Bilt's new credit cards will feature 10% interest rate, meeting bipartisan call for lower card rates

Company Overview - Bilt, a fintech company based in New York, has announced an overhaul of its credit card offerings, introducing a promotional interest rate of 10% for the first year for all card users [1][4] - The company, valued at $10.75 billion last year, has been expanding its business model beyond earning rewards on rent to include other financial products and partnerships with landlords [2] Industry Context - The credit card industry has been facing pressure regarding high interest rates, with the average rate around 21%, and political discussions around capping rates at 10% for one year [5] - Bilt's decision to cap interest rates aligns with a bipartisan call for solutions to affordability issues, potentially positioning the company as a leader in customer-friendly practices [3][6] Promotional Strategy - The 10% introductory rate applies to new eligible purchases for the first 12 months for cardholders approved for one of Bilt's three new cards, after which rates can exceed 20% [4] - This promotional strategy is similar to other industry practices aimed at attracting new customers, such as zero percent APR offers [6] Political Implications - Bilt's move to cap interest rates may have political ramifications, as it provides a counterpoint to larger competitors like JPMorgan Chase and Capital One, which have resisted similar measures [6]