Credit Card Rate Caps Eliminate Access for 175-190 Million Americans, Nearly 90% of Cardholders

Most Impacted Segments: Low-Income Households, Young Workers, Small Businesses

WASHINGTON, D.C. – Proposals to cap credit card interest rates at 10% would dramatically restrict access to credit for all Americans. A new Electronic Payments Coalition study found nearly 90% of current cardholders – between 175-190 million Americans – would effectively lose access to credit. Essentially, any American with a credit score of less than 740 – well above the national average – would see their card eliminated or credit limit drastically reduced.

Americans with shorter credit histories, like young adults 25 and under, and small business owners, who often put business purchases on their personal credit card, would be harmed by these reductions in credit. The reduction or elimination in credit would crush consumer spending and hurt our nation’s economy. 

Senators Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.) last year introduced legislation capping credit card APRs at 10% and President Donald Trump last week voiced support for a cap.

“A one-size-fits-all government price cap may sound appealing, but it wouldn’t help Americans – it would do the exact opposite, harming families, limiting opportunity, and weakening our economy,” said EPC Executive Chairman Richard Hunt. “Credit cards are often the first and most important tool young people use to build a credit history, and they serve as a critical financial lifeline for LMI households facing emergency expenses.

“History is clear that government price controls don’t make costs disappear, they simply reduce access, push consumers out of safe, regulated credit, and leave the very people they claim to help with fewer options when they need them most.”

Key Findings in the new EPC report:

• 82–88% of open credit card accounts would effectively lose access to credit under a 10% APR cap.
• Nearly every credit card account associated with a credit score below 740 would be closed or severely restricted.
• 175–190 million American cardholders would effectively lose access to credit cards nationwide.
• All remaining cardholders — regardless of credit score — would face lower credit limits, tighter underwriting standards, and reduced or eliminated rewards.
• LMI households and young consumers would be most likely to lose access, limiting their ability to build credit or manage financial shocks.

Consumers shut out of credit cards would likely turn to higher-risk alternatives exempt from the cap, including payday lenders, unregulated online lenders, title lenders, and pawn shops.

Even consumers who retain access to credit would see their cards become less useful. Reduced credit limits and tighter standards would make it harder to cover emergencies, smooth household spending, or manage cash flow — particularly for families already living paycheck to paycheck.

The average credit score for Americans is approximately 715 with Gen Z, those born since 1997, having an average score between 667-678, depending on the model. The Federal Reserve Bank of New York found the average credit score for low income Americans was 658 and middle income at 735.

For young Americans, the consequences could be long-lasting. Credit cards are often a primary entry point into the financial system, helping students and early-career workers build a credit history needed to rent an apartment, buy a car, or qualify for a mortgage. Restricting access would delay or derail that progress for millions.

Small businesses would also face serious fallout. Many rely on credit cards to manage inventory purchases, cover short-term expenses, and bridge gaps in cash flow. Reduced access to revolving credit would limit growth, strain operations, and make it harder for entrepreneurs, especially minority- and women-owned businesses, to compete.

EPC’s study is copied below.