Interest rates are what credit card companies charge in exchange for using their services and credit. This interest is the price for borrowing money, and credit card companies charge higher interest rates depending on the availability of credit in the credit market. If there is less credit available and more people are using credit, then interest rates may be higher. If there is an artificially low interest rate imposed by the government (i.e., a credit card interest rate cap), then more people will demand credit at that interest rate than is available. Credit card companies may decide not to lend to high-risk borrowers or offer fewer rewards for using their cards due to interest rate caps.

Source: Irish Independent January 15, 2026 04:59 UTC