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News: Will We See Trump's 10% Credit Card Rate Cap? - Credit-Land.com

Recently President Trump posted on social media a call for a one-year 10 percent cap on credit card interest rates. He has also doubled down on the proposal, saying banks that didn't comply by January 20 would be in violation.

A 10 percent annual rate isn't something many consumers have seen for years on their credit cards. However, it's not clear how Trump plans to cap card fees without an executive order, voluntary action, or Congress first passing legislation. Currently, there is no U.S. law capping credit card rates. A bill introduced last year that would cap rates at 10% for five years has stalled in Congress.

The biggest U.S. banks, including JPMorgan Chase and Citigroup, showed no signs of following President Donald Trump's mandate of a 10% cap on credit card interest rates. More than that, some banks warned that rather than offering cards at a 10% interest rate, they would simply close many consumers' accounts. This will be disastrous for lower-income consumers.

Bankers are also warning that the president's cap on credit card interest rates would likely result in a significant slowdown in the U.S. economy.

Credit card affordability is another important issue. If the caps are brought down, credit will become restricted, meaning fewer people will get credit cards, and the balance available to them on those credit cards will also be restricted.

The situation with the 10% cap is unclear, and many officials are still in the dark. However, despite all the downsides, there is at least one credit card that offers a 10% annual interest rate for one year - that's the recently launched Bilt Card 2.0.

Recently Bilt introduced three new credit cards - Bilt Blue Card, Bilt Obsidian Card, Bilt Palladium Card - with an introductory 10% APR for new card purchases. All three credit cards offer a 10% introductory rate for one year, which is good, but a 0% intro APR for one year might be much more appreciated on the new credit cards.

tags : Credit Cards Interest Rates Low Interest

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All rates and fees, and other terms and conditions of the products mentioned in this article/post are accurate as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.