Bank of America, Citi Weighing New Credit Cards With 10% Rate

Summary

Katherine Doherty reports that Bank of America and Citigroup are exploring new credit cards with a 10% interest rate to appease the Trump administration. The banks face pressure to address affordability but must weigh the economics of lower rates and higher default risk. The discussion also notes that premium card issuers like Chase and American Express remain supported by affluent customers willing to pay high annual fees for rewards.

• Bank of America and Citigroup are weighing 10% rate credit card products.
• The banks are responding to Trump administration pressure on affordability.
• A 10% rate raises concerns about defaults and profitability.
• Built already launched a 10% rate card, putting banks behind.
• Premium cards from Chase and American Express cater to affluent, fee-paying customers.
• Lower credit lines could reduce consumer spending and hurt the economy.
• The segment is mainly a regulatory and competitive news update.