ArmInfo. Trump to Cap US Credit Card Interest Rates to 10% for a Year. "Effective January 20, 2026, I, as President of the United States, am announcing a one-year cap on credit card interest rates of 10%," Donald Trump wrote on Truth Social.
Capping credit card interest rates at 10% would save Americans $100 billion annually, but banks are warning of the risk of reducing access to credit, according to Axios.
Trump announced the idea during his campaign this year and confirmed his intention to implement the cap on January 20 if the proposal is supported by legislation. Similar legislation was proposed by Senators Bernie Sanders and Josh Hawley, but it failed to gain support in Congress. Senator Elizabeth Warren said she discussed the possibility of advancing the bill with Trump.
According to an analysis by former CFPB official Brian Shear, capping the rate at 15% would save $48 billion, while loyalty programs and lending could be preserved. In 2024, the average credit card rate reached 25.2%, according to the CFPB, while for retail cards it was 31.3%. Meanwhile, the amount of interest accrued on credit cards increased to $160 billion over the year.
Critics of the proposal, including banking industry representatives, believe the rate cap will lead to the growth of less regulated and more expensive alternative loans. Economists also express concerns about the potential side effects of price controls. The likelihood of the bill's passage is considered low.
