CHARLOTTE, N.C.–Eight-in-10 Americans say they support a recent proposal by two members of Congress to cap interest rates on credit cards. But that support drops when then asked about what might happen if a cap were put in place.
As CUToday.info has reported, Sen.Bernie Sanders (D-VT) and Rep. Alexandria Ocasio-Cortez (D-NY) have both called for capping the maximum APRs on cards at 15%. Now, a new survey from CompareCards.com, a unit of LendingTree, has found support drops if the rate cap also means reduced access to credit for those with imperfect credit , or if it means less lucrative credit card rewards.
In a survey of 1,000 credit cardholders, CompareCards.com said it found:
- About half of American cardholders (53%) said they support Sen. Sanders and Rep. Ocasio-Cortez’s proposal to cap rates at 15%. Another 26% said they support a cap but think the maximum rate should be lower than 15%, and another 8% support a cap, but think the maximum rate should be higher than 15%. In all, just 14% said they didn’t support any form of the proposal.
- When asked broadly about rate caps rather than about a specific proposal, 83% said they feel there should be a cap on the rates a financial institution can charge on a credit card.
- 51% of cardholders said they would support a rate cap if it meant people with imperfect credit would have a significantly harder time obtaining a credit card, while just 18% said no (21% said they didn’t know; 9% didn’t answer.) Boomers were the most likely age group to agree.
- 47% of cardholders said they would support a rate cap if it meant credit card rewards might get reduced significantly, while just 27% said no. (17% said they didn’t know; 9% didn’t answer.)
- 77% of cardholders agree that there should be more laws and/or regulations in place to protect cardholders, while just 9% disagreed. (That’s down slightly from 79% in a previous survey.) 85% of Democrats agreed, as did 73% of Republicans.