Trump’s Deadline for 10% Cap on Credit Cards Is Here—Have Banks Complied?

In an effort to deliver on his affordability promises, President Donald Trump announced on Jan. 9 that he would be giving banks and issuers 11 days to meet his demand of capping credit card interest rates at 10% for one year. 

His Jan. 20 deadline has now come and gone, and despite drawing bipartisan support from lawmakers, like Democratic Sen. Elizabeth Warren and Republican Sen. Josh Hawley, most banks and credit unions have kept their rates unchanged. 

A joint statement from the Bank Policy Institute, American Bankers Association, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America applauded the president’s goal of “helping Americans access more affordable credit,” but disagreed that this would be the best approach.  

“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,” the statement said in part. 

So what happens next? And which financial institutions have actually fallen in line with the president’s plan?

Current interest rates and why there hasn’t been movement

Interest rates are on the decline, partly due to the Federal Reserve’s rate cuts throughout 2025. 

At the end of 2025, the average APR stood at 19.7%, a full percentage point lower than the record high set in August 2024, according to Bankrate.

Of course, that number is nearly double the rate that is being proposed by Trump, who lamented that Americans were being “ripped off” by credit card companies on Truth Social.

So, if rates are already on the decline, why haven’t more issuers and banks followed through with the president’s proposal?

In short—because they don’t have to. 

“Credit card companies have to stay in business, and they’re not going to be keen to lower profitability,” explains Melanie Musson, insurance and finance expert at Clearsurance.com.

“If they lower interest rates, things are going to have to change. You can’t keep up with your current model when the income no longer flows. Everything has to change.”

How lower interest rates would change things for the better 

At the outset, lowering interest rates would be a welcome relief for anyone who is carrying debt. 

As of the second quarter of 2025, American adults held a collective credit card debt exceeding $1.21 trillion. Individually, this translates to an approximate average balance of $5,595 per cardholder.

So let’s do the math. If you owe $5,595 and can’t pay your credit card bill in full, a 19.7% interest rate would add about $91.86 in interest for the month. If that rate were lowered to 10%, the interest charge would drop to roughly $46.63. That’s a difference of $45.23 in just one month—money that goes straight to interest instead of paying down your balance.

Clearly, there is an upside.

“Those who have debt would experience relief because of the interest rates,” explains Musson. “They may even be able to pay back debt more quickly because their payments would go more towards the principal.”

But is lowering the interest rate really the answer?

Here’s the rub: Experts and economists agree that the interest rate isn’t necessarily the problem right now. It’s more that with prices sky high, people are being forced to either live without or live beyond their means to afford essentials like housing and food. 

And beyond that, if a cap were to be put in place, the very people who this could help may be counted out of the game entirely.

“Banks and credit card companies have to price in the risk of credit card holders,” explains Mayra Rodriguez Valladares, a bank and capital markets risk consultant and managing principal at MRV Associates.

“Rates are set above prevailing interest rates to take into account the credit card holders' probability of default. If interest rates were to be capped, then credit card companies and banks will start to turn down more applications.”

In addition, she warns that a cap could also reduce the amount that existing credit card holders can use on their credit cards. “Either action would make it hard for Americans to use credit cards to fulfill some of their needs like buying groceries and paying rent,” she adds. 

With the deadline passed, it remains to be seen what Trump’s next move will be. So far, none of the major credit card carriers have brought their rates down and there's also no applicable federal law that limits the interest rate that can be charged by a credit card company, according to the Consumer Financial Protection Bureau. 

Both Rodriguez Valladares and Musson say that a rate cap would likely require approval from Congress.