- Trump proposed a 10% credit card rate cap in January 2026. As of March, no legislation has passed and no executive action has been taken.
- HELOC-backed credit cards from Aven and Trovy already offer rates between 5% and 15% — at or below the proposed cap — available to qualifying homeowners today.
- On a $15,000 balance, a 7% HELOC card saves roughly $2,000/year vs. the 20%+ average credit card rate, and $450/year more than even Trump's proposed 10% cap.
- The trade-off is real: HELOC cards are secured by your home. Lower rates come with higher-stakes consequences for missed payments.
- The rate cap faces steep political odds. For homeowners with equity, HELOC cards deliver the relief now — no legislation required.
7.04% — that's the average HELOC rate right now, according to Bankrate's March 25, 2026 survey. Meanwhile, President Trump's proposed 10% cap on credit card interest rates, announced in January 2026, still hasn't materialized. If you're a homeowner carrying credit card debt at 20%+ interest and waiting for Washington to lower it, there's an option already available that most people overlook: a HELOC card.
HELOC-backed credit cards (home equity line of credit cards) function like regular credit cards but charge rates between roughly 5% and 15% — well below Trump's proposed 10% cap on standard cards, and far below the 20%+ average that Americans currently pay. Here's what happened with the rate cap proposal, why it stalled, and how HELOC cards compare right now.
What Trump Proposed — and Why It Hasn't Happened
On January 9, 2026, President Trump posted on Truth Social calling for a one-year, 10% cap on credit card interest rates, effective January 20 — the one-year anniversary of his second inauguration (CNBC, January 2026). The proposal revived a campaign pledge and drew immediate bipartisan attention. Senators Josh Hawley (R-MO) and Bernie Sanders (I-VT) had previously introduced legislation seeking the same cap.
The industry response was swift and negative. The American Bankers Association warned that a 10% cap would reduce credit availability, particularly for borrowers with lower credit scores. Bank of America reportedly considered voluntarily offering a card capped at 10% for one year, though no formal product launch has been confirmed (CNBC, January 2026).
No legislation has passed, and no executive action has been taken to enforce the cap. Senator Elizabeth Warren criticized the proposal as meaningless without a bill, noting that merely asking credit card companies to lower rates voluntarily has no enforcement mechanism (Reuters, January 2026).
The average credit card interest rate remains above 20%, according to Federal Reserve data. For the roughly 175 million Americans who carry credit cards, the promised relief hasn't arrived.
What HELOC Cards Already Offer Today
While the credit card rate cap debate stalls in Washington, a small but growing product category is already delivering rates below 10% to qualifying homeowners: HELOC-backed credit cards.
A HELOC card works like a regular credit card — you swipe, tap, or shop online — but the line of credit is secured by your home equity rather than being unsecured. Because your home serves as collateral, lenders can offer substantially lower rates than traditional credit card issuers.
APR 7.99%–15.49%. Unlimited 2% cash back. Credit lines up to $400K. $0 annual fee. Available in 43 states.
APR 5.69%–13.24%. 1.5%–3% cash back. Credit lines up to $100K. $0 annual fee. No minimum draw required.
CPA Practice Advisor named HELOC cards one of the top credit card trends to watch in 2026, with industry consultant Matthew Goldman noting the strong demand among homeowners who hold low-rate mortgages and want cash without refinancing (CPA Practice Advisor, February 2026).
The Math: 20% vs. 10% vs. 7%
Let's put concrete numbers on what different rates mean for a borrower carrying a $15,000 balance — roughly the average for households with credit card debt.
| Rate | Monthly Interest | Annual Interest | Payoff Time ($400/mo) |
|---|---|---|---|
| 20.5% (current avg) | ~$256 | ~$3,075 | 56 months |
| 10% (proposed cap) | ~$125 | ~$1,500 | 44 months |
| 7% (HELOC card) | ~$88 | ~$1,050 | 41 months |
At 7%, the annual interest cost falls to approximately $1,050, saving the borrower roughly $2,000 per year compared to the current average — and $450 per year more than Trump's proposed cap would deliver. The key difference: a HELOC card at 7% already exists. A 10% credit card cap does not.
