Trump's Proposed 10% Credit Card Rate Cap Faces Pushback

Deep News01-15

As the U.S. President promotes a plan to cap credit card annual percentage rates (APR) at 10%, lenders such as Capital One (COF) are warning that the move would severely restrict credit availability and potentially force borrowers toward higher-cost alternatives. According to data from the prominent financial services platform LendingTree, the average promotional APR for new credit cards in the U.S. is hovering around 24% through late 2025 into early 2026, placing it near the highest levels in recorded history. Even when including accounts that pay their balances in full and incur no interest, the average posted rate for commercial bank credit card plans remains strikingly high at approximately 21%, as indicated by Federal Reserve data. Analysts point out that the current market pricing structure reflects a combination of elevated bank funding costs and significant premiums for potential recession and default risks.

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