How a 10% interest cap on credit cards would affect you

Credit cards provide convenience and flexibility – the opportunity to purchase a product or service today with someone else’s money that you can repay later. Problem is, that plastic perk can prove costly if you don’t pay down your debt on time due to a high rate of interest charged by the credit card company, which could exceed 20%.

Recently, the Trump Administration has called for a 10% cap on credit cards. Whether enough banks and credit card companies opt to do this voluntarily or an act of Congress will be required remains to be seen. In my latest article for Better.com, I take a closer look at how rates are set, what the President has proposed, and how a credit card rate cap would affect homeowners and homebuyers.