It could become law if Congress takes action and passes the 10 Percent Credit Card Interest Rate Cap Act (S. 381) introduced in 2025 by U.S. Sen. Bernie Sanders, an independent. The bill is designed to limit the amount of interest banks can charge consumers.
The average annual percentage rate (APR) on credit cards now is about 24%, according to LendingTree. Capping APRs at 10%, even for just one year, could save American consumers billions.
While the political battle over the proposed cap could drag on or go nowhere, the reality is that many borrowers need help ASAP.
Fortunately, you don’t have to wait for Congress or a signature from the president to access these rates. Most major issuers already offer an internal mechanism to drop your APR significantly, often matching or beating the proposed 10% federal cap. You just have to know what to ask for.
The program banks don’t advertise
While standard customer service representatives will almost always reject a casual request for a lower interest rate, banks operate formal internal departments designed to help customers avoid default.
According to data from NerdWallet, these options are typically called hardship programs. When you successfully enroll, issuers generally lower interest rates from the standard 20% to 30% down to between 6% and 9%. In some cases, the rate can drop to 0%.
These terms usually last for 12 months, giving you a chance to attack the principal balance without compounding interest eating up your payments.
You have to use the right words
Accessing these rates relies on specific phrasing. If you simply ask for a rate reduction, the algorithm likely says no.
Instead, you need the right terminology. So inquire specifically about your card issuer’s financial relief program or hardship program.
American Express verifies this distinction on its site. Its documentation explicitly states that enrollment in their Financial Relief Program can lower both monthly payments and interest rates for up to 12 months.
This is a formal product with legal agreements, not a one-time favor from a customer service agent or supervisor.
The trade-off
This strategy for lowering the interest rate on your credit card bills is effective, but it comes with a strict condition. To secure that single-digit interest rate, you must agree to stop using the card.
When you enroll in a hardship or relief program, the issuer will freeze your account to prevent new charges. This ensures that you are paying down debt rather than adding to it.
If you can live without swiping that specific card for a year, this unadvertised off-ramp can save you thousands in interest charges while Washington continues to debate the law.
Need help with your credit card bills? If you have $15,000 or more in debt, National Debt Relief is one of the most respected providers of debt relief in the U.S.
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