{"id":129440,"date":"2026-01-13T17:34:00","date_gmt":"2026-01-13T12:04:00","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=129440"},"modified":"2026-01-13T02:43:31","modified_gmt":"2026-01-12T21:13:31","slug":"trump-proposes-new-10pc-credit-card-interest-cap","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2026\/01\/13\/trump-proposes-new-10pc-credit-card-interest-cap\/","title":{"rendered":"Trump Proposes New 10% Credit Card Interest Cap: Full Impact Analysis"},"content":{"rendered":"\n<p><strong>WASHINGTON, D.C.-<\/strong> <a href=\"https:\/\/aviationa2z.com\/index.php\/tag\/donald-trump\/\">President Donald Trump<\/a> has announced plans to impose a one year cap on US credit card interest rates at 10%, effective January 20, 2026.<\/p>\n\n\n\n<p>The proposal targets interest charges that currently average above 20% and, in many cases, reach 25% to 30% or more.<\/p>\n\n\n\n<p>The proposal could lower borrowing costs for some consumers but raises unresolved questions about legal authority, credit access, consumer debt behavior, and the sustainability of credit card rewards programs.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/man-woman-using-laptop-online-shopping-with-credit-card-1024x683.webp\" alt=\"Trump Proposes New 10% Credit Card Interest Cap: Full Impact Analysis\" class=\"wp-image-109709\" srcset=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/man-woman-using-laptop-online-shopping-with-credit-card-1024x683.webp 1024w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/man-woman-using-laptop-online-shopping-with-credit-card-300x200.webp 300w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/man-woman-using-laptop-online-shopping-with-credit-card-768x512.webp 768w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/man-woman-using-laptop-online-shopping-with-credit-card-50x33.webp 50w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/man-woman-using-laptop-online-shopping-with-credit-card-1600x1067.webp 1600w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/man-woman-using-laptop-online-shopping-with-credit-card-1536x1024.webp 1536w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/man-woman-using-laptop-online-shopping-with-credit-card-2048x1365.webp 2048w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/man-woman-using-laptop-online-shopping-with-credit-card-150x100.webp 150w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/man-woman-using-laptop-online-shopping-with-credit-card-450x300.webp 450w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/man-woman-using-laptop-online-shopping-with-credit-card-1200x800.webp 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Photo: Freepik<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-trump-proposed-10-interest-rate-cap\">Trump Proposed 10% Interest Rate Cap<\/h2>\n\n\n\n<p>On January 9, 2026, President Trump posted on his Truth Social platform stating that <a href=\"https:\/\/aviationa2z.com\/?s=credit+card\">credit card<\/a> companies should cap interest rates at 10% for one year starting January 20, 2026.<\/p>\n\n\n\n<p>He criticized current rates, stating that consumers are often charged between 20% and 30% or higher, and framed the proposal as an affordability measure.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Donald J. Trump Truth Social Post 08:10 PM EST 01.09.26 <a href=\"https:\/\/t.co\/47SQ03yMeo\">pic.twitter.com\/47SQ03yMeo<\/a><\/p>&mdash; Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) <a href=\"https:\/\/twitter.com\/TrumpDailyPosts\/status\/2009827222002250161?ref_src=twsrc%5Etfw\">January 10, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The language of the post indicated that he was \u201ccalling for\u201d credit card companies to comply, which initially suggested a voluntary action rather than a binding mandate.<\/p>\n\n\n\n<p>On January 11, 2026, Trump stated during remarks aboard <a href=\"https:\/\/aviationa2z.com\/index.php\/tag\/us-air-force-one\/\">Air Force One<\/a> that credit card companies would be \u201cin violation of the law\u201d if they failed to comply.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">President Trump said credit card companies must lower interest rates to 10% by Jan 20 or face legal consequences.<br><br>He added that the industry \u201cabuses the public\u201d and said he will not allow it to continue.<br><br>Overnight market action:<br>\u2022 <a href=\"https:\/\/twitter.com\/search?q=%24COF&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$COF<\/a> -4%<br>\u2022 <a href=\"https:\/\/twitter.com\/search?q=%24AXP&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$AXP<\/a> -3%<br>\u2022 <a href=\"https:\/\/twitter.com\/search?q=%24SOFI&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$SOFI<\/a> -2%<br>\u2022 <a href=\"https:\/\/twitter.com\/search?q=%24JPM&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$JPM<\/a> -1% <a href=\"https:\/\/t.co\/xtF58OMJZ8\">pic.twitter.com\/xtF58OMJZ8<\/a><\/p>&mdash; Shay Boloor (@StockSavvyShay) <a href=\"https:\/\/twitter.com\/StockSavvyShay\/status\/2010533903774498928?ref_src=twsrc%5Etfw\">January 12, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>So far, policymakers have not issued an executive order, federal regulation, or legislation to establish enforcement mechanisms or clarify the legal basis for the cap.