Bank of America and Citigroup explore new credit cards with 10% interest rates to appease President Trump’s proposed cap, amid banking policy debates on affordability versus lending risks.
America’s biggest banks are quietly studying whether they can offer cheaper credit cards, after President Trump publicly pushed lenders to lower borrowing costs for consumers.
According to reports on January 22, 2026, Bank of America and Citi, both known for charging credit card interest rates of 20% to 30%, are separately exploring cards with rates as low as 10%. The move follows a Trump social media post calling for relief, even though the message carries no legal force and has drawn resistance from the banking industry.
Bank of America CEO Brian Moynihan has acknowledged that the bank is working on lower-interest options for customers with strong credit histories. Citi has not commented. One competitor, Bilt, is already testing the idea, offering a card with a 10% APR for the first year.
Trump Cap Sparks Bank Dilemma
President Trump has framed his push for lower credit card rates as a way to protect consumers from what he calls “rip-offs.” But big banks warn that cheaper credit may come with trade-offs.
JPMorgan Chase CEO Jamie Dimon has said that forcing rates lower could make banks less willing to lend to riskier borrowers, potentially slowing parts of the economy. Banking groups also argue that rewards programs would likely be scaled back and approvals made more restrictive.
If Bank of America and Citi move ahead with 10% cards, they are expected to strip out perks and focus on safer customers, since such low rates leave little cushion to cover losses and day-to-day costs. Investors appeared reassured by the limited scope of the idea, pushing shares of both banks up about 1% after the news.
Selective Offerings Target Prime Borrowers
The new credit cards under discussion would closely resemble Bilt’s rent-rewards card, aimed at borrowers with top-tier credit and offered only for a limited time. The idea is to test lower rates without exposing banks to large losses. Bank of America CEO Brian Moynihan said talks with the Trump administration are continuing.
Many in the banking industry see the strategy as a stopgap rather than a real shift, one that helps protect average card interest rates that still hover near 21%. Executives at Wells Fargo and Citi have warned that narrowing access to credit could ultimately reduce consumer spending.
Policy Push Reshapes Consumer Finance
There is no formal rate cap and no backing from Congress, but the pressure alone is forcing banks to respond. With inflation still weighing on household budgets, lenders are walking a fine line between appearing consumer-friendly and protecting their bottom lines.
If demand continues to build, today’s narrowly targeted 10% cards could gradually expand, changing how credit card companies compete with one another.
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