President Trump proposes capping credit card interest rates at 10% for one year, a significant drop from the current US average of 20%. Financial experts warn of potential consequences, including tighter lending requirements and limited credit access for certain borrowers. Those who maximize credit card rewards may also be impacted, with perks potentially decreasing or disappearing.

Finance expert Melanie Musson cautions that a 10% credit card cap may lead to higher debt, as the incentive to avoid high interest rates diminishes. Consumers could also face increased fees on their credit cards, potentially impacting all shoppers with higher costs for purchases. Stores may pass on credit card fees to customers, further adding to financial burdens.

Read more at Yahoo Finance: Experts Warn Consumers Could Pay More If 10% Credit Card Cap Limits Rewards and Raises Other Fees