Americans would save $100B if credit card rates were capped as Trump proposed, researchers say

KEY TAKEAWAYS:

A 10% cap on credit card interest could save Americans $100 billion per year

Banks could remain profitable by adjusting rewards programs and relying on interchange fees

Vanderbilt University research provides academic support for Trump’s proposed cap

Lower-risk borrowers would maintain rewards, while high-risk borrowers may see modest reductions

Americans would save roughly $100 billion a year in interest costs if President Donald Trump’s campaign proposal to cap credit card interest rates at 10% were implemented, according to a paper published by Vanderbilt University on Thursday.

Further, the banks and credit card companies would be able to withstand, and even still be profitable, if there were to be a national cap on interest rates . While limited in scope,