Trump pushes for 10% cap on credit card interest. Here's how to get a lower rate yourself

With average credit card interest rates nearing 30%, carrying a balance has become increasingly costly for millions of Americans.

President Donald Trump last week urged Congress to pass a temporary one‑year, 10% cap on credit card interest rates, arguing the move would help people save money. Critics warn the proposal could restrict access to credit for borrowers who need it most.

But even without a federal cap, consumer advocates say cardholders have more power than they think.

Ask for lower rate

Thomas Nitzsche, with the nonprofit credit counseling agency Money Management International, said one of the simplest ways to lower your interest rate is also the most overlooked: just ask.

"A LendingTree survey found that about three‑fourths of people who asked their creditor for a lower interest rate got one," Nitzsche said, "and that on average, they shaved off six percentage points, which is significant if you're talking about a lot of debt over a long period of time."

He added that customers with good credit — or long‑standing loyalty to their bank — may have even more leverage. In many cases, he said, a lender would rather reduce your rate than lose your business entirely.

"It's important for consumers to understand their options," Nitzsche said. "A lot of consumers think in black and white — either they can pay the debt off themselves or they need to declare bankruptcy. But there are many steps in between that can make repayment more manageable."

Consider credit counseling

For those struggling with high balances, nonprofit credit counseling agencies like MMI can also negotiate lower rates on a consumer's behalf as part of a structured debt‑management plan.

That's the path Philadelphia resident Nick March took after accumulating nearly $30,000 in credit card debt. He told In Your Corner last year that getting on a repayment plan gave him hope for the future.

"Having that sort of end date of when all of this will be paid off is like, 'OK, now we can look at getting a house,'" March said. "It will feel like a huge weight is lifted off our shoulders."

The Financial Counseling Association of America, a national association representing financial counseling companies, can help you find a certified credit counselor. You can also seek help through the National Foundation for Credit Counseling, the nation's largest nonprofit financial counseling organization.

Transfer balance

Another option for consumers with strong credit scores is transferring a balance to a credit card offering a 0% introductory interest rate. 

These promotions typically include an upfront transfer fee, but they can help borrowers pay down debt faster if they can clear the balance before the promotional period ends.

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