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Trump's Jan. 20 credit card cap: What interest rates could look like?
Donald Trump is calling for a one-year cap on credit card interest rates at 10%. He called for the cap to be effective on Jan. 20.
US President Donald Trump on Friday announced he is calling for a one-year cap on credit card interest rates at 10%, effective January 20, 2026, which would mark the first anniversary of his second term in office.
In a post on Truth Social, he wrote, “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. 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. Make America Great Again.”
Trump did not explain how the proposed cap would be implemented or enforced, leaving open whether it would require executive action, regulatory changes through agencies such as the Consumer Financial Protection Bureau, or legislation passed by Congress.
It is also unclear whether credit card companies would comply voluntarily, or what steps the administration could take to compel changes to existing rates.
Also Read: Trump wears 'Bobblehead Trump' lapel pin; supporters ask 'Where can I get one'
Current average credit card interest rates
Current average credit card interest rates stand at around 22.35% for new offers and 20.97%–22.83% for existing accounts, as per WalletHub and Federal Reserve data. Some subprime credit cards charge interest rates as high as 36%.
The idea of a 10% cap is not new. Sen. Bernie Sanders, an independent who caucuses with Democrats, and Republican Sen. Josh Hawley have previously introduced bipartisan legislation to cap credit card interest rates at 10% for five years. In the House, Rep. Alexandria Ocasio-Cortez and Rep. Anna Paulina Luna have also put forward similar legislation.
(With inputs from Reuters)
