What will be the credit card roof effect?

New legislation in the Congress, which was presented by the unlikely Senators, is to impose a credit card ceiling on the credit card, with the possibility that the draft law becomes such a law with the help of the president by the president. Donald Trump The campaign pledged on this topic.

SENS. Bernie Sanders, I-VT, Josh Hawley, R-MO. , Legislation that would CAP credit card interest rates 10 % for a period of five years after the enactment of the bill. Popular Senate members described this measure as a way to fulfill the campaign pledged by the Trump campaign last year.

The introduction to the bill can allow the White House support to suggest the idea to gain traction, although there are consequences for politics and still faces a long way to legislate.

“The credit card price covers have always been the longest long shots because there are many people lining up against them for various reasons, but no one should surprise that the maximum rate is common,” Matt Schools, chief credit analyst at Lindingtree, told Fox Business.

Josh Holie, Bernie Sanders suggests a 10 % credit card interest rate

Chuls said that Lindingtree conducted a poll that showed that the respondents continued to support the idea of ​​a credit card, even if that means restricted access to credit and decreasing credit card rewards.

“It is still a long snapshot, but there is no doubt that the idea is political with some winds in its back at the present time, and if that happens, this may be the low time ever.” He said.

Schools added that the credit cards provided by legal Credit unions He crowned 18 %, which still offers rewards but not profitable like those offered by large banks. He went on to say that the maximum level on this level or that 20 % will be important for consumers who deal with credit card debts with a better opportunity to become a reality.

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Many of the leading commercial groups that represent Financial services industry Send a message to Hawley and Sanders, which determines their opposition to the maximum interest rate of 10 % of the credit card. The signatories of the letter included the Bankers Association for Consumers, the American Credit Credit, the American Financial Services Association, the Institute of Banking Policy, the Independent Society Banks, America, the American Banking Association and the National Banqueen Association.

The message was cited with economic research, which shows that the preparation of government prices on APR caps is harmful to consumers, partly because it “will cancel access to credit cards. Millions of consumers And pushed them to credit sources that are more expensive and less organized. “

The groups noticed the state of Illinois imposed a ceiling for the rate, which is what Federal Reserve I searched and found an official to reduce the number of loans for sub -borrowers by 38 percent. They also referred to a study conducted by the researchers in Dartmouth who found Oregon’s roof, which cost 36 % of them responsible for “harm, not assistance, and consumers on average” and “restricting access caused a deterioration in the comprehensive financial state of Oregon’s families.”

“As well responsible and organized financial institutions, we share the goals of reducing the cost of consumer credit and increasing financial inclusion. Unfortunately, the maximum rate of 10 percent proposed in this legislation will lead to strangling our joint financial goals, reduces access to credit and the groups wrote that Consumers have pushed consumers to more expensive and less organized lenders.

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Although it is unclear whether Congress will consider legislation that determines the interest rates of credit cards, Schults noticed that there are still steps that consumers can take to reduce their financial burden.

“The good news is that there are a lot of things that you can do yourself to lower your interest rate A low -interest personal loan, this is a good option if you can’t get a 0 % balance transfer card. “

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“You can even call your credit card source and ask for a lower price. Celsius is really important. ” “So it is not worth the invitation at all, because this type of success rate shows that not only people with 800 credit and long traumors are the paths who get their way – it’s also ordinary people who really need help.”