Bank of America may introduce credit card with 10% APR

Bank of America is currently considering the launch of a new credit card that would align with President Trump’s recent proposal to cap credit card interest rates at 10%. This move comes in response to the President’s criticism of credit card issuers charging high interest rates, which he believes is unfair to consumers.

Bank of America already offers credit cards with initial average percentage rates below 10%, such as the BankAmericard that provides a 0% introductory APR for 18 months. However, once this period ends, the APR can rise significantly based on the cardholder’s credit score, reaching between 14.5% and 24%. With the potential implementation of a 10% interest rate cap, the bank is exploring ways to comply with this directive while still offering competitive credit card products to its customers.

The Trump administration’s proposal for a temporary 10% cap on credit card rates has sparked debate within the financial industry. Some experts question the President’s authority to enforce such a cap and highlight the potential challenges of passing legislation to implement it. Despite the uncertainties surrounding the proposal, Bank of America and other card issuers are contemplating strategies to address the issue of high credit card interest rates.

Credit card debt in the United States has been on the rise, reaching a record high of $1.2 trillion in the third quarter of 2025. On average, consumers owe nearly $7,900 on their credit cards, indicating the significant impact that high interest rates can have on individuals’ finances. In response to these concerns, financial technology companies like Bilt have introduced new credit cards with 10% APRs for one year, in line with President Trump’s call for lower interest rates.

While the banking industry has expressed reservations about the 10% interest rate cap, citing potential negative effects on consumer access to credit and overall economic growth, card issuers are exploring ways to address these concerns. Bank of America and other financial institutions are working towards finding solutions that balance the need for affordable credit with the industry’s profitability.

In conclusion, the debate over credit card interest rates continues to unfold, with Bank of America and other card issuers navigating the complexities of complying with potential government regulations while meeting the needs of their customers. As the financial landscape evolves, it remains to be seen how the industry will adapt to new policies aimed at protecting consumers and promoting financial stability.