This Credit Card Rewards You for Paying Rent. But Is It Worth It?

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.

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.

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.