10 Percent Credit Card Interest Rate Cap Act

# 10 Percent Credit Card Interest Rate Cap Act Summary **What It Would Do** This bill would cap credit card interest rates at 10 percent annually. Currently, credit card companies can charge interest rates that often exceed 20-30% or higher, depending on market conditions and a borrower's creditworthiness. The legislation would set a federal maximum limit, preventing card issuers from charging above that threshold. **Who It Affects** The bill would directly impact credit card holders, particularly those who carry balances and pay interest. It would also affect credit card companies and lenders.

Supporters argue it would help consumers struggling with debt, while opponents raise concerns about how card issuers might respond—such as reducing available credit, charging higher fees, or tightening approval standards. **Current Status** As of now, the bill is in committee, meaning it has been introduced but has not yet advanced to a full House vote. It was sponsored by Rep. Alexandria Ocasio-Cortez (D-NY). For a bill to become law, it must pass both the House and Senate and be signed by the President.