Major change could soon be coming to US credit cards as Donald Trump vows to not let Americans be ‘ripped off’

Donald Trump has once again promised a major change that could affect millions of Americans, saying he wants to drastically cut credit card interest rates so people are no longer being taken advantage of by big companies. He made a similar promise during his 2024 campaign, and now he says he is ready to act on it.

Credit card interest rates in the United States have been extremely high for years. Between early 2022 and mid-2023, average rates jumped sharply, rising from just over 16 percent to nearly 23 percent.

Instead of leveling off, rates climbed even higher the following year, reaching more than 23 percent. While they have dipped slightly since then, they were still around 22.3 percent as of November 2025. For many Americans carrying credit card debt, these rates make it very hard to get ahead financially.

Trump says he wants to change that quickly. In a recent post on Truth Social, he announced that he wants to cap credit card interest rates at just 10 percent for a period of 12 months. He argued that Americans have been “ripped off” by credit card companies charging 20 to 30 percent interest, and he blamed the situation on the previous administration. He framed the proposal as a way to improve affordability and give people some financial relief.

According to Trump, the cap would take effect on January 20, 2026. He pointed out that the date would line up with the one-year anniversary of what he described as his successful return to the White House. He also reminded supporters that he talked about the same idea during his 2024 campaign, when he promised a temporary cap on credit card interest rates.

While the proposal sounds appealing to many consumers, especially those struggling with debt, banks and financial industry groups warn that it could have serious unintended consequences. Several major banking organizations released a joint statement saying they support the goal of making credit more affordable, but believe a 10 percent cap would actually do more harm than good.

According to these groups, such a low cap would likely lead banks to pull back on lending. They say credit card companies would become much more cautious about who they approve, which could mean millions of Americans lose access to credit cards altogether. Small business owners and families who rely on credit cards for emergencies or everyday expenses could be hit especially hard.

The banks also warned that if traditional credit becomes harder to access, people may turn to less regulated and more expensive alternatives, such as payday loans or other high-risk lenders. These options often come with even higher costs and fewer consumer protections.

In simple terms, while lower interest rates sound helpful, a strict cap could make it harder for people with lower credit scores or lower incomes to qualify for credit at all. Instead of paying less interest, many working-class Americans could find themselves locked out of the system entirely or pushed toward worse financial options.