Trump floated a 10% credit card interest rate cap. Here's what that could mean for consumers.

January 13, 2026

TL;DR

President Trump proposed capping credit card interest rates at 10% for one year.
A 10% cap could save consumers an estimated $100 billion annually in interest payments.
Financial experts and the banking industry warn that a cap could restrict credit access for consumers with low credit scores.
Reduced credit for subprime consumers could negatively impact overall consumer spending and economic growth.
Some analysts suggest credit card companies might reduce rewards programs or increase annual fees instead of cutting off customers.
The profitability of the credit card business and revenue streams from sources like interchange fees are cited as reasons why issuers might absorb a rate cut.
The authority of the President to unilaterally impose such a cap is questioned, with legislation being a more likely path.
Existing legislation like the Credit Card Accountability Responsibility and Disclosure Act of 2009 has some consumer protections but does not cap rates.

Continue reading the original article