Bilt Economics Revealed: Wells Fargo Losing Money?

The Bilt Mastercard allows consumers to earn points on rent payments without incurring fees through a unique partnership with Wells Fargo. Here's how it works:

1. Bilt Rewards program: The Bilt Mastercard is part of the Bilt Rewards program, which allows qualifying U.S. renters to earn rewards each time they pay rent through the Bilt app (up to 100,000 points in a calendar year). Even if you don't live in a qualifying Bilt Rewards Alliance property, you can still earn 1X Bilt Rewards point per dollar on your rent (on up to $100,000 in rent payments every year) with the Bilt Mastercard35.

2. Rent Rewards Account: If your landlord allows you to pay rent online, Bilt will provide you with a Rent Rewards Account. You'll use a unique checking and routing number found in the Bilt Rewards app to enter into your online portal as an ACH/e-check payment. This way, you can pay your rent without any transaction fees.

3. Paying rent via check: If your landlord doesn't accept credit cards or online payments, you can still pay with your Bilt Mastercard through the app, and Bilt will send a check on your behalf2. This process takes five to seven business days.

4. Earning points: With the Bilt Mastercard, you earn 1X points on rent payments without the transaction fee (up to 100,000 points each calendar year), 3X points on dining, 2X points on travel, and 1X points on other purchases345. To earn points on rent, you need to make at least five transactions per billing cycle on the card.

5. No transaction fees: The Bilt Mastercard doesn't charge any transaction fees for rent payments, making it an attractive option for renters1.

In summary, the Bilt Mastercard allows consumers to earn points on rent payments without incurring fees by partnering with Wells Fargo, providing a Rent Rewards Account for online payments, and sending checks on behalf of the cardholder for properties that don't accept credit cards or online payments. This unique arrangement makes it possible for renters to earn rewards on one of their biggest monthly expenses, even when their landlords don't accept credit cards.

The Bilt Mastercard offers several features that make it appealing to consumers:

1. No Annual Fee: The Bilt Mastercard does not charge an annual fee, making it an attractive option for budget-conscious consumers.

2. Rewards on Rent Payments: Cardholders can earn rewards points for rent payments without incurring any transaction fees. This is a unique feature that sets the Bilt Mastercard apart from other credit cards.

3. Competitive Earnings Rates: The card offers a competitive rewards structure, with 3 points per dollar spent on dining, 2 points per dollar on travel, and 1 point per dollar on rent payments (up to 100,000 points per year).

4. Flexible Redemption Options: Points earned with the Bilt Mastercard can be transferred to a variety of airline and hotel partners, providing flexibility and potentially high-value redemptions.

5. Additional Benefits: The Bilt Mastercard provides additional benefits such as cell phone protection, rental car coverage, and travel protection, which are rarely offered by no-annual-fee cards.

6. No Foreign Transaction Fees: The card does not charge foreign transaction fees, making it a good option for international travel.

7. Rent Day Promotions: On the first day of each month, Bilt offers double points on rent payments, dining, and travel, as well as other bonuses and discounts5.

These features make the Bilt Mastercard an attractive option for renters and consumers who spend significantly on dining and travel.