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2024\/02\/image-4-1024x683.png\" alt=\"Trump Proposes New 10% Credit Card Interest Cap: Full Impact Analysis\" class=\"wp-image-56030\" srcset=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2024\/02\/image-4-1024x683.png 1024w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2024\/02\/image-4-300x200.png 300w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2024\/02\/image-4-768x512.png 768w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2024\/02\/image-4-1600x1067.png 1600w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2024\/02\/image-4-1536x1024.png 1536w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2024\/02\/image-4-2048x1365.png 2048w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2024\/02\/image-4-750x500.png 750w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2024\/02\/image-4-1140x760.png 1140w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Photo: Business Wire<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-credit-card-issuers-generate-revenue\">How Credit Card Issuers Generate Revenue<\/h2>\n\n\n\n<p>Credit card issuers earn revenue through 3 primary sources: <strong>interchange fees paid by merchants<\/strong>, <strong>interest charges paid by cardholders who carry balances<\/strong>, and <strong>annual fees charged on certain cards<\/strong>.<\/p>\n\n\n\n<p>Among these, interest charges are generally the highest-margin revenue stream.<\/p>\n\n\n\n<p>Credit card interest applies only when a cardholder carries a balance beyond the payment due date. Consumers who pay their full statement balance each month do not incur interest charges.<\/p>\n\n\n\n<p>Borrowers who finance balances are currently subject to average annual percentage rates above 20%, with many accounts charging 25% to 30% or more.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-consumer-impact-and-bipartisan\">Consumer Impact and Bipartisan<\/h4>\n\n\n\n<p>Capping interest rates at 10% would reduce interest expenses for consumers who carry balances during the one-year period.<\/p>\n\n\n\n<p>Proposals to limit credit card interest rates have historically received bipartisan support and are not a new policy concept.<\/p>\n\n\n\n<p>However, the short duration of the cap raises concerns. If a lower rate is viewed as beneficial, limiting it to one year creates uncertainty for both consumers and lenders. The proposed timeframe also coincides with the US midterm election cycle.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-credit-access-and-debt-risk\">Credit Access and Debt Risk<\/h4>\n\n\n\n<p>Reducing interest revenue may lead credit card issuers to tighten lending standards. Consumers with weaker credit profiles may face reduced access to credit, lower limits, or account closures, as lending at a capped 10% rate may not sufficiently compensate for default risk.<\/p>\n\n\n\n<p>There is also a risk that some consumers may accumulate larger balances during the capped period due to lower interest costs.<\/p>\n\n\n\n<p>If interest rates return to current levels after one year, those balances could then accrue interest at rates closer to 25% to 30%, increasing long-term debt burdens.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"534\" src=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/04\/Best-Airline-Credit-Card-in-the-world-1024x534.webp\" alt=\"Best Airline Credit Card in the world\" class=\"wp-image-90214\" srcset=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/04\/Best-Airline-Credit-Card-in-the-world-1024x534.webp 1024w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/04\/Best-Airline-Credit-Card-in-the-world-300x156.webp 300w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/04\/Best-Airline-Credit-Card-in-the-world-768x401.webp 768w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/04\/Best-Airline-Credit-Card-in-the-world-50x26.webp 50w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/04\/Best-Airline-Credit-Card-in-the-world-1600x834.webp 1600w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/04\/Best-Airline-Credit-Card-in-the-world-1536x801.webp 1536w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/04\/Best-Airline-Credit-Card-in-the-world-2048x1068.webp 2048w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/04\/Best-Airline-Credit-Card-in-the-world-150x78.webp 150w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/04\/Best-Airline-Credit-Card-in-the-world-450x235.webp 450w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/04\/Best-Airline-Credit-Card-in-the-world-1200x626.webp 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Photo: American Express<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-effects-on-credit-card-rewards-and-airlines\">Effects on Credit Card Rewards and Airlines<\/h2>\n\n\n\n<p>Credit card rewards programs are supported by a cross-subsidized system. Interchange fees and annual fees contribute to funding, but interest charges play a central role in supporting large welcome bonuses, high spending multipliers, and premium card benefits.<\/p>\n\n\n\n<p>Interest paid by cardholders who carry balances effectively subsidizes the rewards earned by other cardholders.<\/p>\n\n\n\n<p>A sustained reduction in interest revenue would require issuers to reduce rewards, limit bonuses, or change card benefits.