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Sometimes a question really just gets it. Is the Bilt World Elite Mastercard too good to be true?? How can they make money giving so much to cardmembers?
Let’s try to work through this, noting that I’m doing some speculation here. But first the key value propositions.
Bait and switch, I signed up for Bilt and linked my Hyatt account for the status match challenge and apparently I didn’t click an extra link that didn’t appear on the app so I’m not eligible for the match.
I’ve got to be honest, I just don’t get the hype around Bilt. It feels like the best value for the card is if you don’t have opportunity costs in play (someone who only wants *one* Credit Card). But if that’s the case, it’s almost certainly because you don’t have time or desire to engage in manufacturing spend and/or chasing optimal categories. So the only people really suited for the card are also the least likely to get the most value out of it? I suppose I should caveat all that with “other than renters”, so I guess I don’t get the hype beyond that.
And I’m not posting this to be a troll, I just feel like I’m missing something obvious. Most of the amazing features of this card are comparable to multiple other cards, except you could have signup bonuses coming out your ears AND those great benefits from other cards…Unless you don’t want to go through the hassle…in which case you probably don’t want to go through the hassle of staging all your purchases for “rent day” and optimal categories for the Bilt Card, etc…What am I missing?
Completely agree with Jeff’s comment. Even though the bonus categories are very good (and the transfer partners are excellent), at the end of day, organic spend simply doesn’t move the needle. So what if you earn an extra few thousand points on, say, dining expenses – without paying an annual fee – you can’t manufacture spend on this card without being shut down. You can get comparable bonus category rates on Chase and AmEX and Citi cards and earn points at scale by MS. That being said, I’m impresed by the recent Hyatt promotion. Part of the Bilt business model for the card seems to be shutting down unprofitable customers.
I’m with Jeff
Citi Prestige was amazing when it started. I enjoyed it for 2 years before it went down the drain. Same thing will happen here.
I believe this card is underwritten by Wells Fargo? If that’s true, then no thanks. We all know the shenanigans they’ve been up to over the years.
@jeff
The main selling point for this card is for being able to pay rent without a transaction fee. I live in a very HCOL area. Most of my friends and I are paying 2-4k a month in rent. Many of us rent from small-time landlords that won’t accept credit card payments. Some don’t even accept online payments. The card can also be used for utilities fee-free, and some of those charge a % fee for credit card transactions.
I’ve also used the card for tax payments on rent day to earn 2 points per dollar. There’s not really a card in my portfolio that offers that kind of return on a no-fee card and I don’t own a small business so I’m not going to cycle business cards SUBs like some.
Everything else is icing on the cake. The 3x for dining works on, for example, Starbucks reloads, so if you reload your Starbucks balance on Rent Day, you’ll get x6 points.
@Gary, I think the other thing the helps with the cost side here is the lack (generally) of SUB/acquisition costs (which hammered CSR and Venture X). I wonder if this article could address how much less they spend on this and how that helps them spend on other methods of continual engagement with the program in a way that stimulates activity and tries to get those (vast majority of) folks with 1-3 cards to have it top of wallet for everything?
I think it is pretty simple. The more Bilt grows its subscriber base, especially those paying rent with it, the more leverage they have to sign favorable contracts with large PE/REIT landlords to collect rent payments. They are also collecting valuable consumer data which has its own value. If they can collect credit card fees along the way it is gravy. You don’t have to read real estate news daily to see that PE firms are buying up single and multi family real estate en masse. The loyalty program is the shiny object to drive sign ups through viral marketing (like Gary). Promotions like today’s FB 2x transfer get the word out. It is an innovative business model, but it is dependent on an engaged subscriber base that needs to grow fast (and seems to be).
@Nick I agree with Nick that the lack of SUB is what enables them to be able to give out so many monthly bonus spend points. Hypothetical example: They could give out 7,500 bonus points per month to a customer in lieu of a 90K SUB – but there is a good possiblity that they will pay out far less than that for the vast majority of customers. So they can get ahead knowing that there will be a lot of people (probably most) not maximizing their bonus potential.
I have been following this closely as it is very intriguing. That said, I wonder if this will somehow evolve to include mortgage payments. Not everyone rents. Even in high COL areas such as South Florida it would be amazing to have a Bilt like program to include mortgage payments.
