Trump calls for one year cap on credit card interest rates at 10%

[BumRushDaShow]

Source: Yahoo! Finance/Reuters

Fri, January 9, 2026 at 8:47 p.m. EST 1 min read


WASHINGTON, Jan 9 (Reuters) - U.S. President Donald Trump said on Friday ​he was calling for a one-year cap on ‌credit card interest rates at 10% starting January 20 but he ‌did not provide details on how he planned to make companies comply. Trump also made the pledge during the campaign for the 2024 elections that he won.

There have been some ⁠legislative efforts in ‌Congress to pursue such a proposal but they are yet to become law. Democratic lawmakers have ‍criticized Trump, a Republican, for not having delivered on that campaign pledge.

"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%," Trump wrote on Truth Social, without providing more details. "Please be informed that we will no longer let the American Public be 'ripped off' by Credit Card Companies," Trump added.

The White House ⁠did not immediately respond to ​a request for comment on details ​of the call from Trump, but said on social media that the president was capping ‍the rates.

Read more: https://ca.finance.yahoo.com/news/trump-calls-one-cap-credit-014715119.html

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Got a breaking banner on this. He may go all night just rambling.

[Klarkashton]

1. Sign over the bar "free beer tomorrow"

[mdbl]

2. He's just trying to increase the repuglican pac donations from the credit card carriers. It will never pass.

They need it for the midterms.

[Klarkashton]

4. He been floating an answer to every gripe.

[Prairie Gates]

21. One of our local trolls is going to be very concerned about why "We Dems" didn't think of this first

Coming to GD some time tomorrow, no doubt.

[bucolic_frolic]

3. Republicans hated Joe Biden's student loan programs

How is this any different?

Love GOP support for free markets!

Get the government off our backs

Darwinism for me by the GOP except at election time

[moonshinegnomie]

5. if this actually takes effect

all that will happen is credit card companies will start cancelling the cars of people with balances or else cutting their creit lines dramatically

considering over 7% of credit cards are either late or in default there is no practical way for the credit card companies to operate at 10%.

[Norrrm]

7. "considering"... Trump doesn't.

[Multichromatic]

23. Wrong!

Credit card rates on cards with "good" credit was as low as 6.99, 7.99, 8.99, and 9.99 percent on those old green American Express cards in the 1990's and early 2000's Through about 2010 I had 9.99, 11.99, and 13.49 percent interest rate credit cards.

Then the banks got super greedy. Over the next ten years. Now all my cards have 17.99 to 25.99 percent interest with a good credit score.

In my area the Credit Unions used to legally have their credit card interest capped at 15 percent. I don't know when that regulation ended.

The banks can absolutely make a profit with a 10 percent interest rate on cards. They already did it in the past. They didn't go bankrupt!

[Mark.b2]

6. I wonder how many millions will then lose their credit card accounts....

They have high-interest credit cards because they are higher risk.

A lot of people shouldnt have credit cards. Credit card debt is the most common form of debt involved in personal bankruptcy. >90% of that gets written off.

Price controls—in this case, in the form of a limit on interest—limit the supply of whatever is having its price restricted. If he limited the price of a Big Mac to $1, it’s an awesome deal for the consumer…if he can find one.

[moonshinegnomie]

9. my guess is most of them

its not financially viable for a credit card company to charge only 10% when the default/late payment rate is 7% or more. the wouldnt be able to operate.

the result will be huge credit card cancellation by the comapnies or else credit cards will go away and morph into american express type cards that have to be paid off every month

[Mark.b2]

12. Good points....

In the long-run, it may help the people who, frankly, cant handle them.

I was a finance major in the 80s, and during my jr and sr years, I volunteered for a single-parent college student org providing finance counseling. It wasnt that I was a fincial genius; we used pre-program system, sort of like the Dave Ramsey program nowadays. I knew credit cards were a problem for many people, but I had no idea just how big. It was nothing for some to have 5-6 cards of varying lmits, most maxed out.

[Multichromatic]

24. What's past is prologue

My retail customers bragged in 1997 about having a 7.99 percent AMEX card and a 9.99 percent Visa card. They loved how the monthly payments were SO low because of the great interest rates they had.

I know some people getting low interest rates is different than everyone getting a capped 10 percent interest rate... but banks definitely won't go broke over this.

Also, California has a 10 percent cap on interest for personal loan. Though that rule seems to have lots of possible exemptions.

I'm not trying to pick on you... It just seems like nobody remembers credit card interest used to be MUCH lower in the past.

[BumRushDaShow]

25. What has happened since the Raygun '80s, was banking deregulation

I.e., a number of banks that actually host/issue those credit cards, will domicile/charter their card entities in states with no cap or a high cap. The most common state is South Dakota, where you will see this -

Fact brief: Is South Dakota one of the friendliest states for credit card companies?

Yes.

South Dakota landed several major credit card companies after 1980 because of the state’s lack of laws restricting interest rates.

In the 1970s, credit card companies were losing money with every swipe because most states had laws that capped interest rates.

The lack of a usury law in South Dakota combined with a Supreme Court ruling that said companies could use the state’s laws where the company was headquartered led to a financial boom. Even if a card was used in another state, South Dakota laws governed interest rates.

(snip)

The linked article lists 3 big issuers - Wells Fargo, Citi and First PREMIER Bank - who established their cards there (and many small orgs with cards in their own names, are actually issued by banks like those, through an agreement).

The unanimous SCOTUS ruling that established this -

Marquette Nat. Bank v. First of Omaha Svc. Corp., 439 U.S. 299 (1978)

(snip)

MR. JUSTICE BRENNAN delivered the opinion of the Court.

