A new bill in Congress could bring a major shift to how credit card companies charge interest.

If passed, this legislation could change how millions of Americans manage their debt.

But not everyone agrees on what this means for consumers.

What’s in the proposed legislation?​

A bipartisan effort led by Representatives Alexandria Ocasio-Cortez and Anna Paulina Luna aims to cap credit card interest rates at 10 percent.

The bill, known as H.R. 1944, would amend the Truth in Lending Act and enforce the cap until January 1, 2031.


Currently, credit card interest rates average around 21 percent, according to the St. Louis Fed.

Supporters say the cap would help protect consumers from spiraling debt.

Why does this matter?​

As of December 2024, Americans hold $1.21 trillion in credit card debt, with 7.18 percent of accounts in serious delinquency.

High interest rates have been a growing financial burden, making it harder for consumers to pay down balances.

The bill’s sponsors argue that credit card companies have profited significantly while consumers struggle with rising debt.


Also read: Retirees struggling with credit card debt—a crisis we can't ignore!

Who supports the bill?​

The effort has gained bipartisan support, with Senators Bernie Sanders and Josh Hawley introducing similar legislation (S.381) earlier this year.

Ocasio-Cortez stated, “Credit cards with high interest rates regularly trap working people in endless cycles of debt.”

Luna added, “For too long, credit card companies have abused working-class Americans with absurd interest rates.”

The debate over interest rate caps​

While the bill aims to reduce financial strain, some experts warn it could limit access to credit.

Critics argue that a 10 percent cap may cause lenders to tighten credit requirements or offer fewer products.

John Cabell, managing director at J.D. Power, noted that capping interest rates could make lending less profitable, affecting people with lower credit scores the most.


Also read: Visa’s credit card overhaul: Are you ready for higher costs?

What happens next?​

The bill has been referred to the House Committee on Financial Services.

Its success depends on whether lawmakers and the public rally enough support to move it forward.
Would a 10 percent interest cap help consumers, or would it make it harder to access credit? Join the conversation in the comments below, and let’s discuss how this could impact your finances.

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