Credit Card Debt · Policy Tracker 2026
Is There a 10% Credit Card Interest Rate Cap? Where It Stands in 2026
A 10% cap on credit card APRs has bipartisan sponsors and a presidential endorsement, but it is not law. Here is what the bills would do, where they stand in Congress, the arguments on each side, and what you can do about a 22% APR today.
By DebtRoute Editorial Team · Updated October 2026 · Informational only — not legal or financial advice
No. As of October 22, 2026, there is no 10% federal cap on credit card interest. The Senate bill (S.381) and House bill (H.R.1944), both titled the 10 Percent Credit Card Interest Rate Cap Act, were introduced in 2025 and referred to committee, where Congress.gov shows no further action. President Trump called for a one-year 10% cap in January 2026, but a cap would need legislation or voluntary action by issuers. Card APRs averaged 22.15% on accounts assessed interest in Q2 2026, so if you carry a balance, the practical moves are a 0% balance transfer, a lower-rate consolidation loan or a nonprofit debt management plan.
Source: Congress.gov — S.381 All Info; Congress.gov — H.R.1944 All Info; Federal Reserve G.19 Consumer Credit
What the 10 Percent Credit Card Interest Rate Cap Act Would Do
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The Senate bill would amend the Truth in Lending Act so that the APR on a credit card “may not exceed 10 percentage points, inclusive of all finance charges.” It goes further than a simple rate ceiling:
- Fees can’t be used to get around the cap. Fees that aren’t finance charges may not be used to evade the limit, and their total may not exceed the finance charges assessed.
- Penalties for knowing violations. Charging above the cap would be a violation of the Act and a forfeiture of the entire interest on the obligation.
- A right to get money back. Cardholders could sue within two years to recover the interest, finance charges and fees paid.
- Stronger state laws survive. The bill does not preempt state laws that protect consumers more.
- It is temporary. The cap provisions would be repealed effective January 1, 2031.
Source: Congress.gov — Text of S.381
Where the Bills Stand in Congress
| Bill | Sponsor | Introduced | Latest action (per Congress.gov) |
|---|---|---|---|
| S.381 | Sen. Bernard Sanders (I-VT), with original cosponsor Sen. Josh Hawley (R-MO); 3 cosponsors in total | Feb. 4, 2025 | Read twice and referred to the Senate Committee on Banking, Housing, and Urban Affairs (Feb. 4, 2025) |
| H.R.1944 | Rep. Alexandria Ocasio-Cortez (D-NY) | Mar. 6, 2025 | Referred to the House Committee on Financial Services (Mar. 6, 2025) |
Source: Congress.gov — S.381; Congress.gov — H.R.1944
To become law, a bill must pass committee, pass both chambers and be signed by the President. Neither bill has had a committee vote, according to Congress.gov when we checked on October 22, 2026.
The January 2026 presidential call for a cap
In January 2026, President Trump called for a one-year 10% cap on credit card interest rates, saying he wanted it to begin January 20. NPR reported that it was unclear whether the President could impose a cap without Congress passing legislation, and that he had not said whether he would work with Congress, issue an executive order or take another route.
Source: NPR — Trump calls for a 10% cap on credit card interest rates (Jan. 12, 2026)
The Arguments For and Against a Cap
Supporters, including the bill’s bipartisan sponsors, argue that card rates have climbed far above other borrowing costs and that a cap would deliver immediate relief to households carrying balances. Federal Reserve data back up the size of the burden: the average APR on accounts assessed interest was 22.15% in Q2 2026, and card balances reached $1.26 trillion, according to the New York Fed.
Opponents, led by the banking industry, argue a cap would backfire. NPR reported that the Bank Policy Institute called a cap “devastating” for families and small businesses and said it would push consumers toward less regulated, more costly alternatives; the group has also said many cardholders who carry balances could lose credit lines or see them reduced.
Economists and policymakers disagree about how lenders would respond — whether through lower rates, fewer approvals, lower limits or higher fees — and that uncertainty is at the heart of the debate.
Source: Federal Reserve G.19; Federal Reserve Bank of New York — Q2 2026 Household Debt and Credit; NPR (Jan. 12, 2026)
Interest-Rate Caps That Already Exist
Rate caps aren’t new in U.S. lending. Federal credit unions face a statutory loan-rate limit of 15%, and the NCUA Board has kept a temporary 18% ceiling in place, most recently extending it on February 6, 2026 through September 10, 2027. Card balances you carry with a federal credit union are subject to that ceiling, which is one reason credit union cards can be a cheaper home for revolving debt.
Source: NCUA — Board extends loan interest rate ceiling (Feb. 6, 2026)
What You Can Do About a 22% APR Today
Waiting for Congress is the most expensive option. On a $6,580 balance — Experian’s 2026 average — 22.15% APR costs about $1,457 in interest over a year, or roughly $121 a month.
| Option | How it lowers your rate | Best for |
|---|---|---|
| 0% balance transfer card | Moves the balance to a 0% intro APR for a set period (transfer fee usually applies) | Good credit and a balance you can clear during the intro period |
| Debt consolidation loan | Replaces card APRs with one fixed-rate loan; commercial banks averaged 11.86% on 24-month personal loans in Q2 2026 | Fair to good credit and multiple cards |
| Credit union card or loan | Federal credit unions are limited to an 18% ceiling | Anyone who can join a credit union |
| Call your issuer | Ask for a lower APR or a hardship program — it costs nothing to ask | Long-time customers with on-time history |
| Nonprofit debt management plan | A credit counselor negotiates lower rates and one monthly payment | Balances you can repay in 3–5 years but can’t refinance |
Source: Federal Reserve G.19 (card and personal loan rates, Q2 2026); NCUA — 18% ceiling
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Credit Card Interest Cap FAQ
Is there a 10% cap on credit card interest rates now?
No. As of October 22, 2026, no federal law caps credit card APRs at 10%. The Senate and House bills are in committee.
What is the 10 Percent Credit Card Interest Rate Cap Act?
It is a bill, S.381 in the Senate and H.R.1944 in the House, that would amend the Truth in Lending Act to cap credit card APRs at 10% including all finance charges, limit fees, let cardholders recover overcharges, and expire on January 1, 2031.
Who sponsored the credit card interest cap bill?
Sen. Bernard Sanders introduced S.381 with Sen. Josh Hawley as an original cosponsor. Rep. Alexandria Ocasio-Cortez introduced H.R.1944 in the House.
Can the President cap credit card interest rates by himself?
It is unclear. NPR reported in January 2026 that it was not clear whether the President had authority to impose a cap without legislation from Congress.
What is the average credit card interest rate right now?
The Federal Reserve’s G.19 release shows an average of 22.15% on accounts assessed interest in Q2 2026.
Related Guides
Sources: Congress.gov — S.381 · Congress.gov — S.381 text · Congress.gov — H.R.1944 · NPR, Jan. 12, 2026 · Federal Reserve G.19 · New York Fed, Q2 2026 · NCUA, Feb. 6, 2026. Bill status checked on Congress.gov on October 22, 2026. DebtRoute does not take a position on pending legislation; this page summarizes it for readers. Not legal or financial advice.