Financial technology company Bilt has launched three new credit cards that feature an interest rate cap of 10% for the first year, aimed particularly at consumers facing financial challenges. This announcement follows a recent proposal from former President Donald Trump advocating for a 10% ceiling on credit card interest rates, which has sparked controversy among major financial institutions like Citi and JP Morgan Chase. These banks have expressed concerns that such a cap could restrict access to credit for some consumers and potentially harm the U.S. economy.
In contrast, Bilt, which focuses on providing rewards for rent and mortgage payments, is seizing the moment to position its offerings as beneficial financial products for Americans grappling with high living costs. “This is a win for renters. This is a win for homeowners. This is a win for Americans,” stated Ankur Jain, the company’s founder and CEO. Jain pointed out that the new credit cards align with a bipartisan desire to address the escalating cost-of-living issues faced by many Americans.
The newly introduced credit cards come in three tiers, each capped at a 10% APR for the first 12 months. The premium option, the Bilt Palladium Card, has a $495 annual fee and provides cardholders with $400 in annual credits for hotel stays, along with an additional $200 in Bilt Cash, which can be redeemed through partnered businesses. The mid-tier Bilt Obsidian Card, which costs $95 annually, allows users to earn rewards on grocery and restaurant purchases. Lastly, the entry-level card comes without an annual fee and offers cash back and points on select transactions.
Currently, the average annual percentage rate (APR) for credit cards is approximately 24%, with those holding poor credit facing rates as high as 36%. Studies from Vanderbilt University suggest that Trump’s proposed interest rate cap could save consumers about $100 billion, though it would impose significant costs on credit issuers.
Positioned as a disruptive force in the financial technology landscape, Bilt stands out with its partnerships with landlords, allowing users to earn rewards on everyday expenses such as rent. As the company continues to grow since its inception in 2019—with a valuation exceeding $10 billion—it is looking to play a pivotal role in the ongoing discussions surrounding interest rates and consumer finance.
