Bilt offers credit cards with temporary 10% APR after Trump proposes interest-rate cap
Financial Technology Company Bilt Introduces New Credit Cards with 10% Interest Rate Cap
On Wednesday, Bilt, a financial technology company known for its credit cards that offer rewards for rent and mortgage payments, unveiled three new credit cards that come with a unique feature – a cap on interest rates at 10% for the first year. This special offer will only apply to new purchases made with the cards.
The introduction of these new credit cards follows President Trump’s recent proposal to set a 10% limit on the interest rates charged by credit card issuers. While the proposal faced opposition from major banks such as Citi and JP Morgan Chase, Bilt seized the opportunity to position its cards as a solution for Americans struggling with affordability challenges.
According to Ankur Jain, the founder and CEO of Bilt, this initiative is a significant win for renters, homeowners, and all Americans facing financial constraints. The company aims to address the bipartisan call for a solution to the rising cost of living in the United States.
With a valuation exceeding $10 billion, Bilt has quickly become a key player in the financial technology sector since its inception in 2019. The company collaborates with landlords to offer cardholders rewards on everyday transactions like rent payments.
The newly introduced credit cards come in three tiers, all of which have an APR cap of 10% for the first year. The Bilt Palladium Card, the top-tier option with a $495 annual fee, offers $400 in annual credits for hotel stays and $200 in Bilt Cash, redeemable within the Bilt ecosystem. The Bilt Obsidian Card, with a $95 annual fee, rewards users for restaurant and grocery expenses. The entry-level card has no annual fee and provides cash back and points on select purchases.
Comparatively, the average credit card APR in the U.S. is approximately 24%, with rates reaching up to 36% for individuals with poor credit. Research indicates that President Trump’s proposed interest rate cap could potentially save consumers $100 billion while impacting credit issuers financially.
