What does a 10% credit card interest rate cap mean for banks and credit unions? Key risks, data, and customer impact.
Accelerize360 (A360) empowers banks and credit unions to thrive by streamlining operations, improving customer/member engagement, and optimizing data management. We offer solutions with customer/member relationship management and real-time analytics to provide essential tools for success. The debate over a potential 10% credit card interest rate cap poses challenges and compelling opportunities for data-driven, customer/member -first financial institutions.
The recent proposal by President Trump to implement a one-year, 10% cap on credit card interest rates has sparked considerable debate. This initiative aims to provide relief to American consumers burdened by high borrowing costs, with the President stating, “We will no longer let the American public be ripped off by credit card companies that are charging interest rates of 20% to 30%.” The proposal has elicited a diverse range of responses, both positive and negative, regarding its potential implications.
It is important to assess the reality of the situation. U.S. consumers heavily relied on credit cards in 2024, with data from the Consumer Financial Protection Bureau (CFPB) showing annual purchase volume reaching approximately $3.6 trillion, up from about $3.2 trillion in 2022. This upward trend is expected to continue through 2025 and 2026. Given that an estimated 55–65% of cardholders carry balances month to month, the implementation of a 10% cap could prompt credit card companies and financial institutions to significantly reduce credit access to mitigate risk. Congress must therefore carefully assess this potential outcome when determining whether the cap is the right approach to enhance consumer affordability.
Regardless of the decision from Congress and regulators, financial institutions must not forget the needs of their customers and members. Consumers have considerable expectations in 2026 and want their financial institution to meet them:
Despite some indicators of economic improvement, other data points indicate ongoing financial difficulties for many consumers. For instance, a PYMNTS survey found that 62% of consumers were cutting back on spending for 2026, and 50% reported daily expenses as a challenge. Furthermore, a Wells Fargo report indicated that 70% of consumers are focused on increasing savings in 2026. This data underscores the clear need for financial resources to better support a large segment of the consumer population.
Beyond direct financial challenges, customer experience continues to be a headline priority. According to FICO, 88% of consumers consider customer experience a top priority when choosing a financial institution. Additionally, 67% of account holders do not feel truly known by their institution, and 53% would consider switching if another institution offered a more personalized experience. To achieve these experiences, 75% of consumers want a hybrid model that allows them to visit a branch while also having a strong digital experience.
In today’s financial landscape, security and transparency are not just expectations—they are non-negotiables for bank customers and credit union members. With rising fraud threats, growing digital adoption, and heightened consumer awareness, people want answers to two questions: Is my money safe? and Can I trust how my institution operates?
Eighty-one percent of U.S. consumers say a financial institution’s fraud prevention and cybersecurity capabilities are important when choosing an institution.
For financial institutions to take advantage of all these opportunities, it is imperative they have access to the right data to truly meet customers and members where they are. This requires banks and credit unions to have the appropriate data infrastructure to aggregate all necessary data. When considering the potential outcomes if a 10% interest rate cap becomes law, data is needed to assess associated risks. Credit risk models, line management, early delinquency detection, and collections optimization will need to be evaluated. Is your institution prepared, and can it access all the right data?
It remains uncertain what will happen with the cap on credit card interest rates. Financial institutions should evaluate the risk their current portfolios pose and assess mitigation strategies as necessary. However, during this period, banks and credit unions must not lose focus on their customers and members. If they do, there could be many more lost opportunities.
At Accelerize 360, we believe community financial institutions play a critical role in supporting consumers through periods of economic and regulatory change. As potential policy shifts such as a credit card interest rate cap introduce new complexity, having the right data foundation becomes essential. From credit risk modeling and portfolio analysis to customer insights and experience optimization, access to accurate and connected data enables banks and credit unions to make informed and confident decisions.
If your institution is navigating these challenges and evaluating what comes next, we invite you to connect with Accelerize 360. Let’s discuss how the right data, insights, and strategy can help your organization remain resilient, customer focused, and prepared for the future.
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