Not sure why anyone thinks this is a brilliant analysis. It's pretty much the same situation with all credit card rewards issuers. It's a bet that the fees coming in more than cover the rewards given out. The entire industry is covered by people with low credit scores with both high and low income paying all of the interest, annual fees and rewards for those getting them. And yet, there are more and more cards being offered every year. After seeing this video, I am keeping my Bilt card. In fact, thinking about getting another one to pair it with the Surge debit card to expand rent day to all month.
The Bilt downsides you listed are mostly generic to any credit card downsides with the exception of consequences of missing rent payments since that is unique to a Bilt setup. Bilt has been awesome for us. Effectively got a 50k sign-on bonus when Bilt gave 10x points for any purchase (except rent) for the first 5 days. We put 5k spend on the card to get 50k points. Also, purchase gift cards at local restaurants on the 1st of the month to get 6x dining points. Bilt also has Hyatt and American Airlines as transfer partners. Both are very valuable and rare transfer partners.
I am not sure what this video is really about. I have this card and I absolutely love it! The perks for a card with no annual fees are top tier! The pitfalls that this young man are speaking about are true for ANY card. If you have late payments and missed payments on any card- you’re going to get penalized. Your rent should already be in the bank. Honestly, if you don’t have the money in the bank- for anything that you’re putting on a credit card- then you should not be charging it in the first place. The point of credit cards- for me- is building points for things that I have to buy anyway-and to travel travel travel- for free.😊 I have several elite credit cards and Bilt is right up with them! My rent check is mailed on time every month and I have not had one issue since I’ve gotten the card. My advice to anyone reading this is- stop watching this video. And go apply for the Bilt card NOW! 😊
You missed the most important part where they basically recommend bult protect. Where your cc just acts like your debt card in the transaction for rent. You still earn points but its not going as a credit charge
Probably the responsible thing to do on your end was to have your final couple of sentences at the beginning. Specifically that if you're responsible about paying your rent, then Bilt is likely the best way to do so. Therefore, not mentioning this up front and more than once planting the seed that Bilt customers should be "angry" is really not accurate, to say the least.
I've been eying this card since my new place does partner with Bilt and I am so happy to find a source that is critical of the practice. Already, the idea of some consumers paying interest on rent, one of, if not, the largest monthly expenses for the average person, seemed insane but the points are quite alluring. Thank you for your perspective!
Most people carry a balance on their credit cards. Many of them actually think that's what you are supposed to do. If you are like me and pay on time always than what this credit card amounts to is a way to squeeze some value out of a portion of your monthly spend for renting that you couldn't get any other way. In the meantime you are showing it on your credit report and building better credit rating. Once Bilt changes the game then you stop using the card, stick it in the drawer and wait for them to close the account in 18 months. I don't see a downside.
One thing to note that was not mentioned in this video is the utilization of “Bilt Protect” when making a rent payment. It seems like throughout the video it’s assumed the rent payment posts to your credit card balance like a normal transaction would, which without “Bilt Protect” turned on, is true. However, with it turned on you schedule your rent payment via Bilt using your linked checking account and the rent payment processes like an ACH payment without posting a balance to your card, but still posting Points to your reward balance.
Yes, you're right- it's nice that they made that feature to protect against late payments (and it also helps them reduce the cash they have to outlay up front).
This is an outstanding take on Bilt and it is pretty similar to the one I got from one of my property managers when I asked if our property is partnered with Bilt. She actually has the Bilt card and stopped using it due to the high interest rates and late fees. My silent take on this was I am never late on my rent, so I would pay in full each month and not have to worry about interest, but life does happen. I think I am better off keeping my checking account linked to my rent portal. It gives us the option to report to TransUnion anyway, so that's good enough. One CC I don't need to worry about. Thanks again for this video you earned a subscriber today.
I agree with you 100%. BILT credit card will absolutely introduce an annual fee to this card. Just like Chase Sapphire reserve they will have to stop their net loss somehow and will do it in roughly 2 years from now. No company, especially credit cards, are in the business of losing money.
