Trump’s 10% Credit Card Rate Cap: Which Stocks Are at Risk - and What Investors Should Watch Next

January 10, 3:22 pm

On January 9, 2026, President Trump revived a major campaign pledge: a one-year cap on credit card interest rates at 10%, targeted for implementation on January 20, 2026. With U.S. credit card debt now exceeding $1.2 trillion and average APRs near 21%, the proposal represents a potentially disruptive shift for the consumer finance industry.

For investors, the implications vary widely depending on how each company earns money. Firms that rely on revolving consumer debt face direct margin pressure, while payment networks and fee-driven models are far less exposed. Below, we examine the most affected companies, how they could be impacted, along with some interesting alternative data insights that informed investors should be aware of.

Capital One (COF)

Capital One is now the largest credit card lender in the U.S. following its Discover acquisition. Its business model is heavily dependent on interest income from revolving credit, particularly among borrowers who typically pay APRs well above 10%.

Alternative insights:

• Rapid expansion: Quarterly revenue grew +67.9% YoY, supported by +41.1% employee growth.
• High sensitivity: A forced repricing of its loan book would directly pressure profitability.

COF Price & AI Score

Synchrony Financial (SYF)

Synchrony specializes in store-branded credit cards, a segment that relies heavily on high interest margins. A 10% cap would materially compress those margins and could force changes to partner agreements or credit availability.

Alternative insights:

• Efficiency pivot: Despite +20.7% revenue growth, job postings fell -59.9% YoY.
• Internal caution: Employee outlook declined -7.5% YoY, signaling rising concern.

SYF Price & AI Score

Citigroup (C)

Citigroup operates large branded and private-label credit card programs where interest income remains a meaningful contributor. Recent stock performance reflects optimism around restructuring and execution.

Alternative insights:

• Operational cooling: Job postings declined -50% YoY.
• Employee sentiment: Employee outlook sits at 58%, suggesting cautious internal expectations.

C Price & AI Score

JPMorgan Chase (JPM)

JPMorgan (JPM) is the largest credit card issuer by volume in the U.S. While this gives it significant exposure in absolute interest income dollars, its diversified revenue base provides flexibility to absorb margin pressure.

Alternative insights:

• Rising engagement: Web traffic increased +91.9% YoY, pointing to strong consumer interaction.
• Strategic leverage: JPM’s scale allows it to adapt more effectively to regulatory shifts.

JP Morgan Chase - Webpage traffic

Bank of America (BAC)

Bank of America relies on steady interest income across a broad consumer base. A rate cap would likely accelerate defensive measures such as tighter underwriting and reduced rewards.

Alternative insights:

• Defensive posture: Job postings declined -66.7% YoY.
• Lower activity: Web traffic fell -13.1% YoY.

BAC Price & AI Score

American Express (AXP)

American Express combines lending with a premium, fee-based model. Because many customers pay balances in full, the company relies less on interest income than traditional card issuers.

Alternative insights:

• Brand strength: Strong social presence and an employee outlook of 78%.
• Revenue balance: Annual fees and merchant fees cushion lending exposure.

AXP Price & AI Score

Bread Financial (BFH)

Bread Financial focuses on retail credit with limited diversification. A rate cap would pressure margins and could strain liquidity if funding costs exceed capped interest income.

Alternative insights:

• Deteriorating internals: Employee outlook declined -12.4% YoY.
• Falling engagement: Web traffic decreased -11.4% YoY.

BFH Price & AI Score

Visa (V)

Visa operates the world’s largest payment network and does not lend money or earn interest income. As a result, a cap on credit card APRs would not directly impact Visa’s revenue model. Even if banks reduce credit limits or cancel cards, transactions that do occur still flow through Visa’s network, preserving its fee-based economics.

Alternative insights:

• Growing consumer engagement: Instagram followers increased +67.2% YoY, signaling rising brand relevance.
• Expansion signals: Job postings rose +35.0% YoY, indicating continued investment.

V Price & AI Score

Mastercard (MA)

Mastercard shares Visa’s transaction-only business model, earning fees per payment rather than interest on consumer debt. This structure leaves Mastercard largely insulated from direct regulatory pressure tied to lending, even if card issuers scale back credit availability.

Alternative insights:

• Strong internal confidence: Employee outlook stands at 81%, reflecting high workforce optimism.
• Steady scaling: Employee headcount grew +16.3% YoY, supporting long-term growth.

MA Price & AI Score

List of all companies

Company		Market Cap	AI Score
	JP Morgan Chase & Co. JPM	$906B	51
	Citigroup C	$217B	46
	Bank of America BAC	$408B	45
	American Express AXP	$259B	56
	Capital One COF	$159B	55
	Synchrony Financial SYF	$31B	56
	Bread Financial BFH	$3.7B	48
	Visa V	$667B	59
	Mastercard MA	$516B	68

Bottom Line for Investors

A 10% credit card APR cap would reshape profitability across consumer finance, with the biggest impact on companies that depend heavily on interest income. For investors, the challenge isn’t just understanding the exposure - it’s reacting early enough when policy risk suddenly enters the market.

Announcements tied directly to President Trump can move stocks immediately, often before companies, analysts, or regulators provide clarity. In these situations, speed matters. Knowing about a policy proposal at the moment it is announced allows investors to quickly assess which stocks are likely to be affected and adjust positioning before the broader market fully reacts.

That’s why we created Trump Stock Alerts. With these alerts, our members are notified whenever the President makes a new announcement that could impact specific stocks or the market as a whole.

Get More Insights

Sign up and get access to a personalized dashboard, deeper insights, AI stock picks, stock alerts, weekly newsletter and much more.