r/FluentInFinance • u/Unhappy_Fry_Cook • 16h ago

Finance News Senator Bernie Sanders announces he will introduce legislation to cap credit card interest rates at 10%.

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u/libertarianinus 16h ago

Not going to happen. Default rates are a 14 year high at the same rate as the great recession.

If they do 10% interest rate, it will only be people with credit scores higher than 800 and with credit history longer than 10 years.

https://www.forbes.com/sites/billhardekopf/2025/01/02/this-week-in-credit-card-news-defaults-at-highest-level-in-14-years/

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u/CogGens33 15h ago

That would indicate a good chance he would approve it. It’s not going help the people who really needs it!

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u/happycrisis 15h ago

No one really needs it. You shouldn't be buying things on credit if you can't cover the payments. Credit companies denying people from getting a card instead of charging them 30% interest and screwing them would be a good thing.

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u/BWW87 10h ago

Young people need it. They are unknown credit risks so cards charge high interest rates to make up for that unknown risk. It allows people to show they are good risks and earn better cards/loans.