Bilt's New Cards: Unlocking Rewards on Housing, But at What Cost?
Bilt, a financial platform initially catering to renters, is now expanding its horizons to homeowners. With the launch of three new credit cards, Bilt aims to revolutionize how people earn rewards on rent and mortgage payments. But there's a catch—a complicated one.
The Bilt Blue Card, Bilt Obsidian Card, and Bilt Palladium Card are here, and they promise a unique approach to earning rewards. Here's the deal: you can earn points on rent and mortgage payments, but there's a 3% processing fee involved. However, Bilt introduces a new currency, Bilt Cash, to offset this fee.
The Bilt Card Trio: Unlocking Rewards
These new cards replace the former Bilt World Elite Mastercard®, which had no annual fee. Now, two out of the three new cards come with annual fees, but they also offer welcome bonuses. The cards are issued by Column N.A. Bank and serviced by Cardless, marking a shift in the program's structure.
A Breakdown of the Cards:
Bilt Blue Card:
- Annual Fee: $0
- Rent/Mortgage Rewards: Up to 1x points
- Other Spending Rewards: 1x points + 4% Bilt Cash on everyday purchases
- Welcome Offer: $100 Bilt Cash upon approval
Bilt Obsidian Card:
- Annual Fee: $95
- Rent/Mortgage Rewards: Up to 1x points
- Other Spending Rewards: 3x points on dining or grocery + 4% Bilt Cash (up to $25K annually on groceries)
- Welcome Offer: $200 Bilt Cash upon approval
Bilt Palladium Card:
- Annual Fee: $495
- Rent/Mortgage Rewards: Up to 1x points
- Other Spending Rewards: 2x points on travel + 4% Bilt Cash
- Welcome Offer: 50,000 Bilt Points, Gold Status, and $300 Bilt Cash after spending $4,000 in 3 months
The Fine Print:
But here's where it gets tricky. To earn rewards on rent or mortgage payments, you need to pay the 3% fee, which can be covered by Bilt Cash. And this Bilt Cash is earned on everyday purchases, separate from the regular Bilt Points.
And this is the part most people miss: You can't earn Bilt Cash on housing expenses, so you'll need to spend on other categories to accumulate enough Bilt Cash to offset the housing payment fee.
Bilt Cash: The New Currency
Bilt Cash can be redeemed for various rewards, including fitness classes, hotel stays, and even travel points. You can also use it to purchase Bilt Points, but not transfer them to travel partners.
For instance: If your mortgage is $2,000 and you want to earn the full 2,000 points, you'll need $60 in Bilt Cash to cover the fee. If you have less Bilt Cash, you can still earn rewards, but you might need to pay the difference in cash.
Key Takeaways:
- There's no cap on points earned from rent/mortgage spending.
- All personal mortgages are eligible, regardless of the lender.
- Housing payments don't affect your credit limit.
- You can have up to 5 authorized users per card.
- Unlike the previous card, you don't need a minimum of 5 transactions to earn rewards, but you do need to spend on non-housing categories to earn Bilt Cash for fees.
Is Bilt Right for You?
The new Bilt cards offer value, but they require careful consideration. While you can earn rewards on housing, the process is intricate. For a $2,000 mortgage, earning rewards might be feasible, but for higher amounts, the math gets more challenging.
Controversial Opinion: Bilt's new system might be too complex for some, especially with the dual-currency approach.
Existing Bilt World Elite Mastercard® holders can upgrade without a hard pull, but those who opt-out will be transitioned to the Wells Fargo Autograph® Card.
What do you think? Are Bilt's new cards a game-changer or a complicated mess? Share your thoughts in the comments!
