TAMPA, Fla. — Housing costs are one of the biggest expenses for most households. A bank launches a rewards program for people who pay their rent.
You probably saw your rent go up last year. Wells Fargo’s new credit card helps renters take their biggest expenses and turn them into rewards.
Bilt Rewards is the first loyalty program that allows tenants to earn points when they pay their rent free of charge.
“That’s the real game changer here because landlords typically don’t accept credit cards or if they do, they add transaction fees,” said Ted Rossman, senior industry analyst at Bankrate.com.
With the Bilt Rewards credit card, renters can earn rewards at more than two million rental properties across the country. Points earned through this apartment rewards program can be used to cover your rent, travel, or a down payment on a home.
According to the bank, tenants can earn up to 50,000 points per year and receive one point for every dollar spent on rent. But is it worth it?
“I think the sweet spot here is someone who spends a fairly large amount of money on rent. For example, if you want to max out those 50,000 points a year, you need to spend over $4,000 a month on rent,” Rossman said.
Daycare bills offer another way to rack up huge rewards. Various credit cards allow you to pay your daycare bill and earn valuable travel rewards or cash back.
Financial experts say it only makes sense to charge everyday bills to a credit card if you can pay your bill in full each month and avoid interest.
“Any credit card with rewards is going to be a bad deal if you have a balance, because the average credit card charges 16.5%, so it’s just not worth it,” Rossman said.