Analysis Warns 10% Credit Card Rate Cap Could Cut Off Credit Access for 159 Million Consumers

A new analysis from the American Banking Association examining the impact of a federal 10 percent APR cap on credit cards finds that the policy could sharply reduce consumer access to credit across the country. According to the report, the cap would result in the closure or severe restriction of between 74 and 85 percent of open credit card accounts nationwide, affecting up to 159 million cardholders.

The analysis evaluated the potential impact of the 10 percent Credit Card Interest Rate Cap Act, legislation sponsored by Sens. Josh Hawley (R-Mo.) and Bernie Sanders (I-Vt.), which was recently endorsed by President Donald Trump. The findings suggest that the proposed cap would lead issuers to tighten underwriting standards significantly, reduce credit limits, raise fees, and eliminate rewards programs and promotional offers to offset reduced interest revenue.

Importantly, the report indicates that the effects would not be limited to subprime borrowers. While consumers with lower VantageScores would face the highest likelihood of account closures, the ABA found that even “super-prime” borrowers with scores above 780 would experience reduced credit availability and less favorable terms under a rate cap.

ABA President and CEO Rob Nichols said the data shows interest rate caps lead to fewer consumer choices and reduced access to affordable credit, particularly for households already facing financial strain. The survey underlying the analysis was conducted among ABA member institutions between December 4, 2025 and January 16, 2026.

As policymakers continue to debate rate caps as a tool to address affordability concerns, the analysis adds to growing questions about potential tradeoffs between lower interest rates and broad access to revolving credit.