Posted on 01/20/2026 9:31:23 AM PST by Miami Rebel
President Donald Trump a week ago told the credit card industry it had until Jan. 20 to comply with his demand for a 10% cap on interest rates. With just days to go, consumer groups, politicians, and bankers alike remain unclear on what the White House has planned and whether Trump even remains serious about the idea. So far, the White House has not provided any detail about what will happen to credit card companies that don’t lower card rates. White House Press Secretary Karoline Leavitt said the president has “an expectation” that credit card companies will accede to his demand that they cap interest rates on credit cards at 10%. “I don’t have a specific consequence to outline for you but certainly this is an expectation and frankly a demand that the president has made,” she said Friday.
(Excerpt) Read more at abcnews.go.com ...
“And today, the highest credit card interest rates (APRs) are typically found on cards for people with poor credit, reaching near 36%,”
I have 830 give or take and never have a balance. They still have me at 29%. That’s about what they all are now even with good credit.
I charge all my groceries, fuel and most other things to my AMX Blue Cash rewards card. I pay a $90 annual fee. Pay it off every month. For that I get 6% back on all grocery and drug stores.
3% back on all fuel purchases.
1% back on everything else.
I call them once every few months and they credit my next bill in CASH.
I have not paid interest in 15 or 20 years.
Funny thing is, I have top a tier credit rating and I am sure the rates I pay factor in their losses from marginal customers... Credit should earned, not given away. Of course then the banks will accused of discrimination.
Spending less on imported consumer goods hurts the US economy how? Answer: it doesn’t.
Maybe I’m wrong, but this demand sounded more like a warning to credit card companies to remember why we have regulations on lending such as usury. And, there’s certainly examples of lenders charging the financially foolish and/or desperate persons excessively. I’d argue that ‘enabling a solution to subprime’ is risky in and of itself, and if the risk requires 36%, or higher, rate…. the lender isn’t helping the consumer with their ‘solution.’
I am not an elite flyer but have racked up ~150K miles on the awards card. It is worth some serious flight hours..
Personal Consumption Expenditures is the largest component of Gross Domestic Product, making up two thirds of the US economy.
Only 11% of PCE is of foreign-origin products.
I had a couple different REWARDS cards over the years.
I had a Starwood hotel(before Marriott)card. I found they made it very difficult to get a free room EVER.
I think I got rid of it after getting a weekend for half price somewhere.
I had a USAIR card once too. I don’t think I ever got a free flight. I think I used it on a discounted trip to Vegas.
This American Express Blue Cash Rewards has been the best thing I have found IF you pay off the balance monthly.
It is simple too. Once the money gets over $50 they credit the next bill. You just have to call or email them.
Also, twice they informed me when someone had stolen my number. Pretty sure the one was the Thai restaurant down the street. Somebody made a charge in Bangkok the day after I had picked up food to go at the place. I got an email from AMX the next day. I have never gone back there since.
Same here. But they keep wanting me to up my limit of credit
Sorry but Im not aware that a POTUS has the authority to dictate interest rates on credit cards.
But assuming he does, then....
I do agree that 20 percent rates are excessive and “should” be brought down.
It would appear that there may be a lack of genuine competition in the marketplace, for rates to be that high.
Competition would bring the rates down.
Either way on both of the above, if rates are lowered then the banks will simply have to restrict who gets credit cards and/or at least lower credit limits.
Neither of these natural market reactions will be popular with the banks, of course.
And neither of them will be popular with the millions of impacted citizens who lose “their” credit cards (or have their credit limits lowered).
Economics theory indicates that finding legitimate ways of increasing competition would work better. (However, I’m not sure quite how that could be accomplished? Ideas welcome...)
If you reliably pay your card payment or more, your rate should decline as you become a safer borrower. That doesn’t happen. You can have a 850 credit score and your cards still charge 25%
Yep, rates should be a reflection of your credit score, an 830 should be 10% and the rate climbs as the score decreases.
This may cause a short term pain for consumers, but long term it’s a net plus for the economy. More dollars purchasing actual goods and services rather than servicing debt.
I am up there with you.
My credit is great…because I don’t want it or need it. LOL
I remember struggling in my late 20s and my Dad told me that exact thing.
I used to work at a bank. They did a lot of things that the people who did not “play by the rules” thought were unfair. 99% of them were based on the customer’s actions. The bank didn’t “impose” late fees or penalties, or higher rates. The customers’ actions did.
A credit union pays no Federal Tax. The banking center bank does. That is your 8-10%.
Trump: Do I have to tell you clowns everything ...10% top limit .,, you can do lower.
What are the excuses the banks have for loan shark rates?
I bet the illegals are defaulting just like home loans and car loans and we the law abiding people are forced to pay for the bad loans.
“...never have a balance...”
Then make a deal. They make little money if you pay off at first call. Ask them to lower the APR and you might not pay it off each time so they can make some scratch. You are not the customer they want to see.
wy69
Mine finally has passed 800, and I think my interest rate is 31%. I'm not quite sure because I never had to pay it. I always paid the balance in full. So, effectively, the interest is 0% for people who pay in full and on time.
I haven’t flown since Covid, but did rack up some miles before. I originally got the card when I was making overseas flights. Two overseas flights got me a round trip conus flight.
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