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Sanders, Ocasio-Cortez Propose 15% Cap on Credit Card Interest

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Moderator

Re: Sanders, Ocasio-Cortez Propose 15% Cap on Credit Card Interest


@myscorerocks wrote:

Actually, I'm seeing people with 700+ with higher interest rates (myself included). In fact, I saw someone post yesterday with scores around 820 with a interest rate around 17%. **bleep**? 


With the increases in the prime rate over the past few years and lenders adding on to it (Chase for instance sending out those nice "we're increasing your APR to be in line with" [what new applicants are being given] letters), it's actually fairly rare for those of us with excellent credit to receive APRs lower than 17% unless they're no-frills cards, credit union cards, or both.  Case in point, I'm happy to have "low" 17-18% APRs (lowest available) on my $400-550 annual fee cards like Sapphire Reserve, Altitude Reserve, Delta Reserve, Marriott Bonvoy Brilliant, and Amex Platinum (for Pay Over Time).

 

Due to banking interests, I don't forsee this ever passing, but perhaps by starting the conversation at 15%, there could be some middle ground reached where we can eliminate 30%+ credit card APRs and the predatory things like payday and title loans that can reach astronomical percentages.


Message 21 of 29
Regular Contributor

Re: Sanders, Ocasio-Cortez Propose 15% Cap on Credit Card Interest


@myscorerocks wrote:

Actually, I'm seeing people with 700+ with higher interest rates (myself included).


Me, too... my scores are EQ 795, TU 794, EX 805, and I was just approved for 3 cards with rates above 20%. There's a lot more to calculating these rates than just scores, though.

Message 22 of 29
Moderator

Re: Sanders, Ocasio-Cortez Propose 15% Cap on Credit Card Interest

Heck back in the 80's people with excellent credit were paying 15% on interest for their houses, imagine that..ouch..  Anyways agree it will never happen.

Chase | Citibank | Amex | BofA | PenFed | NFCU | Discover | 5/3rd | Synovus | Commerce | FNBO | Union Bank | Regions
Message 23 of 29
Moderator Emeritus

Re: Sanders, Ocasio-Cortez Propose 15% Cap on Credit Card Interest


@CreditCuriosity wrote:

Heck back in the 80's people with excellent credit were paying 15% on interest for their houses, imagine that..ouch..  Anyways agree it will never happen.


Well those high interest rates were one of the primary reasons leading to the S+L crisis back in the 80's so be careful what one wishes for regarding high interest depository rates too.

 

Did read a Vanity Fair article today that seemed offended that rates weren't higher, go go Baby Boomer searching for rates with their impending retirements I guess... never mind the implications to the rest of the economy that higher rates would be: so what if a bunch of accredited investors lose their collective ass on increasingly sketchy investment instruments, it's only the top of the economic food chain that would, not the mass affluent nor the middle classes nor anyone else, boohoo.




        
Message 24 of 29
Super Contributor

Re: Sanders, Ocasio-Cortez Propose 15% Cap on Credit Card Interest

Your best weapon against high interest rates is your credit score and looking at alternative souces of money like PayPal, Bread and a local CU.

04/24/2019: FICO 849 EQ 845 TU 848 EX
Message 25 of 29
Super Contributor

Re: Sanders, Ocasio-Cortez Propose 15% Cap on Credit Card Interest

Just saw an articled about this on Fox New.  LOL it is called the Loan Shark Prevention Act and if passes then the only loan shark left in the tank would be the non private sector one.

04/24/2019: FICO 849 EQ 845 TU 848 EX
Message 26 of 29
Regular Contributor

Re: Sanders, Ocasio-Cortez Propose 15% Cap on Credit Card Interest

BYE BYE !


@marty56 wrote:

Also watch happens to those 0% BT or check offers  and 5 year store cards at 0% if they do this.


 

Message 27 of 29
Valued Contributor

Re: Sanders, Ocasio-Cortez Propose 15% Cap on Credit Card Interest

I've read over the various comments here and having been one of those folks that had an emergency to happen. I received a letter from Amex stating my Apr. will increase to 20.24 Aug 15 to be what it should be for my current EX fico and this is the rate they say I'd get from any other card I'd app for. They then proceeded to state this was based on my EX fico of 760,w/no current installment loan(pd off car 2yrs or so ago).So, been carrying a bal. of ~2k on a 12.5k CL since apr was low,now I will just pay it off on Aug.8th due date and tuck the ED away.Have several others w/ much lower apr if need 2 carry. Knock on wood haven't experienced this w/Chase,but 2nd x from amex. As far as file goes it's clean,no mortgage tho,or install,and AAoA nearly 5yrs.
Message 28 of 29
Valued Contributor

Re: Sanders, Ocasio-Cortez Propose 15% Cap on Credit Card Interest

Also would it be impossible to have 8% or so for better credit folks I believe today's prime is 5.25%.Why does Apr. have to be double or triple the prime? Even at that amount with millions of customers they'd still make a killing. But it's true we don't have to use them which is my option, I won't let them make any money off me, anymore emergencies occur I'll just pay them or suffer.
Message 29 of 29
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