Trump Wants One-Year Cap On Credit Card Interest Rates

President Donald Trump announced Friday that he wants to impose a temporary federal cap on credit card interest rates.

In a Truth Social post, Trump said his administration will move to limit credit card interest rates to 10% for one year, starting Jan. 20, 2026. He added that the proposal is a direct response to what he described as widespread abuse by credit card companies charging interest rates as high as 20% to 30%, and sometimes more.

“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!” Trump wrote. “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%.”

The president noted that effective date would mark the one-year anniversary of what he called his “historic and very successful” return to office. He said the proposal is part of a broader effort to rein in corporate practices he argues harm working Americans.

The average credit card interest rate on U.S. accounts that carry balances stands at about 19.65% as of early January 2026. Rates climbed to a record-high 20.79% in August 2024 and have only modestly retreated since, remaining elevated by historical standards.

Other industry trackers place average Annual Percentage Rates even higher, generally in the 22% to 23% range depending on methodology. Some reports show interest rates on existing balances exceeding 22.8%, with new card offers averaging roughly 22.35%.

As credit card APRs remain near record highs, the Federal Reserve cut interest rates for the second time last year in October, lowering its benchmark rate by a quarter point to a target range of 3.75% to 4.00%. The Federal Open Market Committee approved the move after a two-day meeting, following a similar quarter-point reduction in September.