DPC Offers “Freedom to Borrow” Editorial Cartoon

Imposing interest rate caps on loans and restricting the credit options available to consumers are ill-conceived policies that do not achieve their desired outcome. The Domestic Policy Caucus is working to educate policymakers and stakeholders about this fact. 

Such policies unfairly target short-term, small-dollar loans that many disenfranchised and disadvantaged people use. People with subprime credit scores or “underbanked” or “unbanked” people often rely on these types of loans and other creative financing solutions to access credit for car repairs, to pay rent, or in a medical emergency.

Credit rate caps reduce purchasing power, not by making credit cheaper for everyone, but by limiting access to credit for many consumers, especially those with lower incomes or credit scores who need it most.

Without credit options, borrowers may turn to more damaging alternatives: overdrawing accounts, accumulating credit card debt they cannot repay, declaring bankruptcy, or seeking out unregulated, black-market lenders with far harsher terms.

Americans with modest means deserve the same range of financial tools as those who are better off. Preserving access to a variety of credit options is essential—not only to help families weather short-term challenges but also to give them a pathway toward greater financial stability and opportunity. 

To drive home these points, the Domestic Policy Caucus has produced this editorial cartoon and encourages anyone and everyone to download and use it with newspaper columns, blogs, social media posts, and so on.