On Friday, Jan. 9, President Trump shared a message on Truth Social calling for a credit card interest rate cap starting Jan. 20, 2026 — just 11 days after posting. His proposal would cap rates at 10%, a promise he promoted during his 2024 campaign.
While the idea of capping credit card interest rates has garnered bipartisan support in the past, some experts and industry groups warn of its potential impact on borrowers with lower credit scores.
Not only would implementing a large-scale cap on all credit card interest rates within a short window be incredibly difficult, but there’s also no immediate legal authority to do so. The most likely path would be through Congress passing legislation, which hasn’t happened and is unlikely to be completed by the Jan. 20 deadline.
CNBC Select covers what you need to know about Trump’s proposed credit card interest rate cap, alongside options to consider under tighter credit conditions.
How a 10% rate cap could affect consumers
Per Trump’s Truth Social post, the potential interest rate cap would last only one year. After this temporary cut, card issuers would then be able to restore rates to current levels. Consumers could comfortably take on new or more debt at 10% interest, only to be worse off when rates reset to 20% or higher.
This rate cap could also have some pretty negative consequences for those with lower credit scores. One reason banks are able to lend credit to riskier borrowers is that they can charge higher interest rates to recoup losses. If interest rates are capped, banks could stop offering credit products to those with poor credit scores, potentially forcing consumers to turn to less secure or more expensive options. We could also see a reduction in credit card benefits and rewards, along with an increase in credit card fees to help offset banks’ losses.
It’s unclear exactly how Trump intends to enforce the proposed rate cap and what will happen once Jan. 20 arrives.
Other options if credit gets tighter
If the proposed credit card rate cap comes to fruition, or if you’re simply looking for ways to access more funds, here are some alternatives to credit cards:
HELOCs
CMG Financial Home Equity
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Loan types
Home equity loan and HELOC
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Minimum credit score
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Maximum loan-to-value
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Home equity loan limits
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HELOC draw amount
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Terms
Home equity loans: 10 to 30 years. HELOC: 20 years
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Availability
Available in all 50 states
Pros
- Quick access to funds
- High LTV
- Flexible repayment period
- Low credit requirements
Cons
- Current rates not available online
- High draw minimum
Personal loans
If you don’t own a home or would prefer your funds in a lump sum as opposed to a revolving line of credit, consider a personal loan. Personal loans typically come with extra costs, like origination or administrative fees, but many are accessible to those with lower credit scores. Avant offers a straightforward online application and can provide funding as early as the next business day if you’re approved.
Avant Personal Loans
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Annual percentage rate (APR)
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Loan amounts
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Terms
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Credit needed
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Origination fee
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Early payoff penalty
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Late fee
Up to $25 after a 10-day grace period
Click here to see if you prequalify for a personal loan offer. Terms apply.
Pros
- Lends to applicants with poor credit
- No early payoff fee
- Can prequalify with a soft credit check
- Funding often available next day
- Late-payment grace period of 10 days
Cons
- Origination fee
- Potentially high interest
- No autopay discount
- No direct payments to creditors for debt consolidation
- No co-signers
Debit cards
While debit cards carry more risk than credit cards, they’re more accessible and can help you better control your spending. Debit cards pull directly from your bank account, so it’s harder to go into debt. However, they typically don’t offer the same fraud protections or dispute rights as credit cards. The Discover® Cashback Debit Checking doesn’t require a minimum deposit to open, and you can earn 1% cash back on up to $3,000 in debit card purchases each month.
Discover® Cashback Debit Checking
Information about the Discover® Cashback Debit Checking has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication
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Monthly maintenance fee
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Minimum deposit to open
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Minimum balance
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Rewards
1% cash back on up to $3,000 in debit card purchases each month. See website for details by clicking “Learn More”.
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Free ATM network
60,000+ Allpoint® and MoneyPass® ATMs
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ATM fee reimbursement
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Overdraft fee
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Mobile check deposit
Pros
- Top-rated mobile app
- No minimum deposit to open an account
- 1% cash back on up to $3,000 in debit card purchases each month
- Opt-in to free overdraft protection
- No overdraft fees
Cons
- No reimbursement for out-of-network ATM fees
Pro tip: You can pair this card with a Discover account
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Annual Percentage Yield (APY)
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
