Trump Pushes for 10% Cap on Credit Card Interest Rates
NEW YORK, January 13, 2026 – President Donald Trump has revived a campaign pledge by proposing a one-year, 10% cap on credit card interest rates, aiming to save Americans tens of billions of dollars annually. The move, announced via Truth Social, has drawn immediate backlash from the banking industry, which argues it could harm consumers by reducing credit access.
Proposal Details
Trump stated in his post that he wants the cap in place by January 20, marking one year since he took office. He criticized credit card companies for charging rates of 20 to 30%, claiming they are ripping off consumers. The proposal could potentially be implemented through executive action or legislation, with Republican Senator Roger Marshall expressing support and willingness to introduce a bill. Researchers estimate that capping rates at 10% would save Americans about $100 billion in interest each year, as credit card companies would still remain profitable despite scaled-back rewards and perks.
Currently, Americans carry about $1.23 trillion in credit card debt, with average interest rates between 19.65% and 21.5%. About 195 million people in the United States have credit cards, and they assessed $160 billion in interest charges in 2024. The administration has been friendly to the industry until now, approving deals like Capital One’s merger with Discover in early 2025.
Industry Opposition and Potential Impacts
Banking groups, including the American Bankers Association, oppose the cap, warning it could drive consumers toward less regulated alternatives like payday loans or pawnshops. They argue that lower rates would curtail credit lines, hurting poor people during economic uncertainty. Credit unions also voiced concerns, stating the cap would reduce access to credit for millions, including teachers, small business owners, and farmers, potentially harming the broader economy.
Historically, interest rate caps have led to credit cutoffs for high-risk borrowers, as seen in Arkansas. Trump’s proposal mirrors plans from Senators Bernie Sanders and Josh Hawley, as well as Representatives Alexandria Ocasio-Cortez and Anna Paulina Luna. Sanders criticized Trump’s deregulation of banks, which allowed higher fees.
Key Facts / Stats
| Metric | Details |
|---|---|
| Estimated Annual Savings | $100 billion in interest for consumers if rates capped at 10% |
| Current U.S. Credit Card Debt | $1.23 trillion |
| Average Interest Rates | 19.65% to 21.5% |
| People with Credit Cards | 195 million |
| Annual Interest Charges (2024) | $160 billion |
| Debtors with Balances Over a Year | 61% (up from 53% in late 2024) |
Frequently Asked Questions
What is the proposed cap on credit card interest rates?
The proposal calls for a one-year limit of 10% on credit card interest rates, potentially starting January 20, 2026, to reduce consumer costs.
How would this affect consumers?
It could save billions in interest but might lead to reduced credit limits or access for some, especially high-risk borrowers, according to industry critics.
What do banks say about the proposal?
Banks argue the cap would hurt consumers by pushing them to riskier alternatives and reducing available credit during economic challenges.
Has this been done before?
Similar caps exist for military members (36%) and credit unions (18%), but a broad 10% cap on all credit cards is unprecedented.