A report from the American Banking Association has found that a proposed 10 percent federal credit card interest rate cap would reduce access to millions of American consumers.
The analysis assessed the expected impact of the “10 Percent Credit Card Interest Rate Cap Act,” sponsored by U.S. Sens. Josh Hawley (R-AR) and Bernie Sanders (I-VT). The idea has recently been pushed by President Donald Trump as well. ABA’s analysis found that 74 to 85 percent of the open credit card accounts nationwide would be closed or have their credit lines drastically reduced, and up to 159 million cardholders would no longer be able to use their cards.
“This new data is clear: interest rate caps lead to fewer options, higher costs and reduced access—especially for those who can least afford to lose their credit card,” ABA President and CEO Rob Nichols said. “We urge the administration and Congress to carefully consider the significant harm a rate cap would have on U.S. households and the broader economy. This is not the solution to the affordability challenge.”
The analysis found that the 10 percent APR cap would impact most cardholders – including those with high credit scores. While cardholders with VantageScores about 600 would see accounts either closed or see a reduction in their credit lines, even “super-prime” borrowers with VantageScores above 780 also would be negatively impacted. Generally, the APR reduction would result in tighter credit standards, lower credit limits, higher fees, reduced benefits and rewards, and fewer low-rate promotional offers.
ABA conducted the member survey from Dec. 4, 2025, through Jan. 16.