The credit card industry kicked into high gear over the weekend after President Donald Trump called for a 10% interest rate cap in a social media post. That reflects a promise he made on the campaign trail and is consistent with two bills introduced in Congress (one in the Senate, the other in the House) — though neither of those bills has seen any additional action since being submitted to their respective committees in early 2025.
While we now have more questions than answers, here’s what you need to know about this development.
Friday night social media posts
The topic came up again Friday night when President Trump published a post on his Truth Social platform that included the following:
“As President of the United States, I am calling for a one-year cap on credit card interest rates at 10%, effective January 20, 2026.”
The post did not detail the mechanism for implementing such a proposal, and no additional information has been shared as of the date of publication. It’s also a very compressed implementation timeline, with less than two weeks until the “effective” date.
Speaking aboard Air Force One over the weekend, President Trump noted that card issuers would be “violating the law” if they didn’t comply, although what that actually means for card-issuing banks remains to be seen.
While Federal Reserve data shows that U.S. households currently carry about $1.23 trillion in credit card debt, many have pointed out that interest rate caps could limit banks’ ability to lend, especially to individuals with poor credit.
A joint statement from banking trade groups stated the following:
“Evidence shows that a 10 percent interest rate cap would reduce the supply of credit and be devastating to the millions of American families and small business owners who rely on and value credit cards — the very consumers this proposal is designed to help.”
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A study by the Electronic Payments Alliance estimates that 82 to 88 percent of people, or about 175 to 190 million Americans, could lose access to credit because of such a cap.
TPG’s interest rate philosophy
One of the core tenets of TPG is that your credit card will never have a balance from one month to the next. By paying each monthly statement in full (on time), you’ll avoid interest charges entirely. These fees can easily exceed the value of any rewards you can earn, so it’s crucial to spend within your means on your card.
That’s why it’s crucial to understand the ins and outs of credit before opening any new credit card product. You can start with our beginner’s guide to credit cards, then delve deeper with the following stories to help you build your knowledge:
If you do find yourself in credit card debt, there are a number of strategies you can use to get back on track. You might even qualify for a balance transfer card from another bank. For a small fee, you can pay off the balance interest-free over a period of time.
bottom line
President Trump has once again called for a 10% cap on credit card interest rates, a move that could have a huge impact on the credit card industry and Americans’ finances. However, the full details of how the proposal will come into effect remain to be seen.
Stay tuned to TPG as we will provide comprehensive coverage of this topic as more information becomes available.
