‘This will never happen’: Graham Stephan slams Trump’s 10% credit card cap as ‘pure performance.’ Cut your rates Thomas Kent Thu, November 12, 2026 at 7:15 AM EST 7 min read GC=F -1.44% Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
A 10% ceiling on credit card interest could give Americans carrying balances some breathing room. But "The Iced Coffee Hour" podcast co-host Graham Stephan says they shouldn't count on it.
"Capping unsecured credit card rates at 10% is pure performance. This will never happen," Stephan wrote on X (1).
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Stephan is a real estate investor and personal finance YouTuber who built his audience explaining saving, investing and the housing market.
His warning comes as Sen. Elizabeth Warren renewed her willingness to work with President Donald Trump on a cap (2) on Nov. 8. Meanwhile, the average rate on interest-bearing credit card accounts was 22.36% in August (3), according to Federal Reserve data.
For borrowers, the debate raises two questions: Would a cap make credit cheaper or harder to get? And how can you lower your own borrowing costs while Washington debates the idea?
Credit cards generally don't require collateral, such as a house or car that a lender can repossess if you stop paying. Stephan argues that limiting interest would make some borrowers too expensive to serve.
"You cannot profitably lend money with no collateral when charge-offs run 4%+ and fraud + operating costs eat the rest," he wrote.
Charge-offs are debts banks write off as losses. The latest figure in the Fed's commercial-bank credit card series (4) was 3.92% in the second quarter of 2026, down from 4.01% in the first quarter. Those are annualized rates, net of recoveries.
That puts losses near the level Stephan cited, but it doesn't establish that every issuer would lose money under a 10% cap. His broader claim is a prediction about how lenders would respond.
"Banks will simply stop issuing cards to anyone who isn't already low-risk and high-income. Result: millions lose access to credit entirely and get pushed into worse alternatives," he wrote.
"Classic 'help the poor' policy that does the opposite."
Supporters argue that borrowers need relief from steep interest charges. Trump called for a one-year 10% cap starting Jan. 20, but Warren was still pressing regulators back in April over the lack of progress (5).
Whatever happens next, a political promise won't automatically change the APR on your next statement, so don't count on it. Still, there are steps you can take yourself to put yourself in the best possible position to tackle "bad debt."
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Start with the customer service number on the back of your card. The Federal Trade Commission says you can ask your issuer for a lower rate (6), although approval isn't guaranteed.
Explain what you're paying and ask whether a lower purchase APR is available. If money is tight, ask about a hardship arrangement (7) before you miss a payment. Get the duration, fees and any restrictions on using your card in writing.
Also, check why your rate rose. If an increase followed a payment more than 60 days late, six consecutive on-time minimum payments can require the issuer to restore your previous rate (8).
If your issuer won't budge, consolidating your credit card debts into a personal loan through Credible could help you pay them off faster if you qualify for a lower rate. Instead of juggling multiple monthly payments, you'll have one predictable payment to manage each month.
Through Credible's online marketplace, finding the right loan becomes much simpler. You can comparison-shop for the lowest interest rates available to you from multiple lenders with just a few clicks.
Checking your prequalified rates won't affect your credit score, making it easier to see whether you could pay less interest before committing to an application. Proceeding with a lender generally involves a hard credit inquiry.
Before choosing a loan, compare the APR, fees, repayment term and total payments. A smaller monthly bill can cost more overall if you stretch repayment over additional years. And paying off your cards with a loan won't help if you build those balances back up.
A 0% introductory balance-transfer offer is another option. Check the transfer fee, promotional deadline and APR afterward and avoid adding purchases to the transfer card.
For example, transferring $5,000 with a 3% fee creates a $5,150 balance. With a 15-month interest-free window, you'd need to pay about $344 a month to clear it before the regular rate begins, assuming no other charges.
Now, for argument's sake, let's say you kept that $5,000 on your credit card charging a (slightly more reasonable) 20% interest rate. Over that same 15-month period, you'd need to pay $379 a month and your interest would cost you roughly $692.
So the transfer would save you about $542 after the fee, assuming monthly interest calculations and no new charges.
Just bear in mind that the Consumer Financial Protection Bureau warns (7) that transfer promotions expire and new purchases may accrue interest even while the transferred balance has a promotional rate.
While paying down debt, make at least the minimum on every account and direct extra money toward the highest APR. This "debt avalanche" approach targets the balances costing you the most in interest.
Set payment reminders or minimum-payment autopay, with enough money in your bank account to cover it. Paying on time and keeping balances low (9) relative to your limits can help your credit profile. Check your credit reports for errors (10), too.
Those habits may improve your position when shopping for credit, but they don't automatically lower an existing card's APR. Variable rates can still change.
Once you're no longer carrying a balance, aim to pay each statement balance in full by its due date. And cards with a purchase grace period can let you avoid interest on new purchases (11) altogether. You don't need to carry debt or pay interest to build credit.
Tracking the bigger picture can also help you see whether your repayment plan is working.
You can also get a real-time snapshot of your finances with Rocket Money's premium Net Worth feature.
You can link your accounts, including bank accounts, investments, retirement accounts, property, vehicles and even manually added items like jewelry or collectibles, so you see what you own versus what you owe, all in one place. Balances update automatically, giving you a clear picture of your financial progress without having to manage multiple spreadsheets.
Security is built in at every step with bank-level 256-bit encryption and Plaid-powered connections, so your login info is never stored.
Rocket Money's intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders, credit scores and budgeting basics, while premium features — like automated savings, customizable dashboards and more — make it easier to stay on top of your retirement contributions and overall financial goals.
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X (1); CBS News (2); Federal Reserve Economic Data (3), (4); Bloomberg (5); Federal Trade Commission (6); Consumer Financial Protection Bureau (7), (8), (9), (10), (11)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
