Credit Card Interest Rate Cap: Where the 10% Proposal Stands
Is there a 10% cap on credit card interest? Where the proposal stands in Congress, what average APRs are now, how much a cap would save, and what to do instead.
Short answer: no 10% cap on credit card interest is in effect. President Trump revived the idea in January 2026, and bills exist in both the House and Senate, but none has passed and the White House has reportedly backed away from it. Meanwhile, the average card rate is still above 21%. Here is where things stand and how to cut your interest cost without waiting for Washington.
What the proposal would do
The idea is simple: limit the annual percentage rate (APR) that card issuers can charge to 10%. President Trump first pitched it in the 2024 campaign and called for it again on January 9, 2026, describing it as a temporary, one-year cap. The Senate's 10% Credit Card Interest Rate Cap Act and a House version would make it law.
Where it stands now (November 2026)
- Senate bill: still listed as "Introduced," meaning no committee vote.
- House bill: referred to the Financial Services Committee, with no further action.
- White House: according to a Bloomberg report summarized by PYMNTS, it has backed away from pushing the cap.
- Campaign trail: candidates from both parties promoted caps ahead of the November 2026 midterms, so the idea may return in the next Congress.
The proposal is popular with voters: a May 2026 Harvard CAPS-Harris poll found 72% support for a one-year 10% cap. Banks strongly oppose it. JPMorgan CEO Jamie Dimon said in January that a cap "would remove credit from 80% of Americans."
What credit cards charge today
The Federal Reserve's measure of the average credit card rate at commercial banks was 21.19% in August 2026, up from 20.94% in May. The record in that series is about 22% (August 2024). In November 2021 it was around 15%.
Rates stay high partly because the Fed has been raising its benchmark rate again. It lifted rates in September 2026 for the first time in three years and held them at 3.75% to 4.00% in October. Most card APRs are variable and move with the prime rate, so each Fed hike flows straight into your card balance. More in how credit card interest works.
How much would a 10% cap save?
Take a $6,000 balance with $200 monthly payments:
| At 21.19% APR | At 10% APR | |
|---|---|---|
| Interest in the first month | about $106 | about $50 |
| Months to pay off | about 43 | about 35 |
| Total interest paid | about $2,621 | about $933 |
That gap, roughly $1,700 on a typical balance, is why the idea polls so well.
The arguments on each side
Supporters say high rates trap families in debt and that issuers earn record profits. Senator Elizabeth Warren estimates borrowers pay an extra $368 million in interest for every day a cap is not in place.
Opponents, mainly banks, say a cap would force issuers to close accounts or cut limits for people with lower credit scores, who are riskier to lend to. Citi's Gonzalo Luchetti warned it "would have massive ripple effects through the retail industry." Some analysts expect that if any cap does pass, it would be set higher than 10%.
Lower your rate now, without a law
- Call your issuer and ask. If you pay on time, ask for a lower APR. It works more often than people expect.
- Use a 0% balance transfer card. Intro periods of up to 21 months are available for good credit, usually with a 3% to 5% transfer fee. Compare it with a loan in balance transfer vs personal loan.
- Refinance with a personal loan. The average personal loan APR was about 12.4% in early November 2026 for a 700 credit score, far below card rates.
- Pick a payoff order. The avalanche method targets your highest-rate card first and saves the most.
- Improve your score. Better credit scores unlock lower rates on every product.
Frequently asked questions
Is there a legal limit on credit card interest rates today?
There is no federal cap on the APR a national bank can charge on a credit card. Some states have usury limits, but large card issuers are generally allowed to charge the rate permitted in the state where the bank is based, which is why many are located in states without caps. Credit unions are the exception: federal credit unions are generally limited to 18% APR.
Would a 10% cap apply to my existing balance?
It would depend on how the final law was written. The current bills target the rate charged going forward, but none has passed, so there are no rules yet on existing balances or how quickly issuers would have to adjust.
Why don't credit card rates fall when the Fed is not cutting?
Most cards charge the prime rate plus a fixed margin. In 2026 the Fed has been raising rates, which lifts the prime rate, and issuers have also widened their margins in recent years. Both push the average APR up.
What is a good credit card APR?
Anything well below the national average of about 21% is good. People with excellent credit can find cards in the high teens, and many cards offer 0% intro periods. Credit union cards are often the cheapest ongoing option.
Key takeaways
- No federal 10% card rate cap exists; the bills in Congress have not advanced.
- The average card APR was 21.19% in August 2026, near record highs.
- A cap would save a typical borrower over $1,500, but banks warn it would reduce access to credit.
- Balance transfers, personal loans and simply asking your issuer can cut your rate today.
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