This is an obvious take and honestly didn’t age will. Bilt is doing great, Wells Fargo is the company losing on this deal. You should absolutely take advantage of this card if you make sound financial decisions. If not that is on you not your credit cards
I incurred TWO landlord late fees due to Bilt not mailing me rent checks on time. I was out $200 and decided it’s not worth the hassle. Their customer service also sucks btw.
My understanding is that the card does Not Allow you to charge your rent, you have to pay BILT up front and they send the check, payment. The long term play could involve the transition from renters to owners. Wells Fargo is the portal for BILT and I believe you can use your Bilt points to lower mortgage processing fees from Wells. Wells Fargo will get a crop of new buyers in time and a pristine data base of existing property owners across the US for rent payments.
I think you make some great points (pun intended) on the downfalls of their business model, but I think you're forgetting a big part of this. Making rent payments available to be paid by credit cards open up Americans to a whole new level of credit card debt. Housing is by far the largest expense for most Americans, and most people already suck at managing money. Now imagine I told you you could "buy now, pay later" for the largest expense for the month. So many Americans would fall for this and fall much deeper into credit card debt, allowing them to rack up even more via interest. Yes, the loss leader customer will take a big chunk out of their profits, but that applies to any credit card company (amex with the 6% groceries, chase with 5x travel, etc)
I actually did make that point 🤓 starting at 5:22. This card is so dangerous for consumers with bad credit.. I almost feel bad using it knowing that delinquent customers are subsidizing everyone else's points.
@@TheProptechScout I totally agree, but that goes for any credit card, or even business in general. The rent bonus is like the $5 rotisserie chicken at Costco, enough to get you in the door but you have to have the control to spend responsibly after that. I think they'll be fine, credit card companies make so much money to be a middleman, and having many people put the largest expense on a credit card will naturally allow them to profit more than they should on interest.
welll thats how all credit cards pay out rewards, using late fees, interest, interchange etc. that is a solid point you make that youre owing late fees to CC instead of landlord in court. This is a much more slippery slope that a normal credit card for someone with less financial stability..
They are gameifying credit cards with status tiers. They also offer transfer partners a no-annual-fee card. They offer a superior product and will attract business from more expensive alternative card issuers. $500 bucks a year won't break them.
I’m being forced to use this bilt system! Lame! I am planning on moving out of this apartment complex. I’ve never been late on a payment. Maybe, one day on accident; but seriously, this is not cool.
Do you not know that Bilt has implemented a slick solution for users that prevents tenants from incurring transaction fees from landlords? It’s likely time to redo this video. Either you missed it or their technology has evolved since you made it. I used Bilt to make a rent payment last week to a leasing company that isn’t part of their network - I incurred no transaction fee & the cash was directly deducted from my bank account. So, your analysis is incorrect. I do love your decorative asparagus though- very cool!
Thanks for this video! Question, let's say you open a BILT card, and a year later the company folds. So now you have a credit account on your record closed after only a year of use, which typically would negatively impact your credit score. Do you think Experian/etc. would know it was BILT that folded, and not dock your score? Or would I likely be taking that credit score hit?
I've had one of my credit card closed due to another financial company buying them out and it did not affected me/my score. It showed up on my credit report that the account was closed and yes, the credit bureaus were aware what occurred. So if BILT did fold, I don't think it would affect your credit score, imho.
I had the BlockFi Credit card for like a year and half then they went bankrupt. The card just got closed on my credit score a few weeks ago and it didn’t affect my credit report. I think it only affects if You close out or the CC company closes it due to no activity.
What are your thoughts on autopay only being accessible after making a wells fargo account? Could BILT be a loss leader to get financial savvy consumers to take a look at wells fargo's other financial products?
I hated that I had to create a Wells Fargo account. You're probably right about the upselling, so there's plenty of ways for them to make up for losses if the card isn't profitable on its own.
Every single credit card company would go out of business if all their users paid their balance in full every month and did not pay any late fees or interest. This risk is not unique to BILT.
resume of the video: Bilt will make money like any other CC company, with late payments and that makes them more than what they give away. Nothing new.
