New York, Jan 12, 2026, 09:48 EST — Regular session
- Affirm shares dipped in early trading following an initial surge linked to Trump’s proposed cap on credit-card rates.
- The proposal has intensified speculation about whether borrowers will switch from credit cards to buy-now-pay-later loans.
- Traders are focused on Washington’s next steps and how lenders assess risk as earnings season kicks off.
Affirm Holdings’ shares slipped roughly 0.4% to $81.45 on Monday, after fluctuating between $80.90 and $84.65 in initial trades. The stock closed at $81.80 on Friday. 1
Shares dropped after President Donald Trump proposed a one-year cap on credit-card APRs at 10%. The idea hit bank and card-lender stocks but briefly boosted some alternative finance firms. Affirm climbed as much as 5% in premarket, though investors doubted the plan’s chances. Jefferies analysts called it “dead on arrival,” saying no executive power can enforce it alone. JPMorgan’s Vivek Juneja warned it might drive borrowers to “more expensive debt.” 2
Trump announced the cap would take effect on Jan. 20 but didn’t explain how firms would be forced to comply. Senator Elizabeth Warren dismissed the move as pointless without a law backing it. Leading banking groups warned a 10% cap would “reduce credit availability” and push consumers toward “less regulated, more costly alternatives.” 3
Affirm is a buy-now-pay-later lender, or BNPL, allowing shoppers to break purchases into fixed payments, often with promotional 0% interest offers. Simply put, it’s a borrowing option that avoids revolving credit-card debt.
Some analysts see Trump’s proposal as a possible boost for BNPL and personal-loan companies if banks scale back on card lending. Dan Dolev of Mizuho called it something that “could have major positive ramifications” for lenders like Affirm. At the same time, Evercore ISI’s Sarah Bianchi pointed out that implementing any cap would probably need new legislation, given the current rules around how banks set card rates. 4
Investors grappled with distinguishing the headline impact from the underlying mechanics. While a cap on card APRs might drive some consumers to installment loans, it could also reduce overall access to unsecured credit if lenders back away, unable to price the risk properly.
Affirm bulls face another hurdle: volume tells only part of the story. Should credit shift from banks to non-bank lenders, the borrower mix might deteriorate, pushing losses higher if the economy weakens or delinquency rates creep up.
For the moment, the downside scenario is straightforward. Should the proposal falter — or if lenders and lawmakers make it clear it won’t advance — the surge in BNPL stocks seen in premarket trading could reverse just as quickly, pushing those shares to track rate moves and consumer credit concerns once again.
The next triggers are as political as they are financial: whether the White House chimes in, if any legislation actually reaches Congress, and if bank leaders mention credit tightening, pricing, or charge-offs during this week’s earnings calls.
Affirm is set to report earnings around Feb. 5, per Nasdaq’s calendar — a key moment that could shift focus back to the company’s credit trends and future outlook. 5
