Trump wants to cap credit card interest rates at 10%. But such limits could harm consumers, experts warn

Credit cards are the sharpest double-edged sword in Americans’ personal finance arsenal.

They can be an indispensable tool for coping with financial hardship, a great way to finance your family vacation, or a free pass granting access to luxury lounges at the airport. But for many consumers, they can also be a debt trap with no escape.

Like Robin Hood in reverse, credit card companies take the interest payments from those who carry a balance and redistribute them as rewards that benefit people who don’t.