Bank of America and Citigroup weigh 10% credit card rates after Trump’s push
Major US banks are exploring new credit card options with lower mortgage rates. Bank of America and Citigroup are considering 10% rate cards after a proposal by former President Donald Trump. The move follows earlier action by smaller lenders like Bilt, which already introduced similar products last year.
Trump’s proposal was announced on 20 January 2026, pushing banks to reduce credit card interest rates. Some institutions, including Bilt, responded quickly by launching cards with 10% rates for a one-year trial period.
Bank of America and Citigroup are now assessing whether to follow suit. Executives at both firms have acknowledged the need to address affordability concerns for customers. Yet they also stress the importance of balancing these with financial risks and profit margins.
The challenge lies in keeping default rates low while offering competitive terms. Bank leaders have made it clear that any new products must remain sustainable for the business. Discussions are ongoing, but no final decisions have been made yet.
If introduced, the 10% rate cards would mark a shift in how major banks structure credit offers. Customers could see more affordable borrowing options, though lenders will closely monitor financial risks. The outcome will depend on whether banks can maintain profitability while meeting the proposed rate.
