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Trump Sets One-Year 10% Cap on Credit-Card Rates With Jan. 20 Deadline

Experts warn of tighter credit under a legally uncertain plan.

Overview

  • Analysts say lenders would pull back from higher‑risk borrowers, pushing some consumers toward informal loans.
  • Banco Base’s Gabriela Siller warned banks could call balances or cut lines, worsening already elevated delinquency.
  • Card rewards and promotions would likely be pared back, and one economist proposed a 30% ceiling as a less disruptive benchmark.
  • Specialists questioned whether the White House can impose the cap without Congress and predicted organized industry opposition.
  • Bank and payments stocks fell as markets priced regulatory risk, with Capital One down about 7% and Visa and Mastercard off roughly 3%, while average card APRs near 20%–21% underscore margin pressure under a 10% limit.