On January 10, President Trump announced on his social platform, “Truth Social,” that he is calling for a one-year interest-rate cap on US credit cards starting January 20, 2026, with a maximum rate of 10%. He framed the move as a major affordability measure aimed at protecting Americans from what he described as predatory practices by card issuers.
In the post, Trump sharply criticized credit card companies for charging interest rates of 20% to 30% or even higher, and accused the Biden administration of previously allowing such practices to continue. He declared, “We will no longer let the American public get ripped off by credit card companies.”
However, the proposal immediately raised questions about how feasible it is. Analysts noted that setting a nationwide interest-rate cap would require congressional approval. Although bipartisan lawmakers have introduced similar legislation in the past, none has succeeded. Democratic Senator Elizabeth Warren criticized the call as meaningless without legislative backing. The financial industry has also pushed back. Well-known investor Bill Ackman warned that such a move could lead issuers to cancel large numbers of credit cards, potentially pushing consumers toward illegal lenders that charge even higher rates.
So far, the White House has not provided details on how the policy would be implemented, and the major card-issuing banks have not commented.
Credit card companies are able to offer such lucrative welcome bonuses and ongoing card perks because some people carry large balances and pay them substantial interest. If that interest income gets capped, card issuers will almost certainly cut those extra benefits, shut down customers who are not profitable for them, and reduce their costs — including groups like us who play the points-and-miles game. So everyone should be prepared, hahaha.
