoy
quote:
If the interest rate is only 10%, why not max out the card?
Thoughts of an economic illiterate.
Posted on 1/13/26 at 1:09 pm to DyeHardDylan
quote:
Capping them at 10% means less people will be approved for credit cards, as the companies will want to reduce the amount of risk they take on.
At first, sure. The credit card companies aren't going to willingly lose access to all of that revenue generated by consumers continually carrying balances though. They'll come up with some method to balance out the risks of sub-prime customers (memberships, increased late fees, lower ceilings, etc).
quote:
Those who borrow will be less incentivized to pay their bills and more people will go into debt.
Sort of. I think that will happen in the short term as the more irresponsible see their lessened credit card bills as being a largess and thus a reason for them to spend even further into debt. Over time it would depend on what the credit card companies do to compensate for their potentially greater losses.
Posted on 1/13/26 at 1:10 pm to BBONDS25
quote:
Thoughts of an economic illiterate.
Fiscal as well, which is why people like Dave Ramsey have such a thriving business.
Posted on 1/13/26 at 1:11 pm to BBONDS25
quote:
Thoughts of an economic illiterate.
Do you think the average American would only approach credit card debt in a sophisticated manner if Trump capped the rate at 10%?
Of course not.
Capping the rate won't create more disciplined credit card users. It will make it seem less costly and less risky to max the cards out.
The "economic illiterates" are exactly who I am describing.
Posted on 1/13/26 at 1:11 pm to deeprig9
quote:
No, they simply won't be approved, congruent to your opening sentence.
No, because its not that simple. Many of them will be approved and it will get worse. Others will not get approved and will help balance out the debt.
The hope is that the increase in paid debt + minimized approval will outweigh the extra "bad debt" incurred by the bad apples getting approval.
Posted on 1/13/26 at 1:11 pm to LordSaintly
quote:
I fear that many will turn to payday loan shops
These places are all over SC... they seem predatory as hell, but people use them.
Posted on 1/13/26 at 1:15 pm to David_DJS
quote:
Because credit card companies won't look to replace all that revenue/margin?
That's a fair point, will be interesting to see what happens to all these rewards programs & cashback programs if the cap goes through.
I'm sure the ratios will be adjusted but we'll probably see some companies adjust poorly and take on a lot of extra risky customers
Posted on 1/13/26 at 1:21 pm to DyeHardDylan
quote:
Europe: EU caps interchange fees (bank-to-bank charge per transaction) at 0.3% for credit cards ? much lower overall costs. USA: No cap ? interchange fees average ~1.8-2%, among world’s highest. This means merchants pay far more in the US, often leading to higher prices or surcharges. Consumer foreign transaction fees are common in US (~3%), rare in Europe.
The Merchant Fees in Europe are far cheaper than the states. In top of ridiculous interest rates.
Posted on 1/13/26 at 1:25 pm to Dantheman504
quote:
Less fees = less stress/ burden to take care of it.
Couldn’t this also make it easier, both monetarily and psychologically, to decide that they can pay off their debt?
Posted on 1/13/26 at 1:26 pm to AncientTiger
There isn't many things that just floor me, but I recently learned of "planning bankruptcies"
I naively thought that bankruptcy was.a big deal. Apparently, you can get a credit card as soon as you walk out of the courthouse, and within a couple years, you can get approved for thousands in credit line.
There is a system where every seven years one declares bankruptcy and starts over, having barely paid a bill.
These people do not need credit cards, mortgages, car loans - anything.
I naively thought that bankruptcy was.a big deal. Apparently, you can get a credit card as soon as you walk out of the courthouse, and within a couple years, you can get approved for thousands in credit line.
There is a system where every seven years one declares bankruptcy and starts over, having barely paid a bill.
These people do not need credit cards, mortgages, car loans - anything.
Posted on 1/13/26 at 1:27 pm to BugAC
quote:Thank you, comrade, for being so bold as to control our economy from the top down.
Capping them at 10% means less people will be approved for credit cards,
good
Posted on 1/13/26 at 1:32 pm to DyeHardDylan
quote:
Those who borrow will be less incentivized to pay their bills and more people will go into debt.
So just to understand, you are saying the lower rates will increase the demand for debt by more than the lower rates decrease overall debt itself?
Posted on 1/13/26 at 1:33 pm to Deuces
quote:
Maybe more people will quit buying things they can’t afford
Due to lower rates?
Page 2 of 5
Popular
Back to top
Follow TigerDroppings for LSU Football News