The bank card trade 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 within the Senate and the opposite within the Home) — although neither of those payments has seen any extra motion since being referred to the chambers’ respective committees in early 2025.
Whereas we have now extra questions than solutions proper now, this is what you want to learn about this improvement.
Social media put up on Friday evening
The subject resurfaced with a Friday evening put up from President Trump on his Fact Social platform, which included the next:
“Efficient January 20, 2026, I, as President of the USA, 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 extra 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 Drive One over the weekend, President Trump famous that card issuers would “be in violation of the regulation” in the event that they did not comply, although it stays to be seen what that really means for issuing banks.
Whereas Federal Reserve knowledge reveals that American households are actually carrying roughly $1.23 trillion in bank card debt, many observe that an rate of interest cap would possible prohibit banks’ potential to lend, particularly to much less creditworthy people.
A joint assertion from banking trade commerce teams famous the next:
“Proof reveals {that a} 10% rate of interest cap would cut back credit score availability and be devastating for thousands and 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 research from the Digital Funds Coalition estimates that 82% to 88% of individuals (or about 175 to 190 million Individuals) may lose entry to credit score with this sort of cap.
TPG’s philosophy on rates of interest
One in all TPG’s core rules is to by no means carry a stability in your bank cards from one month to the following. By paying each month-to-month assertion in full (and on time), you may keep away from curiosity prices totally. These charges can simply outweigh the worth of any rewards you possibly can 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 inexperienced persons information to bank 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 a number of methods you possibly can make use of to get again on observe. Chances are you’ll even be eligible for a stability switch card with one other financial institution. For a small charge, you can unlock a time period to pay down your stability with no curiosity.
Backside line
President Trump has renewed his requires a ten% cap on bank card rates of interest, a transfer that would have huge implications for the bank card trade and Individuals’ funds. Nonetheless, the total 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 obtainable.
