Trump calls for a 10% cap on credit card rates

If Bernie and AOC are behind it then I can support it. I'm just glad that Trump was able to get on board

 

Yay socialism!

 

I can only assume based on the overdraft fees thread that the MAGA crew will be completely opposed to this idea. After all, if people can't afford something then they shouldn't charge it and carry a balance on their credit card.

 

It doesn't matter to me, I haven't carried a balance on my cards for the last 20 years. I buy everything I can on them for my points. I've also haven't bought a plane ticket in the 5 years, all on points

 

They should also require you to pass a financial literacy test as part of the credit card approval process

 

I've taught all 3 of my kids about credit cards and how to use them. They make it very easy for people to get into debt

 

While I’d like to think there are high interest rates for good reason (folks with bad credit who are more of a risk), I use my credit cards like a debit card to get points and pay the balance off each month, have great credit, no debt, yet my interest rates are always are in the high teens and up.

 

What cc is best for earning flights?

 

why not just earn cash back and then use that money to pay for the flight. But nerdwallet has good information on what credit card is best for different awards

 

Because the airline miles can be worth much more than what you would earn with cash. If you are flexible with your itinerary sometimes airlines release savor rates on business class flights

 

Currently there is no federal cap. I would not be in favor of the 10% cap.

 

Yes, if you play the game you can do well. Thepointsguy has lots of strategies you can follow but it can be a hassle. I just stick with cash back. Simple and doesn’t require much thought. As a bonus, one can use different credit cards that give higher percentages for specific categories. My main card is fidelity @2% with a sprinkling of other cards

 

What card do you recommend for earning flights?
FYI, You could get banned for wrong answer…

 

If you believe in the market then you should oppose this action. Trump issuing this order and that order will eventually paralyze the economic process. What business person would risk getting in a venture when the next day it could be severely impaired or wiped out by an EO by POTUS?

Trump is not a conservative. I like securing the border and rooting out corruption but this is no different than Mamdani freezing rents.

 

will bank cancel credit cards of high risk people since 10% wouldn't be worth it for them?

 

They'd have to I think. 10% unsecured debt to high risk individuals can't be a sustainable business model. Or they may increase their transaction fee percentage and hurt everyone.

 

100%. Risk has a cost and if we artificially change one way to deal with it another way will be created. $100 fee for a basic credit card with no benefits, minimum $25 service fee if you do not pay the balance in full and so on. Think of a balloon- you can squeeze one part but the rest expands as it adapts…until it pops.

 

All this will do is raise transaction and annual fees. They will also cap people much lower credit and cut off some people altogether

 

I know this is vague but it depends on where you live and where you want to go. Chase Sapphire cards transfer to United and Citi Strata transfers to American. Both of those are good. Delta sky Miles are pretty worthless and takes a lot for anything outside of economy