This is an interesting take. Bilt's current model is clearly unsustainable, but I think it's unlikely that they don't send rent payments. Wells Fargo isn't the most ethical bank, but they'd be getting sued like crazy if the rent checks bounced. They'd be in the situation of trying to collect their credit card charges while not holding up their end. I think more likely is the program gets shut down. Everyone loses their points and goes back to paying their rent directly. And one small correction, you state that you may make a travel protection or cell phone insurance claim at some point. That requires those charges be put on the the card, so you're going but a few extra charges on the account
![How to Use Bilt Points for MAX Value [Full Guide]](http://i.ytimg.com/vi/3Mpgmazaav8/mqdefault.jpg)
![How to Use Bilt Points for MAX Value [Full Guide]](/img/tr.png)
Not sure why anyone thinks this is a brilliant analysis. It's pretty much the same situation with all credit card rewards issuers. It's a bet that the fees coming in more than cover the rewards given out. The entire industry is covered by people with low credit scores with both high and low income paying all of the interest, annual fees and rewards for those getting them. And yet, there are more and more cards being offered every year. After seeing this video, I am keeping my Bilt card. In fact, thinking about getting another one to pair it with the Surge debit card to expand rent day to all month.
Let ‘em pay the Stupid Tax. Daddy wants those reward points. 💳🤑
Yeah this whole thing is just describing the credit card industry. Cause poor people have already been paying rent with credit cards
The Bilt downsides you listed are mostly generic to any credit card downsides with the exception of consequences of missing rent payments since that is unique to a Bilt setup. Bilt has been awesome for us. Effectively got a 50k sign-on bonus when Bilt gave 10x points for any purchase (except rent) for the first 5 days. We put 5k spend on the card to get 50k points. Also, purchase gift cards at local restaurants on the 1st of the month to get 6x dining points. Bilt also has Hyatt and American Airlines as transfer partners. Both are very valuable and rare transfer partners.
wow. this is scary. this guy is exposing it!!
I am not sure what this video is really about.
I have this card and I absolutely love it! The perks for a card with no annual fees are top tier!
The pitfalls that this young man are speaking about are true for ANY card.
If you have late payments and missed payments on any card- you’re going to get penalized.
Your rent should already be in the bank. Honestly, if you don’t have the money in the bank- for anything that you’re putting on a credit card- then you should not be charging it in the first place. The point of credit cards- for me- is building points for things that I have to buy anyway-and to travel travel travel- for free.😊
I have several elite credit cards and Bilt is right up with them!
My rent check is mailed on time every month and I have not had one issue since I’ve gotten the card.
My advice to anyone reading this is- stop watching this video. And go apply for the Bilt card NOW! 😊
No thanks!
You missed the most important part where they basically recommend bult protect. Where your cc just acts like your debt card in the transaction for rent. You still earn points but its not going as a credit charge
"I am not sponsored, but I do have an affiliate link." lol
One is paid just to talk about a product.
The other only earns a commission for every new customer.
I love the unique perspective on the middleman. First time I've seen someone challenging bilt. Keep up the awesome content!
Thank you, appreciate it!
Probably the responsible thing to do on your end was to have your final couple of sentences at the beginning. Specifically that if you're responsible about paying your rent, then Bilt is likely the best way to do so. Therefore, not mentioning this up front and more than once planting the seed that Bilt customers should be "angry" is really not accurate, to say the least.
I've been eying this card since my new place does partner with Bilt and I am so happy to find a source that is critical of the practice. Already, the idea of some consumers paying interest on rent, one of, if not, the largest monthly expenses for the average person, seemed insane but the points are quite alluring. Thank you for your perspective!
Most people carry a balance on their credit cards. Many of them actually think that's what you are supposed to do. If you are like me and pay on time always than what this credit card amounts to is a way to squeeze some value out of a portion of your monthly spend for renting that you couldn't get any other way. In the meantime you are showing it on your credit report and building better credit rating. Once Bilt changes the game then you stop using the card, stick it in the drawer and wait for them to close the account in 18 months. I don't see a downside.
