Bilt Rewards granted permission to use the image. Photo by Bilt Rewards/MastercardRent is the largest monthly expense for millions of Americans. However, rent payments do not earn rewards or improve credit scores. Most people have to pay rent by check. Bilt Rewards is the first credit card to pay rent, and it does so without any third-party fees. Is it worth the effort? Let's take a look at all the pros and cons.AdvertisementWhat is the working principle of Bilt Rewards?Bilt Rewards is a loyalty program and rewards credit card. You can use the app to pay rent directly if your rental property is part of the Bilt Rewards Alliance (over 2,000,000 units). Each payment earns 250 points (each point is valued at 2.11 cents per $1, according to The Points Guy).When you use the app to access the rewards card, you can pay your rent with no service fees (usually between 2% and 3%). Even if your unit does not belong to the network, the company will send your landlord payment either by direct ACH bank transfer or as a check mailed via UPS. This is great as most landlords won't accept credit cards payments due to transaction costs. If they do, these costs are passed onto the renter.There is no annual fee and multipliers of reward points based on spending. The first month offers a little bit of a bonus: You can earn 3x points for rent above 10,000 points and 2x points for all other non-rental spending. Non-rent spending is eligible for 1 point per dollar. Nerdwallet states that you can get additional multipliers if the card is used to pay rent. However, these are based on non rental spending targets. The system works like this:Blue Status: Spend $250 on qualifying non-rental purchases in a single month to earn 1 point for every $2 you spend on your next rent payment. Silver Status: You will earn 1 point for every $1 you spend on qualifying non-rental purchases within a calendar month. Gold Status: You will earn 1.5 points for every $1 you spend on qualifying non-rental purchases over the course of a calendar month if you spend $2,000 on them. Platinum Status: You will earn 2 points for every $1 you spend on qualifying non-rental purchases when you spend $3,500 within a calendar month.You can redeem your points for many things such as airfare, hotels, home decor, art, and classes at the gym. You can use your points to pay rent or part of a downpayment for a Fannie Mae or FHA mortgage. The card is part the Mastercard World Elite program and offers other perks such as cell phone insurance, discounts at merchants such as DoorDash and Lyft, and a 24/7 concierge.The Bilt card can also be used to stop rent payments if the user does not have cash savings in a linked account. This is because paying rent with a high interest credit card can lead to debt traps for many borrowers. The feature will not be available to borrowers who are more risky.AdvertisementIs it worth the Bilt Rewards card?Non-rent spending cards with lower 1x reward multipliers are less than other rewards cards that offer flat rates of 2x. A bonus is paid based on how much rent you pay, so you can claim rewards for an expense that many renters spend thousands of dollars each month. These payments can help you improve your credit score than if you pay with a check.AdvertisementThe amount of your rent and everyday expenses will determine whether the combined rewards are worthwhile. The lowest Blue tier would give you a small amount of value for non-rental spending, but you would also receive $30 back based upon your rent payment. It's not great, but it is comparable to other rewards cards. The rates will be more attractive if you spend a lot of money on rent or other expenses each month. However, it is not clear if you are eligible for the Platinum Tier rates by spending $3,000. To determine if this card is worth the cost, you will have to do the math.However, the program is worth considering if you are already paying rent with a third-party app that charges 2-3%. If you live in a Bilt Reward Alliance property, you should join the rewards program to get a credit card and avoid transaction fees.AdvertisementHow can I get my card?The Bilt rewards and card program are currently invitation-only. However, you can register here to receive an invite. You will receive an invitation in the next few weeks if you are accepted.Advertisement
