"In January 2026, mortgage industry professionals and banking trade groups warned that President Donald Trump's proposed 10% interest rate cap on credit cards could have unintended negative consequences for homebuyers and the broader economy. While intended to provide financial relief, experts argue the measure could inadvertently tighten credit access and damage borrower credit scores. The primary concerns cited by mortgage and finance experts include:"
"Harm to Credit Scores: If lenders slash credit limits or close accounts to mitigate risk, cardholders' credit utilization ratios will likely spike. Higher utilization typically leads to lower credit scores, making it harder for prospective homebuyers to qualify for favorable mortgage rates."
A proposed 10% interest-rate cap on credit cards could prompt issuers to close or drastically reduce credit lines for 74% to 85% of active accounts, affecting up to 159 million cardholders according to ABA estimates. Reduced credit limits would raise credit utilization ratios, lowering borrower credit scores and making mortgage qualification more difficult. Families could face tighter cash flow while saving for down payments. Banks losing card revenue may increase rates or fees on other products. Even super-prime consumers with VantageScores above 780 could see reduced benefits and limits. Some consumers may shift to high-cost, less-regulated lenders; payday loans averaged 391% nationally in 2025.
Read at Boston Condos For Sale Ford Realty
Unable to calculate read time
Collection
[
|
...
]