Colorado credit card holders could maximize travel benefits as changes to interest rates considered

The financial industry is looking for clarity after President Trump's order to cap credit card interest rates to 10% for a year. The idea has drawn bipartisan support and could save consumers $100 billion per year in interest payments, but the banking industry warns it could backfire and hurt consumers.

The president gave companies until last Tuesday to lower those rates. However, many banks and card issuers have not changed their rates.

CBS Colorado looked into how to maximize credit card points and rewards, as this is ongoing. Point Me is a website that helps travelers maximize their credit card points.

Tiffany Funk, the cofounder of Point Me, believes the 10% cap would result in credit card companies restricting who they offer credit cards to.

"We could see account closures entirely, where they could just say, 'this is now due immediately, or we're selling this credit card debt to another company.' Even if it's something that sounds, on the surface, like it could be a good idea, there are very complicated economic levers," said Funk.

She believes costs will be more expensive for consumers who lost access to credit card rewards, and people will turn to using riskier loans like payday loans, which have higher rates.

"Those become the kinds of options available if you're capping interest rates in other places," said Funk. "Ultimately, it would be more expensive for consumers across the board in every way. You'd lose access to a lot of rewards and a lot of the great things that we're all enjoying when it comes to travel cards or points cards."

Funk said many people have credit card points, but don't know how to use them. With Point Me, you just create an account, log in, see what trips are available with your points, and book your travel. Funk said the site offers deals six to 12 times the value, compared to redeeming points for cash back.

"We can show you that you actually have a lot more purchasing power than you realized," said Funk.

Funk said if you have good credit and can pay your balance in full every month, you'd benefit from having a travel credit card.

She recommends choosing the right credit card for you and considering all the perks and what makes the most sense for you. Different cards will also have different interest rates, some higher and some lower.

"The reason why we do that is knowing what you want to do with your points is the first step in making sure you have the right points, and in really maximizing your earnings. You really need different points if you want to go to the Caribbean versus if you want to go to Europe," said Funk.

She added, the kinds of travel you want to do can help inform you what points work best for you.

"Is it that you want to be able to take a certain dream trip, or you have a safari in mind, or you have a cruise in mind. That's different than if it's, 'my parents are getting older, and I might need to, at the drop of a hat, fly across the country.' And I want to have an emergency fund of points that I can use domestically, that can also be different," said Funk.

Funk said you can also see what flights other people are getting and other deals people are getting from their home airport or any airport you choose.

"Which I think is helpful, because sometimes you're deciding, should I get that Chase Card? Should I get that Amex card? Which is the better deal for me? So being able to match it up with the destinations you want to go to," said Funk.

Funk also said the beginning of the year is the time to look at your credit card situation. Look at the points you're earning and set goals for the year. Now is also the best time of year to book for your spring break and summer travel plans.