Bank of America, Citi Weighing New Credit Cards With 10% Rate

What is happening

• Bank of America and Citi are each weighing new credit card offerings that would have a maximum interest rate of 10% APR.

• The move is being discussed as a way to respond to President Donald Trump’s call for a one‑year cap on credit card interest rates at 10%.

Why this is being discussed

• President Trump has publicly demanded that credit card issuers limit interest rates to 10% for one year, framing it as consumer relief from high borrowing costs.

• Banks have warned that a broad, mandatory cap could reduce lending, shrink credit limits, and potentially hurt economic growth, so some are exploring narrow, voluntary 10% products instead.

Likely card features and limits

• Analysts expect any 10% cards to be no‑frills, with little or no rewards and tighter approval standards to keep risk and costs down.

• Such cards would probably target customers with strong credit scores and low default risk, rather than the broader mass‑market segment that currently pays much higher average rates near 20%.

What this means for consumers

• If launched, these 10% cards could offer significantly cheaper revolving credit than typical U.S. credit cards, but access may be restricted to the most creditworthy borrowers.

• For now, there is no confirmed launch date, specific card names, or detailed terms from either bank, and any wider regulatory cap would still require legislation with uncertain prospects in Congress.