Some analysts and economists agree that a cap, on its own, might not benefit consumers as much as Trump and lawmakers across the political aisle claim.
“A 10% cap may not be the right solution because the people that are already in trouble, that’s not necessarily going to help them,” said Schmidt of Exchange Capital Resources.
Benedict Guttman-Kenney, an assistant professor of finance at Rice University, said banks might respond by limiting how much they lend to people with lower credit scores, who are considered higher-risk borrowers. Those are the people most at risk of losing access to credit cards, he said.
Banks, he added, might also try to recoup their revenue elsewhere, like by raising annual fees or late fees.
“It’s not clear that…