This Credit Card Rewards You for Paying Rent. But Is It Worth It?
KEY POINTS
- Bilt Mastercard® pays your rent transaction fees, saving you money each month.
- You earn points on rent payments and other spending, but with restrictions.
- It's the only card that rewards rent payments.
Ever know someone who pays rent with a credit card? My workout partner does. But instead of paying fees, he gets money back for using a credit card to pay rent. That caught my attention. You generally don't get rewarded for swiping a credit card on rent day -- in the credit card universe, that's unheard of.
Sure, many credit card companies give you points for paying rent. But the cost of transaction fees typically outweigh the benefits you get from using a credit card.
Bilt Mastercard® is the exception to this rule. It rewards you for paying rent. Instead of costing you transaction fees, it pays the transaction fee for you, then also gives you points you can use to lower your next rent payment, among other things.
It's novel. It's interesting. But is it worth it? Like any credit card, this one has limits. But there's a reason it's the No. 1 credit card for paying rent. And it's costing Wells Fargo, the bank that backs the card, a pretty penny. Below, I'll dive into the pros and cons of the Bilt Mastercard®.
Pro: Bilt Mastercard® pays transaction fees for rent
Bilt Mastercard® pays your rent-based credit card transaction fees.
Companies typically charge you 3% for paying rent with a credit card. Since Americans spend about $2,000 a month on rent, Bilt Mastercard® could save the typical American household about $60 per rent payment by paying the transaction fee while also allowing users to rack up credit card rewards.
Con: Bilt Mastercard® pays your 3% fee once per month only
Bilt Mastercard® limits the number of times it pays your transaction fee to once per month.
If you make multiple rental payments per month, only a single payment is covered. So, this card is less useful when you pay rent bi-monthly. You'll still earn points by paying with Bilt Mastercard®, but the rewards may not be worth the cost of transaction fees the issuer refuses to cover.
Pro: The Bilt Mastercard® rewards you for non-rent spending
The Bilt Mastercard® rewards you for spending on travel and dining, among other things.
You get 1x point per $1 spent on rent. But you also get one point on everyday purchases. Plus, you get double and triple points on travel and dining, respectively. Combined with unique rental perks, these rewards make the credit card worth swiping.
Con: The Bilt Mastercard® is complicated
The Bilt Mastercard® is limited in many ways that aren't immediately obvious.
You must make at least five transactions in a statement period to earn rewards. You can't use the Bilt Mastercard® just for rent payments. There's more. How you pay rent may require extra steps to get the fee covered. You may need to link external accounts, for example.
All that is to say, this credit card is complicated. Though it's novel, you may struggle to get it set up, especially if you pay rent via check or Venmo. Reddit complaints have cited Venmo denying transactions. They also described issues linking PayPal to the card.
Is the Bilt Mastercard® worth it?
The Bilt Mastercard® is worth it if you want to pay rent with a credit card. It covers transaction fees, which means you save money per transaction. Right now, it's the only credit card that covers rental transaction fees, within limits.
The Bilt Mastercard® is popular because no competitors cover rent payment transaction fees. And for good reason -- this fee is big, and it costs credit card companies a lot of money. According to The Wall Street Journal, the card costs Wells Fargo up to $10 million monthly.
But for all its rent-saving powers, the Bilt Mastercard® lacks in other areas. Instead, consider the Wells Fargo Active Cash® Card (see rates and fees) or the Wells Fargo Autograph℠ Card (see rates and fees).
Wells Fargo Active Cash® Card
For a simpler Wells Fargo card you can use for anything, consider the Wells Fargo Active Cash® Card. You get 2% cash rewards on all purchases. It doesn't cover rental transaction fees, so pay rent with a debit card or bank account to avoid the 3% fee.
Good/Excellent (670-850)
Intro APR 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers
Purchases: 0% intro APR, 12 months from account opening
Balance Transfers: 0% intro APR, 12 months from account opening on qualifying balance transfers
Regular APR
20.24%, 25.24%, or 29.99% Variable APR
Rewards Earn unlimited 2% cash rewards on purchases.
2% cash rewards
Annual Fee N/A
$0
Welcome Offer Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
$200 cash rewards
-
This card’s unlimited 2% cash rewards on purchases is the highest we’ve seen for a flat-rate rewards card with no annual fee. It also has an incredibly easy-to-earn $200 welcome bonus and a decent intro APR offer. We simply haven’t come across this combination of top perks in one card before. Read Full Review
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- Unlimited 2% cash rewards
- Long 0% intro APR offer
- Generous cash rewards welcome bonus
- No annual fee
- Cellphone protections
- No bonus categories
- Foreign transaction fees
- Balance transfer fee
-
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 20.24%, 25.24%, or 29.99% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Wells Fargo Autograph℠ Card
For a better-paying Wells Fargo travel card, check out the Wells Fargo Autograph℠ Card. You get more points on non-rent categories, and there's no annual fee. You can also get a welcome offer of 20,000 bonus points (worth $200) after spending at least $1,000 in the first 3 months.
Good/Excellent (670-850)
Intro APR 0% intro APR on purchases for 12 months from account opening
Purchases: 0% intro APR, 12 months from account opening
Balance Transfers: N/A
Regular APR
20.24%, 25.24%, or 29.99% Variable APR
Rewards Earn unlimited 3X points on restaurants, travel, gas stations, transit, popular streaming services and phone plans. Plus earn 1X points on other purchases.
1X-3X points
Annual Fee N/A
$0
Welcome Offer Earn 20,000 bonus points when you spend $1,000 in purchases in the first 3 months - that's a $200 cash redemption value.
20,000 bonus points
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This card offers unlimited 3X points on common things like restaurants, gas stations, travel, transit, popular streaming services, and phone plans. Plus, earn 1X points on other purchases. This could be a great pick if you spend a lot in those categories. A solid welcome bonus and cell phone protection are the cherries on top. Read Full Review
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- Strong welcome bonus for a no annual fee card
- Earn Unlimited 3x points on useful categories
- Cellphone protection
- Other cards offer larger bonuses, though they usually come with annual fees
- The 1x points baseline rewards rate on other purchases, though normal for this type of card, can be beat
-
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn 20,000 bonus points when you spend $1,000 in purchases in the first 3 months - that's a $200 cash redemption value.
- Earn unlimited 3X points on the things that really add up - like restaurants, travel, gas stations, transit, popular streaming services, and phone plans. Plus, earn 1X points on other purchases.
- $0 annual fee.
- 0% intro APR for 12 months from account opening on purchases. 20.24%, 25.24%, or 29.99% variable APR thereafter.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
- Redeem your rewards points for travel, gift cards, or statement credits. Or shop at millions of online stores and redeem your rewards when you check out with PayPal.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
Wells Fargo may limit its Bilt partnership. It may also cancel the program or extend it indefinitely. For now, the Bilt Mastercard® is the best credit card for rent payments. In fact, it's the only one. If you're interested in paying rent with a credit card, the Bilt Mastercard® is worth looking into.
Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
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