Summary
President Donald Trump plans to limit credit card interest rates to 10% for one year, starting on his inauguration date, January 20. He argues that high interest rates are unfair to Americans, but experts caution that the plan may reduce access to credit. Trump supports legislation in Congress to address these issues, but the plan requires cooperation from lawmakers to succeed.
Key Facts
- President Trump announced a plan to cap credit card interest rates at 10% for one year.
- The cap is set to begin on January 20, the day of Trump’s inauguration.
- The average interest rate on credit cards was about 22.83% as of August.
- U.S. credit card debt reached $1.23 trillion in September.
- Bipartisan support exists for lowering credit card costs, but experts warn the cap might limit credit access for some consumers.
- Congress would need to pass a law for the interest rate cap to be legal; Trump supports related bipartisan bills.
- One pertinent bill, the "Credit Card Competition Act," aims to stop hidden swipe fees imposed by companies like Visa and Mastercard.
