Bilt Launches New Credit Card Lineup with Introductory 10% APR amidst Trump’s Interest Rate Cap Proposal

In response to recent calls from Donald Trump to limit credit card interest rates to 10%, Bilt Rewards has introduced a new line of credit cards that offer this rate for the first year of use. Through the newly unveiled 'Bilt 2.0' series, cardholders can benefit from an initial 10% annual percentage rate (APR), marking Bilt's proactive approach amidst evolving legislative discussions.

Overview of Bilt's New Card Offerings

Bilt, recognized for enabling rewards on rent and mortgage payments without the fees typical of many credit card schemes, has launched three distinct cards. These include:

1. Bilt Blue Card – Available at no annual fee.
2. Bilt Obsidian Card – Comes with a $95 annual fee.
3. Bilt Palladium Card – Carries a $495 annual fee.

After the introductory period, cardholders will face higher interest rates, adjusted between 26.74% and 37.47%, contingent on the specific card chosen.

Trump's Interest Rate Cap and Legislative Dynamics

Trump's suggestion to cap credit card rates at 10% was shared in a Truth Social post, wherein he vowed to end what he perceived as excessive charges by credit card issuers. Nonetheless, he will need legislative backing, as such a cap cannot be enacted by executive action alone.

Senators Bernie Sanders and Josh Hawley have taken legislative action, presenting a proposal to establish a 10% rate limit for a period of five years. Trump has also engaged with influential legislators like Senator Elizabeth Warren on the matter.

Nevertheless, House Speaker Mike Johnson has expressed reservations, suggesting that the policy may have unanticipated consequences, such as curtailing lending or limiting available credit amounts.

Varied Business Community Reactions

Business leaders have shared differing views on Trump's rate cap proposition. Mike Mason, Chief Financial Officer of Citi, is critical, arguing that such a cap could limit credit access to those in need and potentially harm economic performance.