DON'T CRASH OUR CREDIT
When Washington Caps Interest Rates, Consumers Lose Credit Cards
A government-imposed cap on credit card interest rates would eliminate or limit credit lines for up to 85% of Americans – that’s 8 out of 10 credit card holders with a credit score below 800.
Recently, certain members of Congress have proposed extreme caps on credit card interest rates. This policy would lead to cardholders losing their credit cards and the credit they need to pay for everyday goods and services – effectively killing credit cards as a payment option.
TELL CONGRESS
Don’t Crash Our Credit. Reject caps on credit card interest rates and protect access to safe, flexible, and regulated credit for consumers and small businesses.
Federal credit card caps would make life more expensive for everyone. It would reduce access to affordable credit, increase bank fees, and trigger immediate drops in people’s credit scores, meaning increased lending costs for everything from home mortgages to auto loans.
Federal credit card caps could trigger an immediate recession by pushing consumer spending off a cliff. Consumer spending fuels the American economy, driving 70% of GDP – and $6T of that spending is on credit cards. Cutting off credit and limiting consumer purchasing power would reduce economic output by up to $714 billion.
WHO GETS HURT
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Consumers will see lower credit limits, fewer approvals, or closed accounts.
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Working families could lose a flexible source of emergency funds when a car repair, rent, or utility payment comes due.
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Small businesses could lose a practical tool for managing cash flow, purchasing inventory, or covering short-term expenses.
BETTER WAYS TO COMMUNICATE
One in three Americans have no emergency savings set aside, making credit cards a necessary lifeline for millions of people struggling to make ends meet. For the family relying on their card for emergency car repairs, or the small business trying to make payroll – losing access to credit simply isn’t an option.
Proposals to cap credit card interest rates do not address the real and pressing problem of affordability that the country is facing. The cost of living, limited wage growth, and skyrocketing healthcare costs are saddling working families and making life unaffordable. Researchers affirm that a broader set of solutions is needed to help address the root causes of the affordability crisis.
Additionally, policymakers should focus on solutions that expand access, improve financial resilience, and preserve consumer choice. That means promoting financial literacy, supporting responsible underwriting, and strengthening competition.
Financial literacy is especially important for young Americans who will eventually participate in the banking system. Unfortunately, according to a 2025 study, U.S. adults, on average, answered only 49% of financial literacy questions correctly. More work is needed to fix this.