Why HELOC Cards Can Offer Lower Rates
The rate difference isn't magic — it's collateral.
Traditional credit cards are unsecured debt. If a borrower defaults, the issuer has no asset to recover. That risk is priced into the interest rate, which is why average credit card APRs (annual percentage rates) sit above 20% even for borrowers with decent credit.
HELOC cards are secured by your home. The lender has a lien on your property, which means they have a legal claim against a real asset if you default. That reduced risk allows them to offer rates in the 5–15% range. But it also means your home is on the line. A missed credit card payment hurts your credit score. Enough missed HELOC card payments could ultimately lead to foreclosure. Both Aven and Trovy state that foreclosure is a last resort — but the lien is legally enforceable.
Who Benefits — and Who Should Be Careful
HELOC cards aren't for everyone. They require homeownership with equity, and they carry risks that unsecured credit cards don't.
HELOC cards make sense if you…
- Own a home with at least 15–20% equity
- Carry high-interest credit card debt you want to consolidate at a lower rate
- Have the discipline to treat a home-equity-backed card differently than an unsecured card
- Want flexible, low-cost equity access without the friction of a traditional HELOC draw
- Have a credit score of 640+ (720+ for the best rates)
HELOC cards are risky if you…
- Tend to overspend on credit cards — putting impulse purchases on a card backed by your home amplifies consequences
- Are already stretched thin on housing payments
- Don't have enough equity — most providers require CLTV below 85–90%
- Live in a state where providers aren't available
What About the Rate Cap Going Forward?
The 10% credit card rate cap isn't dead, but it faces steep odds. Here's where things stand:
Legislative path: The Hawley-Sanders bill (S.381) remains in committee. Even with bipartisan sponsorship, the banking industry's lobbying against it has been aggressive. The Electronic Payments Coalition and the Bank Policy Institute have both argued that a cap would reduce credit access for millions of borrowers (CBS News, January 2026).
Executive action: It's unclear whether the president has legal authority to cap rates by executive order. Most experts believe legislation would be required. No executive action has been attempted as of March 2026.
Voluntary compliance: Bank of America reportedly considered a voluntary 10% rate for one year. No major issuer has formally launched such a product (CNBC, January 2026).
Fed rate cuts: Bankrate's Ted Rossman initially predicted three quarter-point Fed rate cuts in 2026, which would lower the prime rate and bring down variable-rate borrowing costs across HELOCs and credit cards. However, stubborn inflation and geopolitical tensions — including the ongoing war in Iran — have made that timeline less certain. Rossman has since tempered his forecast, saying rates "probably won't move much for the foreseeable future" (Bankrate, March 2026).
For homeowners who qualify, HELOC cards deliver rate relief today — no legislation, no executive order, no waiting. The rates are already below the proposed cap.
Frequently Asked Questions
The Bottom Line
Trump's proposed 10% credit card rate cap would be meaningful if it happened — cutting interest costs nearly in half for the average cardholder. But it hasn't happened, and the political and industry headwinds suggest it may not happen anytime soon.
For homeowners with equity, HELOC cards already offer rates at or below the proposed cap. Aven and Trovy both provide variable rates starting in the 5–8% range for well-qualified borrowers, with the convenience of a regular credit card and the added benefit of cash back rewards.
The trade-off is that your home backs every purchase. That's not a reason to avoid HELOC cards — it's a reason to use them thoughtfully. If you're disciplined with credit and carrying expensive unsecured debt, a HELOC card may be the rate relief you've been waiting for, without waiting for Washington.
Want to see what rate you'd qualify for? Both Aven and Trovy offer prequalification with no credit score impact. Compare your options and decide if a HELOC card makes sense for your situation.
