Trump Backs Off Lower Credit Card Rates

Another view ...

Trump's 10% credit card cap deadline is here. Will card companies comply?
www.cbsnews.com

... President Trump had set Jan. 20 as a deadline for credit card companies to lower their interest rates to 10% for one year. Now that the date has arrived, most banks and card issuers have largely kept their rates unchanged, while also pushing back against an idea that they say lacks key policy details necessary for them to comply.

Mr. Trump announced the cap on Jan. 9, giving banks and issuers just 11 days to meet his demand. In his Truth Social post announcing the proposal, he said he wanted to ensure that Americans wouldn't get "'ripped off' by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more, which festered unimpeded during the Sleepy Joe Biden Administration."

The interest rate cap has drawn bipartisan support from some lawmakers, including Sen. Elizabeth Warren, a Democrat from Massachusetts, and Sen. Josh Hawley, a Republican from Missouri. If enacted, the proposal could save consumers $100 billion per year in reduced interest payments, but the banking industry warns that it could backfire because issuers would be forced to reduce credit access to millions of consumers. ...

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#11 | Posted by DarkVader at 2026-01-24 02:01 PM
It's one of his few good ideas.

It's not "his" idea and, like most "populist" ideas, it's a bad one:

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The interest rate cap has drawn bipartisan support from some lawmakers, including Sen. Elizabeth Warren, a Democrat from Massachusetts, and Sen. Josh Hawley, a Republican from Missouri. If enacted, the proposal could save consumers $100 billion per year in reduced interest payments...
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Financial institutions and insurance companies set the rates on their products according to risk involved - it's a part of 'risk mitigation' strategies - that's why credit ratings exist to begin with. Better credit rating usually affords better (lower) interest rates charged, and/or other benefits / incentives made available.

That's how financial markets work - "To each according to their credit rating."

Government trying to restrict rates or charges simply distort the market and usually result in less credit available ("debanking"?!), higher fees or private "loan sharking" and lower economic activity.

For example, to accommodate politicians, banks can issue a 10% credit card, but charge an annual fee, and/or limit them to a certain segment of customers (presumably, with higher credits scores) in which case there will be no real "savings" - some banks, have already done that:

www.cbsnews.com - Bank of America may introduce credit card with 10% APR - 2026-01-23

|------- Bank of America is weighing whether to launch a new credit card that would comply with President Trump's push to temporarily cap card interest rates at 10%...

Bank of America already offers credit cards with initial average percentage rates below 10%. For example, its no-frills BankAmericard offers consumers a 0% introductory APR for 18 months. Once that period ends, however, the APR rises to between 14.5% and 24%, depending on the cardholder's credit score. ...

The banking industry has criticized Mr. Trump's proposed cap, saying it could hurt consumers by reducing their access to credit and steering them toward riskier lending products. Reduced consumer spending would cut into economic growth...

Bilt, a financial technology company that offers credit card rewards for customers who pay their rent and mortgage payments on time...
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IOW, mostly you will get a 10% CC if you don't ever pay interest on your CC... pretty much what you have now.

There are always exceptions, but the rule of thumb is: if you have to look at the interest rate on your CC, you can't afford it. CCs are for convenience and streamlining of expenses only.
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