One thing to note that was not mentioned in this video is the utilization of “Bilt Protect” when making a rent payment. It seems like throughout the video it’s assumed the rent payment posts to your credit card balance like a normal transaction would, which without “Bilt Protect” turned on, is true. However, with it turned on you schedule your rent payment via Bilt using your linked checking account and the rent payment processes like an ACH payment without posting a balance to your card, but still posting Points to your reward balance.
Yes, you're right- it's nice that they made that feature to protect against late payments (and it also helps them reduce the cash they have to outlay up front).
I'm a BILT mooch too. Never pay interest and I load up on travel purchases I have to make anyway on the 1st when BILT pays 4x on Travel.
This is an outstanding take on Bilt and it is pretty similar to the one I got from one of my property managers when I asked if our property is partnered with Bilt. She actually has the Bilt card and stopped using it due to the high interest rates and late fees. My silent take on this was I am never late on my rent, so I would pay in full each month and not have to worry about interest, but life does happen. I think I am better off keeping my checking account linked to my rent portal. It gives us the option to report to TransUnion anyway, so that's good enough. One CC I don't need to worry about. Thanks again for this video you earned a subscriber today.
Every credit card has high interest rates and late fees if you don't pay the balance off.
I agree with you 100%. BILT credit card will absolutely introduce an annual fee to this card. Just like Chase Sapphire reserve they will have to stop their net loss somehow and will do it in roughly 2 years from now. No company, especially credit cards, are in the business of losing money.
This is an obvious take and honestly didn’t age will. Bilt is doing great, Wells Fargo is the company losing on this deal. You should absolutely take advantage of this card if you make sound financial decisions. If not that is on you not your credit cards
Well done explaining the business model, I’m now educated on how the newest addition to my wallet works
So according to you. Bilt will make $0 from me. Cause I pay my card in full and am never late.
It depends on how many non-rent charges you make
I incurred TWO landlord late fees due to Bilt not mailing me rent checks on time. I was out $200 and decided it’s not worth the hassle. Their customer service also sucks btw.
My understanding is that the card does Not Allow you to charge your rent, you have to pay BILT up front and they send the check, payment. The long term play could involve the transition from renters to owners. Wells Fargo is the portal for BILT and I believe you can use your Bilt points to lower mortgage processing fees from Wells. Wells Fargo will get a crop of new buyers in time and a pristine data base of existing property owners across the US for rent payments.
So they are betting more on ppl to pay interest and late fees. It is still worthy for ppl don’t delay payment though.
@7:02 one year later BILT redefined the terms of how rewards and bonus points are awarded.
Wow! Absolutely loved this take! You’ve just won a subscriber!
I think you make some great points (pun intended) on the downfalls of their business model, but I think you're forgetting a big part of this. Making rent payments available to be paid by credit cards open up Americans to a whole new level of credit card debt. Housing is by far the largest expense for most Americans, and most people already suck at managing money. Now imagine I told you you could "buy now, pay later" for the largest expense for the month. So many Americans would fall for this and fall much deeper into credit card debt, allowing them to rack up even more via interest.
Yes, the loss leader customer will take a big chunk out of their profits, but that applies to any credit card company (amex with the 6% groceries, chase with 5x travel, etc)
I actually did make that point 🤓 starting at 5:22. This card is so dangerous for consumers with bad credit.. I almost feel bad using it knowing that delinquent customers are subsidizing everyone else's points.
@@TheProptechScout I totally agree, but that goes for any credit card, or even business in general. The rent bonus is like the $5 rotisserie chicken at Costco, enough to get you in the door but you have to have the control to spend responsibly after that. I think they'll be fine, credit card companies make so much money to be a middleman, and having many people put the largest expense on a credit card will naturally allow them to profit more than they should on interest.
welll thats how all credit cards pay out rewards, using late fees, interest, interchange etc. that is a solid point you make that youre owing late fees to CC instead of landlord in court. This is a much more slippery slope that a normal credit card for someone with less financial stability..
Bilt's points are only 1/2 percent, a half a penny per point. I have a Visa card that pays 2.5% back. That's a lot better than .5%.
That is incorrect, value in their portal is 1 cent, points guy figured their points are worth 1.8 cents when transferred to partners
They are gameifying credit cards with status tiers. They also offer transfer partners a no-annual-fee card. They offer a superior product and will attract business from more expensive alternative card issuers. $500 bucks a year won't break them.
