Bank of America is reportedly considering the launch of a new credit card featuring a 10% annual percentage rate (APR), in line with President Trump’s recent push to temporarily cap credit card rates at 10%. This move comes as part of the broader initiative to address concerns about high credit card interest rates, which have continued to climb in recent years.
Currently, Bank of America offers cards with introductory APRs as low as 0% for the first 18 months. However, once the promotional period ends, interest rates can rise significantly, ranging from 14.5% to 24%, depending on the cardholder’s credit score. Trump’s call for a 10% interest cap, which he made earlier this month, aims to ease the burden on consumers facing high credit card debt, which currently stands at over $1.2 trillion in the U.S.
Challenges and Pushback from the Banking Industry
While the idea of capping credit card APRs has gained attention, the banking industry has expressed concerns about the potential negative impact on consumers and financial institutions. Critics argue that a 10% APR cap could limit access to credit, driving consumers toward riskier lending products and potentially hurting economic growth by reducing consumer spending.
Although the Trump administration has yet to provide specific details on how such a cap would be enforced, banking executives remain wary of how compliance would affect their operations. Financial analysts, including Jaret Seiberg from TD Cowen, suggest that Treasury Secretary Scott Bessent may work to push for a higher APR cap, mitigating some of the potential risks associated with such a drastic change.
A Growing Trend in Credit Card Debt
Credit card debt in the U.S. has been steadily rising, reaching record highs as of 2025. As the Federal Reserve Bank of New York reported, outstanding credit card balances stood at $1.2 trillion in the third quarter of 2025, a nearly 6% increase from the previous year. Additionally, the average American owes nearly $7,900 in credit card debt, which has led to growing concern about the long-term financial health of consumers.
In response to the public outcry surrounding high APRs, financial technology companies like Bilt have also taken steps to address the issue. Bilt launched a series of credit cards offering 10% APR for the first year, following Trump’s announcement.
Will the 10% APR Cap Become a Reality?
As President Trump works with Congress to explore solutions for capping credit card interest rates, the proposal has sparked intense debate within the financial sector. While Bank of America is exploring potential options, the broader challenge remains in determining the long-term effects of such a cap on credit availability and economic growth. For now, consumers may soon see more options for lower-rate credit cards as the debate continues.
