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Trump credit card interest cap: How much money you can save, what to expect? All details here
President Donald Trump announced on Truth Social that he was ‘calling for a one year cap on Credit Card Interest Rates of 10%’.
President Donald Trump made a huge announcement regarding credit card interest rates, which is set to impact most Americans once it comes to pass. On Friday, Trump took to Truth Social to announce that he was ‘calling for a one year cap on Credit Card Interest Rates of 10%'.
"Please be informed that we will no longer let the American Public be "ripped off" by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more, which festered unimpeded during the Sleepy Joe Biden Administration," Trump said in his post.
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“AFFORDABILITY! Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%. Coincidentally, the January 20th date will coincide with the one year anniversary of the historic and very successful Trump Administration. Thank you for your attention to this matter,” he added, signing off with ‘Make America Great Again.’
The move was largely lauded on X, with one profile even calling the president an ‘American hero’. However, no such law exists yet, which means this would have to go through Congress before it becomes a law. Interestingly, there is already a Bill that has been moved in the Senate. Titled ‘10 Percent Credit Card Interest Rate Cap Act’, it was brought forth by Democrat Party veteran Senator Bernie Sanders, and Republican Senator Josh Hawley.
Here's how much money Trump's move could help save, and how it will affect Americans.
All you need to know about the credit card interest cap
The credit card interest cap could save Americans up to about $100 billion in interest costs. This is based on a Vanderbilt University study from 2025, which explored how much money could have been saved if Trump's interest rate cap was instituted in 2024.
The study found that banks could still make a profit from most customers if they cut down on some of the rewards.
A lower rate of interest would also help in faster debt repayment and would improve affordability. However, on the flip side, it might lead to lenders becoming stricter, meaning Americans with low credit scores could be barred from a line of credit. Higher annual or penalty fees might be put in place to make up for lost profits.
