Bilt's Mortgage Points: A Game Changer or a Minor Tweak?
Hey everyone, Phillip here from Points of Phillip, bringing you the latest in the world of credit cards and travel rewards. Today, we're diving into a recent announcement from Bilt, the credit card company famous for letting you earn points on rent payments without fees.
Bilt's Big Announcement: Points for Mortgages... with a Catch
Bilt made waves when they initially announced plans to expand their rewards program to include mortgage payments. This was seen as a way to appeal to homeowners, not just renters. However, the recent details reveal a more limited scope than initially anticipated.
Bilt has partnered exclusively with United Wholesale Mortgage (UWM) to offer points on mortgage payments made through their platform. The big question is: how many points will you earn? We don't know the exact earning rate yet. Is it one point per dollar, or a fixed amount per payment? Because Bilt's programs have been known to evolve, it's tough to say for sure.
Bilt vs. the Mesa Homeowner Card: A Comparison
This news prompts us to consider: Is the Bilt program still a worthwhile deal, or should we look at alternatives? One card that comes to mind is the Mesa Homeowner Card. Mesa offers one point per dollar on mortgage payments, regardless of your mortgage provider. Even more interesting, if you refinance through a lender in the Mesa portal, you can earn one point per dollar of your entire mortgage amount! Imagine earning 300,000 points on a $300,000 refinance.
Again, we don't know the specifics of the Bilt program yet, so it's hard to make a direct comparison. With Mesa, you don't even need to use the card to pay your mortgage; you simply verify your payment with Mesa.
The Bilt Card: A Refresher
It's important to distinguish between the Bilt program and the Bilt Mastercard. Bilt is transitioning from its current Wells Fargo card to a new provider, with multiple Bilt cards expected to replace the single Wells Fargo card sometime around December or January.
The current Bilt card has no annual fee and offers:
1x points on rent (up to 100,000 points per year)
5x points at Bilt neighborhood dining partners
3x points on other dining purchases
5x points on Lyft rideshare purchases
2x points on travel booked directly with airlines, hotels, car rental agencies, cruise lines, or through the Bilt travel portal
To earn any points, you must use the card at least five times each statement period.
The Real Value: Bilt's Transfer Partners
The biggest draw of the Bilt program is its valuable transfer partners, most notably Hyatt and Alaska Airlines (Mileage Plan). These points can be redeemed for high-value travel experiences. Other partners include United and Southwest, among others.
The Bilt program is attractive for its rental rewards and potential mortgage rewards (if you use UWM), but its transfer partners truly elevate its value.
Mesa Card Perks and Benefits
The Mesa Card also comes with no annual fee, and offers a unique set of benefits for homeowners. While it doesn't offer points on rent, it shines in other areas.
Mortgage Payments: Earn 1 point per dollar on mortgage payments.
3x Points Categories: Home improvement, décor, maintenance, utilities, and daycare.
Everyday Spending: Earn 2x points per dollar on groceries, gas, and EV charging. Earn 1 point per dollar on everything else.
To earn mortgage points, you need to spend at least $1,000 on the card each billing cycle.
Mesa Card: Coupon Book
Costco Membership: $65 annual credit (effectively a free Costco membership).
Wag Credits: $120 annual credit for dog walking services.
Lowe's Credit: $120 annual credit ($30 per quarter).
Home Warranty Credit: $100 annual credit for Armadilla home warranty services.
Farmers Dog: $120 annual credit ($60 every other month)
The Mesa card's transfer partners aren't as strong as Bilt's, but include options like Air Canada (Aeroplan), AeroMexico, and Air India (great for booking United flights). Cathay Pacific is another partner to consider.
The Verdict: Which Card is Right for You?
The best choice depends on your individual circumstances:
Bilt: If you're a renter, value Bilt's transfer partners, and are willing to explore UWM for your mortgage, Bilt could be a good fit.
Mesa: If you're a homeowner, want a card with strong bonus categories for home-related expenses, and don't want to be tied to a specific mortgage lender, Mesa is worth considering.
The Bilt news is interesting, but its value will depend on the details of the UWM partnership. For many homeowners, the Mesa card might be the easier and more rewarding option.
What Do You Think?
Let me know in the comments below what you think of this news! Will it change your credit card strategy? Are you considering UWM for your mortgage? Share your thoughts!