Nicole Lapin

That means you could be paying hundreds of dollars a month and barely even touching the actual balance.

And with prices rising across the board, food, housing, transportation, insurance, this kind of high interest debt starts to feel like a trap that you cannot escape.

So if you have a big credit card bill, you are probably loving this.

Banks are not.

And here's the plot twist.

Credit card holders shouldn't be loving this either.

From the banks POV, credit cards are a huge profit center.

So that is a big part of their opposition to this.

But here's the real reason that capping interest rates is a potential problem for all of us.

It might limit access to credit.

credit.

Now, this sounds unrelated, but here's the link.

Your credit card APR is based on risk.

Higher credit score, lower APR.

Lower credit score, higher APR.

It's basically a seesaw.

That is not a moral judgment.

That is just how unsecured lending works.

With secured lending, creditors can take your collateral if you don't pay, like your home in the case of a mortgage or your car in the case of a car loan.

So if you cap the rate at 10%, lenders lose the ability to price for risk.