The David Lin Report Credit Card Crisis? Rate Cap Threatens 90% Of Americans | Ted Rossman
Jan 14, 2026
Ted Rossman, a Senior Industry Analyst at Bankrate, explores the implications of Trump's proposed 10% credit card rate cap. He argues that such a cap could limit credit access and shares insights on who supports it. Ted highlights the persistence of credit card debt, linking it to inflation and slow wage growth. He also provides strategies for building credit and discusses the dangers of low minimum payments trapping borrowers. Additionally, he forecasts the potential impact of Fed cuts on consumer rates and the housing market.
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10% Cap Risks Widespread Credit Loss
- A 10% federal cap on credit card APRs would likely force dramatic cutbacks in credit access according to industry warnings.
- The Electronic Payments Coalition estimates 90% of cardholders could see reduced access under such a cap.
Rate Cap Is Partly Political Messaging
- The rate cap proposal is political messaging tied to affordability concerns ahead of elections.
- Policymakers from both parties are rallying around populist fixes despite potential unintended consequences.
Unsecured Risk Explains High Card Rates
- Credit card lending is priced for unsecured risk and easy discharge in bankruptcy, which drives higher APRs.
- Average card rates hover near 20% while many subprime borrowers face 25–36% APRs, making a 10% cap unviable to lenders.