The question for decision is whether the National Bank Act, Rev.Stat. § 5197, as amended, 12 U.S. C § 5, [Footnote 1] authorizes a national bank based in one State to charge its out-of-state credit-card customers an interest rate on unpaid balances allowed by its home State, when that rate is greater than that permitted by the State of the bank's nonresident customers. The Minnesota Supreme Court held that the bank is allowed by § 85 to charge the higher rate. 262 N.W.2d 358 (1977). We affirm.

(snip)

So this means a card holder needs to REALLY research where their card issuer's credit card unit is domiciled, otherwise years after some low "introductory interest rate", that rate can suddenly change to the max rate of the state where the card is issued from, not from the state where the holder resides.

[moonshinegnomie]

31. the will just wholesalfe cancel credit cards

only the very highest credit scores will be able to get them.
credit score under 700-750? nope. no card for you
with a 7% default/late payment rate a bank cant provide a card at 10% to any but the most credit worth borrowers.

[70sEraVet]

8. I don't know that a US President has the power to do that.

But he might be able to declare that any interest paid on credit cards OVER 10% would be tax deductible!
But, that might smell like helping out the 'little people'.

[moonshinegnomie]

10. that requires congress

[70sEraVet]

11. I'm sure you're right about that.

[Ol Janx Spirit]

15. The little people can't take advantage of tax deductions. They are taking the standard deduction and getting money...

...back. They aren't itemizing.

A tax credit of some kind maybe....

[RedWhiteBlueIsRacist]

13. Before the mid-terms, Trump will promise us all a new car and a Trump phone.

Then after the election, poof!

[Bristlecone]

14. Trump then called for a Chihuahua in every pot

White House staff then proceeded to message that chickens make for poor eating and the president is delivering on his agenda towards a stronger America by reducing the Mexican dog population.

[Ol Janx Spirit]

16. This is what he does: he says it--expecting credit for it. And it is probably true more often than not...

..that people hear the proclamation and believe he meant it--or even did it.

I doubt seriously that there is any intention to follow through. It is so much easier just to lie about it when a lot of people are going to believe you anyway.

He lies like he breathes.

[JI7]

17. These are useless things just meant to get some headlines

but he isn't actually doing anything for these things to happen.

Anyone cam call for something. Where is the plan and process for it to actually happen.

[tonekat]

18. He spews a firehose of crazy every day

I know it's intentional to keep everyone off balance but I wish it would stop.

[Nigrum Cattus]

19. More smoke & mirrors - epstein,epstein,epstein

1) he can't force any credit card co. to do that
2) the interest is how they make their money
3) anyone with a credit card has already agreed to a certain rate
4) epstein, epstein, epstein

[Prairie Gates]

20. The Age of BIG GOVERNMENT, I guess

[SunSeeker]

22. The credit card companies would have to agree to do that and they won't.

Just like manufacturing companies never complied with his call to bring manufacturing back to the United States.

Trump is an idiot with no rational plan to do anything constructive for American people.

[Lovie777]

26. Credit Card Companies would have to cancel some people's cards.................

but consumers would still have to pay their balance (monthly) on each card.

It's going to create another chaotic issue.

[wolfie001]

29. Credit limits will plummet

[Raven123]

27. Sounds like he is in panic mode over the economy.

[wolfie001]

28. More socialism by the fat orange imbecile

Just to win over the astoundingly high % of stupid as fuck American voters. More Door Dash orders and trips to McDonalds for 10 months. This should go well.

[Hugin]

30. Hey while we're spouting populist pablum why not raise the minimum wage by ten percent for a year or until after the...

Midterms. Whichever comes first.

[oasis]

32. Desperado Don's Full-of-Shit Proclamations are

more annoying than the sight of his bloated carcass.

[RoseTrellis]

33. Thanks for posting this.

Reading up on this post, I found this LBN from you back in March.

https://www.democraticunderground.com/10143415421

"During his campaign, President Trump pledged to cap credit card interest rates at 10 percent. We're making that pledge more than a talking point by introducing legislation to protect working people from remaining trapped under mountains of debt," Ocasio-Cortez said in a press release. Newsweek reached out to Representatives Alexandria Ocasio-Cortez and Anna Paulina Luna for comment via email on Monday.”



Here’s the 2 bills that have been introduced in the House and Senate that have been sponsored by AOC, Bernie Sanders, Paula Luna and Josh Hawley

https://www.congress.gov/bill/119th-congress/senate-bill/381
https://www.congress.gov/bill/119th-congress/house-bill/1944

[flvegan]

34. Alright, whose check didn't clear? Chase? Discover, this your fault?

[delisen]

35. This is a silly 1 year tiny bandaid proposal.

Trump is coming up with a proposed fix for every issue he thinks is standing in the way of MAGA winning the midterm elections.

A crazy emperor will say any crazy thing to stay in the palace.

[Raftergirl]

36. I had to get a new CC because my airline card switched from Barclays to Citi. The switch will be automatic sometime

in the next few months, but switching before December 31, 2025 earned 80k miles, if one charged $1000 in the first 3 months. So, I was proactive and did the switch myself. Already qualified for the 80k miles.

But, I had a credit limit of $36k and Citi only gave me $14k. I’m not happy even though I have never come close to using all my credit. At most my monthly is no more than $5k and normally between $1500-$2k. I put everything I can on this card. My credit score is 869 and interest rate on card is 19.4%.

Of course, I pay my card in full each month, so the interest rate doesn’t really matter to me.

I’m sure my credit limit will be slowly increased and if not I will call them in a few month and ask for it to be increased.

[CTyankee]

37. I never use a credit card any more, just a debit card when I need to order something online.

If I don't have the money, I don't buy things.