With a low interest credit card, People will shop more and Revenue of companies will rise.
With low interest rate, rewards or cash back will be beneficial for companies.. Most low interest credit cards will also require good to excellent credit. Low interest credit cards are great if you carry
a balance and need to keep the interest low.
Obviously credit cards were invented as ways for bakers to make money. But the interest rates on them are ridiculous now, and once you fall behind it can be almost impossible to recover from it. Especially young people who got the predatory credit cards in hopes of building their credit.
There are some credit card companies that do offer competitive rates, but others commonly charge rates that are much too high. Many people do not realize fully how much money they are wasting on interest charges on these cards with such high interest. There should be a cap as to how much interest can be legitimately be charged. I'm sure the credit card companies will say they have to charge high amounts to cover those who default, but that is a whole other story, and something should be done about that, too. Perhaps if there were more care taken when giving out credit cards and they weren't given to bad credit risks, the interest rates could be lower for the people who play by the rules and pay their bills.
The company would have a better chance of getting paid if the interest were lower. People get behind because they don't have money, usually. If you add high interest rates, it becomes nearly impossible to repay the debt, and if it is already on a credit report, there is little reason to even try.
As it stands, most people who have credit cards do not use them wisely or well. Most people use them to leave far beyond their means. Lowering the rates would only increase and encourage that sort of irresponsible behavior. People need to learn the value of waiting to pay cash, or even skipping purchases that are not necessary completely.