I’m being forced to use this bilt system! Lame! I am planning on moving out of this apartment complex. I’ve never been late on a payment. Maybe, one day on accident; but seriously, this is not cool.
Do you not know that Bilt has implemented a slick solution for users that prevents tenants from incurring transaction fees from landlords? It’s likely time to redo this video. Either you missed it or their technology has evolved since you made it. I used Bilt to make a rent payment last week to a leasing company that isn’t part of their network - I incurred no transaction fee & the cash was directly deducted from my bank account. So, your analysis is incorrect.
I do love your decorative asparagus though- very cool!
Update at 1:50 the points are now capped at 100,000 and rent is considered as a qualifying transaction.
Oh, I understand. Very interesting.
I took a wait and see approach with this card; I don’t think it’s worth a Chase’s 5/24 slot at the moment for me
Me too
I have to say, I've been pleasantly surprised by the rent day travel bonuses.
Bilts business model to capitlaize on "bad" credit management is brilliant. Like the numbers you mentioned, thats their bottom line.
Thanks for a great vid man!
You're welcome!
Sharp critique👍🏾
Thanks for this video! Question, let's say you open a BILT card, and a year later the company folds. So now you have a credit account on your record closed after only a year of use, which typically would negatively impact your credit score. Do you think Experian/etc. would know it was BILT that folded, and not dock your score? Or would I likely be taking that credit score hit?
I've had one of my credit card closed due to another financial company buying them out and it did not affected me/my score. It showed up on my credit report that the account was closed and yes, the credit bureaus were aware what occurred. So if BILT did fold, I don't think it would affect your credit score, imho.
I had the BlockFi Credit card for like a year and half then they went bankrupt. The card just got closed on my credit score a few weeks ago and it didn’t affect my credit report. I think it only affects if You close out or the CC company closes it due to no activity.
I just applied for the credit card solely for the perk of being able to pay my rent and earn points while doing so...
i have the card just wished it wasnt associated with wells fargo failing bank
You're wrong Sir, 5 transactions/month. The rent count as a transaction
So many people talking about "points" but these points are near worthless until you get an ridiculous amount.
What are your thoughts on autopay only being accessible after making a wells fargo account? Could BILT be a loss leader to get financial savvy consumers to take a look at wells fargo's other financial products?
I hated that I had to create a Wells Fargo account. You're probably right about the upselling, so there's plenty of ways for them to make up for losses if the card isn't profitable on its own.
Great video, keep it up!
smart video. but if you think about it, all credit card companies are predators, not just bilt. at least bilt is sharing the wealth.
Every single credit card company would go out of business if all their users paid their balance in full every month and did not pay any late fees or interest. This risk is not unique to BILT.
resume of the video: Bilt will make money like any other CC company, with late payments and that makes them more than what they give away. Nothing new.
All credit cards that give points do the same thing. They use the money gained from people paying cc fees.
This video is just bait.
Do you have any videos on Brex closing accounts ?
I thought the rent payment counts toward the 5 putchases
I watched another video that said it does so I’m confused here too
This was an incredible breakdown of how this will affect the environment as a whole, great takes
Pretty low teeth argument. Facts stated which I appreciate. Not making any changes though…
Can i apply for this in canada
It’s like shorting people’s lives. Their lives will get worse and we’ll make money off of it. 😢
You lost me at Wellsfargo.
Two words for you " Velocity Banking"
What's funny is that this guy just explained how credit cards work and was wrong.
This is an interesting take. Bilt's current model is clearly unsustainable, but I think it's unlikely that they don't send rent payments. Wells Fargo isn't the most ethical bank, but they'd be getting sued like crazy if the rent checks bounced. They'd be in the situation of trying to collect their credit card charges while not holding up their end. I think more likely is the program gets shut down. Everyone loses their points and goes back to paying their rent directly. And one small correction, you state that you may make a travel protection or cell phone insurance claim at some point. That requires those charges be put on the the card, so you're going but a few extra charges on the account
Wtf did I just watch
What a boring and dramatic analysis
No one cares 😂