159 Million Americans Could Lose Access to Credit Under 10% Credit Card Rate Cap

Posted: Jan 21 2026

A proposed 10% federal credit card interest rate cap would significantly reduce access to credit for millions of consumers nationwide, and even those with good credit scores who pay their bills on time will be affected by the rate cap, according to a new analysis of credit card data by the ABA.

The 10% Credit Card Interest Rate Cap by Sens. Josh Hawley (R-Mo.) and Bernie Sanders (I-Vt.) has made little progress in Congress, but the idea recently received a boost when President Trump proposed a one-year, 10% cap on credit card interest rates. To understand the effects of a cap, ABA analyzed data from credit card issuers accounting for about 75% of the market. Among the findings:

74%–85% of open credit card accounts nationwide would be closed or have their credit lines drastically reduced.
At least 137 million cardholders – and up to 159 million – would no longer be able to use their cards.
State-by-state analyses are consistent with the national data, indicating the pain from price caps would be felt in every corner of the country.
While the proposed rate cap aims to lower consumer costs, the new data demonstrates that it would instead undermine affordability by effectively eliminating the credit card as a spending tool and vital source of liquidity for tens of millions of Americans, according to ABA

“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.”

To learn more, visit: https://www.aba.com/about-us/press-room/press-releases/rate-cap-research