Jill On Money: Can Trump cap credit card interest rates?

"Although credit has been used throughout history, the first "modern" card dates back to 1950, when Diners Club issued a one available for use at several locations. Banks soon followed, issuing cards throughout the 1950s. At that time, it was difficult for minorities and women to qualify, but that changed in 1974, with the signing of The Equal Credit Opportunity Act of 1974 (ECOA)."

"Fifty years since the signing of the ECOA, use of credit cards has become ubiquitous in the economy. The upside is that Americans are able to access funds in an efficient and convenient way, and the majority pay off their balances in full each month. However 46 percent of cardholders carried a balance on a credit card for at least one month in the past year, according to a May 2025 Federal Reserve study, using 2024 data."

"Still, outstanding credit card debt stood at $1.233 trillion as of the end of September 2025, according to the most recent data from the Federal Reserve Bank of New York. The sheer numbers involved mean that when the president recently posted, "We will no longer let the American Public be ripped off by credit card companies that are charging interest rates of 20 to 30%," millions of those who carry credit balances were encouraged."

Credit usage dates back centuries, but the first modern card appeared in 1950 when Diners Club issued a card accepted at multiple locations. Banks issued cards throughout the 1950s, but minorities and women often faced barriers to qualification until the Equal Credit Opportunity Act of 1974 prohibited discrimination based on race, color, religion, national origin, sex, marital status, age, or public assistance. Credit card use is now ubiquitous, with many consumers paying balances monthly, yet 46 percent of cardholders carried a balance for at least one month in the past year. Outstanding credit card debt reached $1.233 trillion by September 2025. Proposals to cap interest rates at 10% have been advanced, but congressional action would likely be required.

Read at The Mercury News