Interest rate caps are regulations that place an upper limit on the interest rate that can be charged on loans. We estimate the impact of rate cap laws on consumers’ financial well-being with a difference-in-difference analysis based on staggered implementation of rate cap laws. We combine a credit bureau’s detailed data for almost 600,000 consumers between 2016 and 2019 with a database of alternative credit that tracks credit accounts of consumers with primarily subprime alternative credit providers. We find that rate cap laws result in a credit score increase of 0.153 points every quarter. However, consumers with initial credit score in the range 300-660 experience a decline in credit score of about 1.7 points per quarter. Following rate cap laws, unbanked consumers and alternative financing users experience credit score declines of 0.54 points per quarter and 1.545 points per quarter, respectively. We do not find evidence of a decline in credit usage, suggesting there may be substitution across different forms of credit. However, chargeoffs, delinquencies, foreclosures, and payment due increase for consumers in the alternative credit database.