Bilt 2.0 Credit Cards Offer Rewards on Mortgage and Rent: What Retail Investors Need to Know

Bilt is introducing new credit cards that offer rewards on rent and mortgage payments, aligning with a growing demand for financial tools that reward essential expenses.
- The new cards include an introductory 10% APR for one year, a direct response to political pressure for lower interest rates and affordability.
- Cardholders must now spend on everyday purchases to unlock rewards on housing payments, which adds complexity but aims to increase card usage according to financial reports.
- Bilt's shift from Wells Fargo to Cardless and new partnerships with mortgage lenders signals a broader expansion of the company's housing rewards ecosystem.

Bilt's new credit card program, known as Bilt 2.0, is making waves in the financial sector by offering rewards on mortgage and rent payments. For the first time, cardholders can earn points on their home-related expenses, a move that's being positioned as a way to reward everyday homeowners while incentivizing higher spending on the cards.

The timing of the announcement—amid political pressure to reduce credit card interest rates—has added another layer of intrigue. Bilt's 10% introductory APR is a direct response to President Trump's call for affordability-focused policies, and it marks a stark contrast to the typical 24%+ APRs seen in the market. Still, after the first year, rates will rise, sometimes dramatically, and the long-term cost of these cards may not be as favorable.

For investors, the question isn't just whether Bilt can attract cardholders. It's whether this bold move will redefine how credit cards are used, especially by a generation that may prioritize stability and affordability over the typical premium travel rewards.

What Is Bilt Card 2.0 and How Does It Work?

Bilt Card 2.0 is a new line of credit cards that includes three tiers: Bilt Blue, Bilt Obsidian, and Bilt Palladium. Each card offers different rewards, annual fees, and benefits, but they all share a common structure.

The key innovation is the dual-currency rewards system, which includes Bilt Points and Bilt Cash. Bilt Cash is earned from everyday purchases and can be used to unlock points on rent and mortgage payments. For example, if a cardholder makes $2,250 in everyday spending, they can earn full 1x points on a $3,000 rent or mortgage payment.

The previous model—where users needed to make just five non-housing transactions a month to earn points—is now replaced with a more spend-heavy system. That means cardholders need to use the card frequently to maximize their rewards, which is both a change and a challenge.

Why Is Bilt Offering a 10% APR for One Year?

Bilt's 10% APR for one year is a direct response to the political climate, specifically President Trump's call for lower interest rates. The move has drawn attention from both the media and the broader credit card industry, especially as major banks like Citigroup and Bank of America have voiced opposition to such caps.

For now, the introductory rate gives Bilt a unique selling point, particularly for younger or budget-conscious consumers who may be looking for more affordable credit options. However, it's important to note that this rate is temporary. After the first year, APRs can jump to as high as 34.74%, which is significantly more than the introductory offer.

From an investor's perspective, Bilt's move appears to be a strategic one. It positions the company as a leader in the affordability movement, which could attract more users and differentiate Bilt in a crowded credit card market.

Bilt 2.0 Credit Cards: Key Changes and Implications

One of the most significant changes in Bilt 2.0 is the shift away from small transactions as a way to earn points. Previously, users could earn rewards on rent just by making a few small purchases each month. That's no longer the case. Now, users must spend a considerable amount on the card to unlock full rewards.

This change is part of Bilt's effort to position itself as a primary rewards card, not just a housing-focused one. The company is clearly trying to compete with more traditional rewards cards while still offering its unique housing incentives.

The shift in card operations—moving from Wells Fargo to Cardless—also signals a broader transformation in how Bilt is approaching its financial offerings. Cardless, a fintech platform, is providing the technological backbone for the new cards, which allows for a more seamless digital experience.

For investors, this means Bilt is evolving beyond its original identity as a rent-based rewards platform. The company is now expanding into the broader credit card market, which has significant growth potential—if it can retain and grow its customer base.

What to Watch Next

The key for Bilt will be whether users are willing to spend more on these cards to take advantage of the housing rewards. If they are, it could mean a significant increase in transaction volume and, by extension, revenue.

On the other hand, if the complexity of the new reward system deters users, Bilt may struggle to maintain its current level of engagement. The company will need to provide clear explanations and educational resources to help users understand the new system and how to maximize their rewards.

Additionally, the political debate around credit card affordability is far from over. If the 10% APR cap becomes a regulatory reality, Bilt's current model could become more sustainable—or it could lose its edge if major banks start to follow suit.

For now, Bilt is pushing forward with its new cards and its new rewards system. The question for investors is whether this is a temporary strategy or a long-term shift in how credit cards are marketed and used in the U.S.