> At a Glance
> – President Trump wants 10% cap on credit card interest rates
> – Could save Americans $100 billion annually
> – Industry warns of reduced access to credit
> – Why it matters: Your credit card rates could drop from 20-30% to 10% if implemented
President Trump wants to cap credit card interest rates at 10%, a move that could save Americans $100 billion annually but faces immediate opposition from banks and credit card companies.
The Proposal
Trump announced Friday night he wants a one-year cap on credit card interest rates, hoping it would take effect January 20. The president was unclear whether this would happen through executive action or legislation.
Sen. Roger Marshall said he spoke with Trump and will work on legislation with the president’s “full support.”
Industry Pushback
Banks and credit card companies strongly oppose the plan, warning it would hurt consumers by:
- Reducing access to credit
- Curtailing credit lines
- Driving people to alternatives like payday loans
The American Bankers Association claimed the cap would “only drive consumers toward less regulated, more costly alternatives.”
The Numbers
Current credit card statistics:
| Metric | Current | After 10% Cap |
|---|---|---|
| Interest rates | 19-30% | 10% |
| Americans with cards | 195 million | Same |
| Annual interest paid | $160 billion | $60 billion |
| Savings | – | $100 billion |
Political Support
The idea has bipartisan backing:
- Sens. Bernie Sanders and Josh Hawley proposed 10% cap for five years
- Reps. Alexandria Ocasio-Cortez and Anna Paulina Luna introduced similar bills
Key Takeaways
- 10% cap could save $100 billion annually
- Industry warns of reduced credit access
- Plan has bipartisan political support
- Implementation method unclear
- Would affect 195 million cardholders
The proposal reverses Trump’s campaign-friendly relationship with banks, who donated heavily to his 2024 campaign.
