The bank card business went into excessive gear over the weekend following a social media put up from President Donald Trump calling for a ten% cap on rates of interest. This mirrors a pledge he made on the marketing campaign path, and it additionally aligns with a pair of proposed payments in Congress (one in the Senate and the opposite in the House) — although neither of those payments has seen any further motion since being referred to the chambers’ respective committees in early 2025.
Whereas we’ve got extra questions than solutions proper now, here is what it is advisable find out about this improvement.
Social media put up on Friday evening
The subject resurfaced with a Friday evening put up from President Trump on his Reality Social platform, which included the next:
“Efficient January 20, 2026, I, as President of the US, am calling for a one 12 months cap on Credit score Card Curiosity Charges of 10%.”
The put up did not element the mechanics of implementing such a proposal, and no further data has been shared as of the publication date. It is also a really compressed timeline for implementation, with lower than two weeks till the “efficient” date.
In remarks aboard Air Pressure One over the weekend, President Trump famous that card issuers would “be in violation of the legislation” in the event that they did not comply, although it stays to be seen what that truly means for issuing banks.
Whereas Federal Reserve information exhibits that American households at the moment are carrying roughly $1.23 trillion in credit card debt, many be aware that an rate of interest cap would doubtless limit banks’ potential to lend, particularly to much less creditworthy people.
A joint assertion from banking business commerce teams famous the next:
“Proof exhibits {that a} 10% rate of interest cap would scale back credit score availability and be devastating for hundreds of thousands of American households and small enterprise homeowners who depend on and worth their bank cards, the very shoppers this proposal intends to assist.”
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One study from the Digital Funds Coalition estimates that 82% to 88% of individuals (or about 175 to 190 million People) may lose entry to credit score with such a cap.
TPG’s philosophy on rates of interest
Considered one of TPG’s core ideas is to never carry a balance in your bank cards from one month to the subsequent. By paying each month-to-month assertion in full (and on time), you will keep away from curiosity fees completely. These charges can simply outweigh the worth of any rewards you may earn, so it is vital to spend inside your means in your playing cards.
That is why it is essential to know the ins and outs of credit score earlier than opening any new bank card product. You can begin with our beginners guide to credit cards after which dig deeper with the next tales to assist construct your data:
In the event you do end up in bank card debt, there are several strategies you can employ to get again on observe. Chances are you’ll even be eligible for a balance transfer card with one other financial institution. For a small payment, you would unlock a time period to pay down your steadiness with no curiosity.
Backside line
President Trump has renewed his requires a ten% cap on bank card rates of interest, a transfer that might have huge implications for the bank card business and People’ funds. Nevertheless, the complete particulars of how such a proposal would take impact stay to be seen.
Keep tuned to TPG, as we’ll have full protection of this subject as extra data turns into out there.
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