Access to credit plays a crucial role in the home furnishings retail industry, empowering millions of American families to make important investments in their homes. As the leading voice for home furnishings retailers, the Home Furnishings Association (HFA) is raising strong concerns about a proposed federal policy that would cap credit card annual percentage rates (APRs) at 10%. While the intent may be to protect consumers, the unintended consequences of this measure would be severe, limiting consumer access to credit and disrupting retail sales nationwide.
HFA strongly opposes the proposed 10% APR cap on credit cards. Consumer financing is vital to both the home furnishings industry and the households we serve. In 2025, a substantial share of home furnishings sales came from credit cards and promotional financing plans. This blanket measure would cut tens of millions of families off from the safe, regulated financing they rely on to furnish their homes. It would also impact retailers by reducing consumer spending power.
Consumer financing options help families afford essential purchases for their home. A hard APR cap would severely limit the availability of these options. Consumers with credit scores below 740 would be hit the hardest, further reducing their access to credit and disproportionately affecting credit-building households.
Rather than blunt price controls that restrict access to credit, HFA advocates for transparent loan terms and responsible financing solutions that enable retailers to give consumers purchase options that meet their budget needs.
Our industry thrives when families have the tools to create safe, comfortable, and functional living spaces. Policies that unintentionally narrow access to financing options undermine that goal. HFA will continue to work with policymakers to support credit access strategies that are fair, flexible, and empower both consumers and the retailers who serve them. We urge legislators to consider the real-world impact this proposal would have on everyday families and the broader retail economy.
