Bank of America may introduce credit card with 10% APR
Bank of America is weighing whether to launch a new credit card that would comply with President Trump's push to temporarily cap card interest rates at 10%, according to a person familiar with the financial giant's plans.
Bank of America already offers credit cards with initial average percentage rates below 10%. For example, its no-frills BankAmericard offers consumers a 0% introductory APR for 18 months. Once that period ends, however, the APR rises to between 14.5% and 24%, depending on the cardholder's credit score.
In a social media post, Mr. Trump earlier this month called for a 10% cap on credit card rates for one year, accusing credit card issuers of having "ripped off" consumers for years by charging interest rates of up to 30% for customers carrying balances.
But the Trump administration has yet to provide more details on the proposal, including how it would be enforced, leaving banking executives unclear on what compliance with such an interest rate limit would entail.
Credit card debt has been rising for decades, ebbing after the 2008 financial crisis and later during the COVID-19 pandemic, only to swell to a record high last year. As of the third quarter of 2025, Americans had outstanding credit card balances of $1.2 trillion, up nearly 6% from a year ago, according to the Federal Reserve Bank of New York.
Including both their bank and store credit cards, consumers owe an average of nearly $7,900 on their cards, according to LendingTree.
Banking industry pushback
Financial industry experts question whether Trump has the authority to unilaterally cap credit card rates, while noting the political obstacles to getting a bill imposing a 10% ceiling through Congress.
Speaking at the annual World Economic Forum conclave in Davos, Switzerland, this week, Mr. Trump said he plans to work with Congress to deliver credit card interest relief for Americans. The Trump administration has not detailed how it might penalize credit card issuers that fail to comply with Mr. Trump's directive.
The banking industry has criticized Mr. Trump's proposed cap, saying it could hurt consumers by reducing their access to credit and steering them toward riskier lending products. Reduced consumer spending would cut into economic growth, according to Wall Street analysts.
"We believe Treasury Secretary [Scott] Bessent understands how this could limit credit card lending and expose banks to risk. Both could hurt the economy," Jaret Seiberg, an analyst with TD Cowen, said in a report. "We expect he will quietly push back to ensure there is not a 10% cap, though a higher cap is possible."
Despite the banking industry's opposition to a cap, card issuers are exploring possible solutions that align with Mr. Trump's push to ease the cost of credit, a financial industry source familiar with Bank of America's plans told CBS News.
Bilt, a financial technology company that offers credit card rewards for customers who pay their rent and mortgage payments on time, followed Mr. Trump's announcement by launching three new credit cards with 10% APRs for one year.
