Millions of Americans could face lower credit card interest rates if a proposal backed by Donald Trump and Senator Elizabeth Warren returns to Congress. Warren has said she is ready to work with the president on legislation that would cap credit card interest rates at 10%, well below the current average.
Warren Says Bill Is Ready To Go
Speaking to CBS News, Warren said she was prepared to move forward with legislation after Democrats’ strong performance in the midterm elections. She pointed to Trump’s previous support for a 10% credit card rate cap and said the legislation was already prepared.
Trump has also said he wants to work with Democrats following the election. The proposal could give Congress another chance to consider a policy that previously failed to advance.
Credit Card Rates Are Far Above 10%
Federal Reserve data shows that the average interest rate for credit cards issued by commercial banks reached 22.36% in the third quarter of 2026. That is more than twice the proposed 10% ceiling.
Trump first called for a cap in January, arguing that Americans were being charged excessive rates by credit card companies. Under the proposal, consumers carrying balances could face much lower interest charges if the legislation became law.
The exact savings would depend on the size of a person’s balance and the terms of their existing account.
Trump Previously Backed A 10% Cap
Trump called for credit card interest rates to be capped at 10% earlier this year. He argued that rates of 20%, 30% and higher were unfair to consumers. The proposal was also discussed between Trump and Warren, but the legislation did not advance before a January 20 voting deadline.
The latest comments from Warren suggest the proposal could return to the political agenda.
Banks Have Opposed The Proposal
The banking industry has strongly opposed a 10% ceiling. Five banking groups, including the American Bankers Association and Consumer Bankers Association, issued a joint statement arguing that the policy could reduce access to credit.
The groups said a 10% cap could make credit cards less available to millions of families and small businesses that rely on them. Their argument is that lenders could respond to a lower interest ceiling by reducing credit availability or changing other account terms.
What A 10% Cap Could Mean For Cardholders
A 10% ceiling would represent a major change from current average credit card rates. For example, a borrower with a credit card balance would face a much lower annual interest charge if their existing rate fell from around 22% to 10%.
The actual savings would depend on the balance, repayment schedule and whether the proposed legislation applied to an existing account. The proposal has not yet become law, so current credit card rates remain unchanged.
Proposal Still Needs Congressional Approval
Despite renewed support from Warren, a 10% credit card rate cap is still only a proposal. Congress would need to pass legislation before any nationwide cap could take effect, and the final terms could differ from the original plan.
For now, Americans carrying credit card debt should not assume their interest rate will automatically fall to 10%. The renewed discussion does, though, put credit card borrowing costs back into focus as lawmakers consider measures aimed at reducing the cost of household debt.
