Credit card interest rates across the US have climbed sharply over the past few years. Data from Macro Trends shows a steep rise between February 2022 and August 2023, when average rates jumped from about 16.17 percent to roughly 22.7 percent.
The increases did not stop there. By the following year, average interest rates had climbed past 23.37 percent, before easing slightly. As of November 2025, rates were still high, sitting at around 22.3 percent.
In a recent post shared on Truth Social, the president said he wants to introduce a temporary cap that would limit credit card interest rates to 10 percent for a full year, framing the move as a way to protect consumers from excessive charges.
What has Trump said?
Trump 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!”
He went on to add: “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.”
The comments echo promises Trump made during his 2024 campaign, when he told voters that his administration would take action to temporarily limit credit card interest rates.
How a 10 percent interest cap could backfire
While lower interest rates may sound appealing to consumers, major banking groups have warned that a strict cap could end up harming the very people it is meant to help.
The Bank Policy Institute, American Bankers Association, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America said in a joint statement: “We share the president’s goal of helping Americans access more affordable credit.”
“At the same time, evidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small business owners who rely on and value their credit cards, the very consumers this proposal intends to help.”
Put simply, banks may respond to a 10 percent cap by tightening lending rules, which could make it harder for people with lower credit scores or limited financial history to qualify for credit cards at all.
