Sat, 17 Jan 2026

Sat, 17 Jan 2026 Trump's proposed credit card cap spotlights Americans' debt. Would it help?

President Trump's proposal to cap credit card interest rates at 10% - an idea with bipartisan support - received swift backlash from bank executives.

* Selena Cooper, a 26-year-old former paralegal, lost her job due to the US government shutdown and is now struggling with $6,000 in credit card debt.
* Credit card interest rates have been rising in recent years, averaging around 22% as of November, up from 13% a decade ago.
* Trump has proposed capping credit card rates at 10% for one year, but bank executives are pushing back, saying it would erode consumers' access to credit and reduce their revenue.
* Analysts and economists agree that a rate cap may not benefit consumers as much as claimed by Trump and lawmakers, and could even lead to banks cutting credit limits or closing riskier accounts.
* Some experts suggest that banks could respond to the proposal by limiting how much they lend to people with lower credit scores or by raising annual fees and late fees.
* A recent Vanderbilt University study found that Americans would save around $100bn a year in interest costs if a 10% rate cap were implemented.
* The idea of capping credit card rates has been floating in legislative circles for years, but faces hurdles ahead, including opposition from bank executives and challenges getting Congress on board.
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