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Bank of America and Citigroup are exploring options to satisfy President Donald Trump’s demand to cap credit card interest rates at 10% for one year. Offering new products with a 10% interest rate would be an easier path for banks to comply with Trump’s demands, rather than reworking the terms and conditions on existing cards.
With a 10% interest rate, the new cards from Bank of America and Citigroup would appeal to consumers who tend to carry a balance, although the banks likely wouldn’t be able to offer the extensive rewards or high limits that cards with higher APRs can offer. Many issuers, including Bank of American and Citigroup, already offer introductory rates for consumers as low as 0% for a period of time.
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