Trump's 10% Credit Card Interest Rate Cap (Here’s What Happens Next)

Introduction to Trump's 10% Credit Card Interest Rate Cap Proposal00:00

What if starting January 20th, credit card interest rates were capped at 10% for one year? Trump announced calling for a 10% cap starting January 20th. This is not a legal order or executive order. Anyone can call for anything.

Trump's Announcement and Sources00:32

Trump posted on Truth Social: effective January 20th, 2026, as president, calling for a one-year cap on credit card interest rates of 10%. January 20th coincides with the one-year anniversary of something historic and successful. According to Reuters, Trump repeated a campaign promise for a one-year 10% cap but did not outline enforcement. Critics say it requires Congress to pass a law. Research using resources confirms Congress is needed. Elizabeth Warren said Trump's call is meaningless without a bill passed by Congress.

Credit Card Debt Statistics01:31

Americans hold record $1.23 trillion in credit card debt; roughly half of cardholders carry a balance. New York Fed data for Q3 2025: total outstanding debt $5.1 trillion, including credit cards $1.23 trillion (rose by $24 billion in Q3), student loans $1.65 trillion, auto loans $1.66 trillion, other $0.5 trillion. Average APRs over 20%, so massive interest costs on this debt, not all on 0% balance loans.

Vanderbilt Study on Potential Savings and Impacts02:31

Vanderbilt study: 10% cap would save $100 billion per year in interest. To maintain profitability for customers with FICO scores below 760, banks would reduce rewards by up to $27 billion annually.