Did credit card companies actually reduce the rate to 10% as Trump demanded?
In early January, Trump demanded that credit card interest rates be reduced to 10% within a year by January 20: Did the banks comply with this demand?
When millions of Americans checked their statements on January 20, expecting to see a historic drop in their credit card interest rates, the reality was very different. The promise of a 10% maximum interest rate, championed by President Donald Trump, generated high expectations. However, when the key date arrived, interest rates were barely budged. This raised an inevitable question: Did credit card companies actually comply with the presidential demand?
Trump had publicly stated that rates, which typically range between 20% and 30%, should be cut in half. His call aimed to ease the financial burden on working families. The announcement set January 20th as the start date, coinciding with the anniversary of its inauguration. The measure, at least in his rhetoric, seemed imminent.
“I haven't seen any press releases. Not a single whisper,” said Stephen Kates, a financial analyst at Bankrate, referring to the inaction in the banking market regarding a rate cut. “For anyone looking at their statement hoping it will drop from 20% to 10%, I wouldn't hold my breath.”
Average rates remain near 19.6%, very close to historic highs.
Far from backing down, Trump hardened his stance. On January 12, he declared that companies ignoring the cap would be “breaking the law.” However, other voices within Washington sent opposing signals. Republican leaders and officials in their own administration expressed reservations about the impact of such a low cap.
House Speaker Mike Johnson warned that a 10% cap could generate “negative side effects.”
Among them, restricting access to credit for people with low credit scores.
“It seems that not only are they ignoring it, but they are being told to ignore it from the highest levels of economic policy,” explained Mike Pierce, director of Protect Borrowers.
Days Later, Kevin Hassett, The director of the National Economic Council shifted the focus to a proposal for a special card for consumers with weak credit. “A change like this can't happen with just a tweet,” said Adam Rust,director of financial services at the Consumer Federation of America. He also pointed out that a mandatory cap would require congressional approval, which has not yet occurred. Several associations warned that a 10% limit would be “devastating for millions of families and small businesses” that rely on credit. They argue that the risk of default would justify higher rates. Total credit card debt in the United States reached $1.2 trillion in the third quarter of 2025. In just four years, it increased by 60%, according to an analysis by LendingTree. For banks, this reflects greater access to credit. For consumers, a growing burden.
An industry study even argues that a 10% cap would exclude those with a score below 740 from the market. That group includes between 175 and 190 million people.
“It's not a one-size-fits-all experience,” noted Lindsey Johnson, director of the Consumer Bankers Association.
Still, consumer advocates value the debate. Rust pointed out that the positive aspect is that it raises awareness about how many people are paying for their debt.
Managing your credit card and your debt doesn't depend on policies or disputes between the government and banking institutions; it depends solely on you. Of course, banks will never accept these kinds of measures, after they earn millions of dollars from people like you who don't learn how to use their cards responsibly and overuse them.