Significant modifications are on the horizon for Bilt, the platform recognized for allowing users to accumulate points by paying their rent without incurring any fees. It has been established that Bilt will phase out its singular Wells Fargo credit card and shift to offering three Cardless credit cards. Additionally, the method for rewarding members for paying rent is also set to change.
The anticipation has concluded, and all the specifics of the new Bilt Card 2.0 have just been unveiled. Nearly everything is undergoing changes, from how rent is rewarded to the rewards frameworks and benefits of the credit card(s). Let’s delve into all the specifics.
How Bilt will allocate points for rent and mortgages
Before discussing the specifics of the new credit cards, let’s examine how rent rewards are evolving. To be straightforward, regardless of which credit card you possess, you’ll need to charge an average of 75% of your rent or mortgage payment to the card to earn 1x points.
To elaborate, historically, Bilt Card holders have been permitted to pay their rent without a fee while earning 1x points on that expenditure, up to $50,000 in rent payments each year. The only stipulation was that you had to complete five transactions per billing cycle on the Bilt Card to unlock that.
The expectation was that individuals would transition a significant portion of their spending to the Bilt Card. However, as you might suspect, that wasn’t consistently the reality. Instead, many individuals would execute five minor transactions each billing cycle while collecting points for rent, which wasn’t genuinely a sustainable model.
Considering this, the system is undergoing a complete overhaul. Here’s the good news:
– Members will now earn points for both rent and mortgage payments (mortgage rewards are a new addition).
– Members will have the option to pay for multiple properties and accrue points (as opposed to being restricted to one property).
– There will no longer be a cap on the annual rewards members can obtain (previously, there was a $50,000 annual limit).
As you would anticipate, there’s a significant stipulation — you’ll now need to “earn” the capacity to pay your rent or mortgage via card if you wish to earn points without incurring fees. Specifically:
– All three Bilt credit cards will provide 4% in Bilt Cash on expenditures, alongside the standard rewards structure (Bilt Cash is a rewards currency specific to Bilt).
– $3 in Bilt Cash will equate to 100 Bilt points on your overall rent and mortgage payment, reflecting a rate of 1x points; in other words, you’re effectively paying a 3% “fee” (in Bilt Cash) for your payment.
– Bilt Cash will expire on December 31 of the year it was accumulated, although $100 in Bilt Cash can be carried over to the following year.
The structure of this seems unnecessarily convoluted to me, as it appears the figures could have been simplified a bit. Nevertheless, the basic concept is that you’ll earn 4% back in Bilt Cash towards those payments on your spending, and then you’ll have to pay a 3% fee with those Bilt Cash rewards to complete your payment.
Clearly, this marks a significant change from the previous system. To illustrate it through an example:
– If you charged $15,000 on a Bilt card, you’d receive $600 in Bilt Cash (since you earn 4% back in Bilt Cash on all expenditures with all cards).
– $600 in Bilt Cash would permit you to benefit from $20,000 in fee-free rent or mortgage payments while earning 1x points.
You’ll want to allocate 75% of your rent or mortgage amount to optimize value.
Details of the three new Bilt Cardless credit cards
Bilt is moving from a single Wells Fargo credit card to three Cardless credit cards. The products will be positioned at notably different price points, so let’s detail those.
Before proceeding, I’d like to mention that the sign-up bonuses mentioned below are available for a limited period and applicable to both new and transitioning customers. Furthermore, you can only hold the primary cardmember status on one Bilt credit card, so applying for multiple of these cards isn’t permitted.
No annual fee Bilt Blue Card details
The no annual fee Bilt Blue Card will be the most fundamental card in the lineup, and the least captivating. It essentially grants you access to earn rewards for rent and mortgage payments with Bilt, without many additional benefits. It will have the following perks and rewards structure:
– A welcome bonus of $100