Check out those Wells Fargo interest rates before you start spending!
Bilt has just two use case scenarios:
1)Manufactured spending.
2) Tenants with big rent payments.
That’s funny Zach. You fail to follow the protocol so it is bait and switch. Did you also call to tell them how terribly unfair they are? Next time you are staying at a hyatt, look up, I am in that suite above you.
@ Gary — We got the “secret” SUB several weeks ago. Otherwise, this card is uselss. Waiting for 100% transfer bonus to occur again (life the one to AF) so we can cash out, but I presume that won’t happen.
“Additional ways to earn in the program: like earning points for Lyft rides (they’re the most lucrative Lyft partner for this in my view)”
C’mon Gary, you KNOW that isn’t true. CSR gives a 10% Lyft rebate and even CSP & Freedom get 5%.
I really hope Wells Fargo is paying you a king’s ransom to nonstop promote this card. Meanwhile, many of us have been screwed by WF in the past and would never sign-up for this card. I’ll also add one new theory on how this card can be so great: WF goes back to illegally opening additional accounts in the customer’s name, without their permission…???
Chase points are over and above the points you can earn with a partner of your choice:
1. Hilton
2. Delta
3. Bilt
Bilt is the best choice.
I agree Wells Fargo is ass though. Big oversight by the Bilt team. The target demographic is very ethics-conscious and Wells Fargo is poo-covered ass ethics.
1. Primitive systems for cost savings. You can’t dispute a charge online. You have to make a phone call and wait on hold. And I bet the disputes are not resolved in your favor as often as Amex would.
2. Buggy points transfer mechanisms. During the recent Flying Blue promo some people couldn’t get their transfers through. Bilt says they honored the promo for those people, even after expiration, but the bottom line is I have never heard of Chase or Amex point transfers falling through.
3. The 2x travel is very limited compared to Chase. A lot of things don’t count as travel.
4. No merchant offers, no small perks like Chase Sapphire Preferred’s $50 annual hotel credit.
Does anyone know if the landlord is furnished a 1099 tax form from Bilt?
My question is, why would anyone build 7 figure point balances? The longer you hold points, the more they devalue. 2 years ago I could book the Park Hyatt Beaver Creek over Christmas/New Years time for 30k points per night. This same trip now costs 45k points per night. Point balances should be spent as soon as possible.
We spend $40K in rent and use Bilt. No issues and it’s been a great supplement to our travel point balances. After 20 years of owning a home and now being a renter this is a nice perk especially with no annual fee. Naysay if you will, for those who fit the niche it works.
If people are paying their rent with this, they are probably less likely to miss payments to this card overall. ie if someone’s not able to cover all of their bills, this card is most likely to get paid down first. Or renters on a tight budget are more likely to redeem points to pay rent – the ideal redemption as far as Bilt is concerned.
Further, for people who DO carry interest, the interest-bearing balances will probably be higher.
I can see how Wells Fargo would be happy with this product.
Just paying rent alone is free points. My office rent is $12,000 a month, so I just paid a few months with it and hit the max. It doesn’t have to be personal rent.
I don’t rent, but signed up for Bilt as I’m able to pay my HOA fees and utility bills with it and still earn points. Also use it to pay for Fios home internet and my cell phone bill, and keep the auto-pay discounts for both. Bilt also offers $800 in cell phone insurance from theft or damage if you pay your cell phone bill with it.
Thanks to Bilt I am able to earn points on every monthly expense except for my car payment and mortgage.
Gary–I happen to like Bilt as well, and my entire family has Bilt cards, even though none of us pay rent. I have received significant value from the program. I know you are or have been an advisor to Bilt. Are you suggesting some concern when you write: “you take advantage of that WHILE IT LASTS. It does SEEM that they manage to make the economics work, which just SUGGESTS that outsized value can continue once you get their card.” ? That’s a triple caveat from someone who has a lot more knowledge about the Bilt program than we do.
@DSK – I have just watched a lot of programs over decades, and boy Bilt seems to offer tremendous value. I do not have any indication of changes on the horizon. And they say the value prop works for them. But doesn’t it seem too generous, even a bit?