Bilt caps credit card rates at 10% for one year, citing bipartisan push for lower costs

Fintech company Bilt announced Wednesday it will cap interest rates on all new credit cards at 10% for the first year, positioning itself ahead of a bipartisan push to reduce consumer borrowing costs. The New York-based startup, valued at $10.75 billion, unveiled three new card products at an event atop One World Trade Center.

The move arrives one week after President Donald Trump called for a one-year, industry-wide 10% cap on credit card interest rates — a proposal the credit card sector has resisted — and gives politicians a concrete example they can point to when pressing larger issuers to follow suit.

The rate and what it covers

The 10% annual percentage rate applies as an introductory rate on new eligible purchases for cardholders’ first 12 months, Bilt said. After that, rates on purchases, balance transfers, and cash advances can run well above 20% — in line with the broader market, where the average credit card interest rate hovers around 21%, according to the Associated Press.

Bilt CEO Ankur Jain said the company decided on the cap to meet what he described as the “bipartisan call for a solution” on affordability issues facing many of its customers. Jain also said the move could attract new customers.

“If (a credit card rate cap) is going to happen, we’d rather be at the forefront,” Jain said.

Political backdrop

Trump called for the industry-wide cap the previous week. Researchers at Vanderbilt University estimated that Trump’s proposal would cost the credit card industry $100 billion. Left-leaning lawmakers including Rep. Alexandria Ocasio-Cortez of New York and Sen. Bernie Sanders of Vermont have long supported capping credit card rates.

Bilt is small compared to industry giants JPMorgan Chase, Capital One, and American Express. The company’s voluntary action nonetheless gives politicians a ready argument: if a fintech startup can offer 10% rates to all cardholders, they can ask why its larger competitors are unwilling or unable to match it.

Three new card tiers

Bilt introduced three products following what it described as a “good, better, best” model. The Bilt Blue Card carries no annual fee. The Bilt Obsidian Card, which concentrates rewards on dining and grocery spending, carries a $95 annual fee. The Bilt Palladium Card, at $495 per year, offers $400 in annual hotel credits and $200 in Bilt Cash — a points currency redeemable within Bilt’s merchant network.

All three cards also continue Bilt’s existing transfer partnerships with several airlines and hotels through its Bilt Rewards points program.

A split from Wells Fargo

Bilt’s prior credit card partnership with Wells Fargo is ending in February, three years before its 2029 scheduled expiration in what the AP described as an acrimonious departure. The Wall Street Journal previously reported that Wells Fargo lost $10 million a month on the Bilt card. The new cards are issued through a partnership with Cardless, a credit card operations company, with Column N.A. as the issuing bank.

Expanding beyond rent

Bilt originally built its business around letting renters earn rewards on monthly rent payments. The company says roughly one in four landlords now accept Bilt and describes itself as the largest reporter of on-time rental payments to credit bureaus. It has been expanding into rewards for mortgage payments and is positioning itself as a financial intermediary connecting local merchants, landlords, and renters.