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I’ve had the honor of serving as Indiana’s state treasurer since 2023, overseeing the management of more than $16 billion in state assets.
Before that, I was a small-business owner. I know what it’s like to build something from the ground up, take risks, sign the front of a paycheck instead of the back and work to create opportunities for others. That’s why I’m concerned about U.S. Sen. Elizabeth Warren’s CARD Act, which would cap credit card interest rates at 10%.
While the idea might sound appealing at first glance, the reality is that these proposals would make it harder, not easier, for many Americans to access credit. And the people hurt the most wouldn’t be Wall Street executives or wealthy investors. They would be young adults, working families and aspiring entrepreneurs.
Young people need a way to build credit.
Every financial journey starts somewhere. For many Americans, that first step is a credit card. A young person graduating from high school, trade school, college or entering the workforce often has no credit history at all. Without a record of borrowing and repaying debt, lenders have no way to evaluate risk.
A starter credit card allows young adults to establish a credit history by demonstrating responsible financial behavior over time. That credit history can later help them qualify for a car loan, rent an apartment, purchase a home or start a business.
But if lenders are prohibited from pricing loans according to risk, many of these entry-level credit products could disappear.
The result is simple: fewer opportunities for young Americans to build the financial foundation they need to succeed.
Working families depend on financial flexibility.
Life rarely follows a script. A vehicle breaks down. A furnace stops working in the middle of winter. A pet needs an unexpected visit to the veterinarian. Families are often forced to navigate expenses that weren’t part of the monthly budget.
Access to credit can help bridge those gaps. While no one should rely on credit cards as a long-term financial plan, having access to credit during emergencies can help families weather difficult situations without turning to even less desirable alternatives.
Interest rate caps might sound consumer-friendly, but when lenders cannot adequately account for risk, they frequently respond by tightening standards or withdrawing products altogether. That means many working-class families could lose access to credit just when they need it most.
Entrepreneurs need capital to grow.
As someone who started a software consulting business in rural Indiana, this concern is personal. Many successful businesses begin with a simple idea and a willingness to take a chance. But ideas alone don’t create jobs.
Entrepreneurs often need access to credit to purchase equipment, manage cash flow, buy inventory, launch marketing campaigns or expand operations. Many times, when I had just started, I needed to buy computers or software for a new project. For many small-business owners, credit cards serve as an accessible source of short-term financing, particularly during the early stages of growth.
If access to credit shrinks, fewer businesses will get off the ground. Small-business growth slows. That isn’t just a challenge for business owners. It’s a challenge for communities that depend on small businesses to create jobs and investment.
Opportunity requires access.
Indiana’s economy grows when more people can participate in it. That means helping young adults establish credit. It means ensuring working families have access to credit when emergencies arise. And it means giving small businesses the ability to invest in themselves and their communities.
The proposed CARD Act would move us in the opposite direction. Rather than restricting access to credit, policymakers should focus on expanding financial opportunity and promoting responsible lending practices that help more Americans build stronger financial futures. For generations, access to credit has opened doors to homeownership, self-employment and economic mobility. Congress shouldn’t close those doors now.•
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Elliott, a Republican, was elected state treasurer in 2022.
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