<\/p>\n\n\n\n<p>While the current proposal applies for only one year, any extension or permanent cap would significantly alter the rewards landscape.<\/p>\n\n\n\n<p>Airlines are also affected by these economics. Many airlines rely heavily on revenue from <a href=\"https:\/\/aviationa2z.com\/index.php\/tag\/co-branded-credit-cards\/\">co-branded credit card<\/a> partnerships, selling loyalty points to banks as a major profit driver.<\/p>\n\n\n\n<p>Reduced card issuer profitability would limit banks\u2019 ability to purchase points at current levels, directly affecting airline margins and loyalty program structures.<\/p>\n\n\n\n<p>According to <a href=\"https:\/\/onemileatatime.com\/news\/trump-cap-credit-card-interest-rates\/\" rel=\"nofollow\">OMAAT<\/a>, this dependence on credit card revenue has become a core component of airline financial performance.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"512\" src=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/American-Express-Airline-Chargeback-1024x512.webp\" alt=\"\" class=\"wp-image-106873\" srcset=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/American-Express-Airline-Chargeback-1024x512.webp 1024w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/American-Express-Airline-Chargeback-300x150.webp 300w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/American-Express-Airline-Chargeback-768x384.webp 768w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/American-Express-Airline-Chargeback-50x25.webp 50w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/American-Express-Airline-Chargeback-1600x800.webp 1600w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/American-Express-Airline-Chargeback-1536x768.webp 1536w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/American-Express-Airline-Chargeback-150x75.webp 150w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/American-Express-Airline-Chargeback-450x225.webp 450w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/American-Express-Airline-Chargeback-1200x600.webp 1200w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2025\/08\/American-Express-Airline-Chargeback.webp 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Photo: American Express<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\">Conclusion<\/h2>\n\n\n\n<p>President Trump\u2019s proposal to cap credit card interest rates at 10% for one year beginning January 20, 2026, would sharply reduce interest charges for some borrowers.<\/p>\n\n\n\n<p>At the same time, the absence of a defined enforcement framework and the temporary nature of the cap introduce uncertainty.<\/p>\n\n\n\n<p>Consumers with strong credit who carry balances may benefit in the short term, while higher-risk borrowers could face reduced access to credit.<\/p>\n\n\n\n<p>Declining interest-based revenue may also affect credit card rewards programs and airline partnerships.<\/p>\n\n\n\n<p>Stay tuned with us. Further, follow us on social media for the latest updates.<\/p>\n\n\n\n<p>Join us on\u00a0<a href=\"https:\/\/t.me\/s\/aviationa2z\" rel=\"nofollow\">Telegram Group\u00a0<\/a>for the Latest Aviation Updates. Subsequently, follow us on\u00a0<a href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMPLdrgsw_-jGAw?hl=en-IN&amp;gl=IN&amp;ceid=IN%3Aen\">Google News<\/a><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-aviation-a-2-z wp-block-embed-aviation-a-2-z\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"XDfHNzVzBq\"><a href=\"https:\/\/aviationa2z.com\/index.php\/2025\/12\/22\/best-travel-credit-cards-2025\/\">Top 10 Best Travel Credit Cards in the World in 2025<\/a><\/blockquote><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;Top 10 Best Travel Credit Cards in the World in 2025&#8221; &#8212; Aviation A2Z\" src=\"https:\/\/aviationa2z.com\/index.php\/2025\/12\/22\/best-travel-credit-cards-2025\/embed\/#?secret=1mc7kzW6NG#?secret=XDfHNzVzBq\" data-secret=\"XDfHNzVzBq\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>President Donald Trump has announced plans to impose a one year cap on US credit card interest rates at 10%, effective January 20, 2026.<\/p>\n","protected":false},"author":147,"featured_media":119968,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13569,6761,7307],"tags":[14450,11974,27380,27378,5493,26039],"class_list":{"0":"post-129440","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-credit-cards","8":"category-news","9":"category-usa-aviation-news","10":"tag-co-branded-credit-cards","11":"tag-credit-card","12":"tag-credit-card-annual-fee","13":"tag-credit-card-rewards","14":"tag-donald-trump","15":"tag-trump-tariffs"},"_links":{"self":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts\/129440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/users\/147"}],"replies":[{"embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/comments?post=129440"}],"version-history":[{"count":4,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts\/129440\/revisions"}],"predecessor-version":[{"id":129473,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts\/129440\/revisions\/129473"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/media\/119968"}],"wp:attachment":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/media?parent=129440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/categories?post=129440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/tags?post=129440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}