Bilt Unveils New Credit Cards with Interest Rate Cap
Bilt, a financial technology firm that allows users to earn rewards on rent and mortgage payments made via credit cards, announced on Wednesday the launch of three new credit cards featuring a capped interest rate of 10% for the first year. This offer is limited to new purchases only and comes shortly after President Trump made headlines this week.
Major banks, including Citi and JPMorgan Chase, quickly expressed concerns, arguing that such a cap could restrict credit access for some consumers, potentially causing harm to the U.S. economy. In contrast, Bilt, based in New York, highlighted its card as a beneficial financial tool for Americans grappling with rising costs.
“This is a win for renters. This is a win for homeowners. This is a win for Americans,” stated Ankur Jain, Bilt’s founder and CEO, emphasizing the card’s potential to help those facing financial challenges.
Since its inception in 2019, Bilt has grown to a valuation of over $10 billion, partnering with landlords to help cardholders earn rewards on everyday expenses like rent payments.
Jain mentioned that the new credit card aims to address “bipartisan demands for solutions” amid the ongoing cost-of-living crisis many Americans are experiencing. He noted, “If the U.S. were to implement an interest rate cap, we would prefer to be at the forefront of it.”
Bilt offers three tiers of credit cards, each featuring an APR capped at 10% for a year. The premium Bilt Palladium Card, for an annual fee of $495, provides members with $200 in Bilt Cash (redeemable within their ecosystem) along with a $400 hotel credit. The mid-tier Bilt Obsidian Card has a $95 annual fee and allows users to earn rewards on dining and grocery purchases. The basic tier carries no annual fee and offers cash back and points on select transactions.
Typically, the average interest rate for credit cards is around 24%. Individuals with poor credit may face rates as high as 36%. According to a study from Vanderbilt University, the implementation of an interest rate cap could result in savings of $100 billion for consumers and credit issuers.
