MW Should you ever cancel a credit card? Bilt's confusing rewards shake-up puts renters in a tough spot.
By Genna Contino
How to tell if the Bilt Card 2.0 is right for you
The Bilt Card 2.0 has a tiered rewards structure that will require cardholders to spend more money to unlock points on housing payments.
A credit card aimed at renters is revamping its rewards program, leaving some users to wonder if the new version of the card is still worth it - or if they should cancel their accounts.
Bilt, a credit card known for letting users accumulate rewards points when they pay their rent, is transitioning to its Bilt Card 2.0, which will have a tiered rewards structure and require cardholders to spend more money to unlock points on housing payments. Annual fees on the new card, which comes in three different versions, range from $0 to $495.
The new Bilt card goes live Feb. 7, and existing cardholders have until Friday, Jan. 30, to preorder it and maintain their current credit-card number. Bilt is transferring its partnership from Wells Fargo $(WFC)$ to fintech company Cardless. Customers who choose not to transition their existing account will be converted to a Wells Fargo Autograph card.
Bilt partnered with thousands of property managers to provide a system for renters to pay rent without transaction fees and to earn points along the way, helping Bilt find a following among well-heeled city dwellers. The ranks of upper-income renters have grown in recent years as elevated home prices and mortgage rates keep many Americans from buying a house.
While more than 5 million people earn rewards through Bilt by paying rent through its system, only about 800,000 members are Bilt cardholders, earning points on both rent and everyday spending. Though Bilt's customer base is modest compared with credit-card giants such as American Express $(AXP)$ and Chase $(JPM)$, which have millions of cardholders, the company has built a passionate following.
For points enthusiasts, Bilt 2.0 offers more opportunities to earn points that can be spent on hundreds of dollars' worth of new statement credits. For the set-it-and-forget-it renter - someone who signed up with Bilt primarily to earn points on their largest monthly bill without making any extra effort - the new version may be a math problem that no longer adds up. The new rewards system requires users to spend as much as 75% of their rent amount on everyday purchases to earn the same rewards that previously required only five small transactions.
With a looming deadline to preorder the new card, current users face a choice: opt in for a new bank partner and skimpier rent rewards, or see their account converted to a standard Wells Fargo card that offers no housing rewards at all.
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Bilt 2.0 comes with a 10% introductory APR on new purchases for a year and allows users, for the first time, to earn points on mortgage payments, in addition to rent payments. Bilt points, which are worth 2.2 cents per point, according to travel and credit-card comparison site the Points Guy, can be redeemed for multiple types of purchases, including flights and hotels, shopping on Amazon (AMZN) and fitness classes, and can even be put toward a down payment on a home.
Overall, if your rent is expensive but you only put, say, $500 a month on credit cards, the new Bilt card likely isn't a good deal for you. And if you tend to shy away from complicated credit-card points systems, Bilt 2.0 will not offer the simplicity that came with the original card.
However, if you own your home, the new card offers the opportunity to earn points on your mortgage payments. It is also good for big spenders: Those who already spend at least $2,000 per month on food and travel can easily rack up points on rent or mortgage payments, plus significant points multipliers for everyday spending on the two premium-tier cards.
"I know some of the parameters have changed and it's gotten more confusing and perhaps less lucrative for some," said Ted Rossman, a Bankrate senior industry analyst. "But I still do think of this card as being worthwhile for the upwardly mobile, young professional renter. It actually is one of the most lucrative transferable-points cards on the market."
How do I know if the new Bilt card is worth it for me?
The rollout of Bilt 2.0 has been far from smooth. After the initial announcement earlier this month, Bilt founder and Chief Executive Ankur Jain published a note addressing member concerns about earning points on rent, and Richard Kerr, the company's general manager for travel, hosted an "ask me anything" forum on Reddit (RDDT). That ended with Kerr posting a meme about "basement dwelling Redditors" on Instagram $(META)$, which he publicly apologized for soon after.
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For those who are still confused, the biggest change is in how rent rewards are generated. Cardholders will now choose between two options:
-- Option 1: Rent rewards are determined by your everyday spending ratio. To earn the 1x points that were previously automatic, you now have to spend 75% of your rent amount on nonhousing purchases (like groceries and dining) each month. If you spend less, your rewards drop. For example, a $2,000 rent payment requires $1,500 in other card spending to hit that 1x tier. Otherwise, you may only earn half a point per dollar or a flat 250-point minimum.
-- Option 2: This path offers 4% back in "Bilt Cash" on your daily spending. Bilt Cash is a separate currency used to "buy" the right to earn points on housing. To get the full 1x points on a $2,000 rent payment, you would need to redeem $60 of Bilt Cash (a rate of $30 per 1,000 points). Alternatively, you can skip the rent points and use that cash for dollar-for-dollar credits on Lyft, hotels or fitness classes with Bilt partners.
What to know if you apply
The Bilt 2.0 card will not allow you to use your credit line to pay your rent or mortgage. Instead, it will pull rent and mortgage payments from your linked bank account. That means those who used their Bilt 1.0 credit line to cover rent and then paid off the balance over the course of the month will now have to cover those costs up front at the beginning of the month.
I don't want the Bilt 2.0 card. Do I just cancel the Wells Fargo account?
Generally speaking, you're better off keeping a credit card rather than canceling it, unless it has an annual fee, according to Matt Schulz, chief consumer finance analyst at LendingTree (TREE). Keeping the account open helps maintain your credit score by preserving the average age of your accounts and keeping your credit-utilization ratio - the amount of debt you owe relative to your total credit limit - as low as possible.
The Wells Fargo Autograph card, which Bilt 1.0 users will automatically receive if they don't transition to the new card, does not have an annual fee.
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If you still choose to cancel the Autograph card, you can avoid taking a hit to your credit score by asking for an increase to your credit limit on one or more of your other cards, Schulz said. By increasing the limits on your remaining cards, you replace the "missing" credit from the canceled account and prevent your overall usage ratio from spiking.
"Canceling a credit card can damage your credit score, but there are concrete steps that you can take to minimize the damage," Schulz said.
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-Genna Contino
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(END) Dow Jones Newswires
January 29, 2026 13:03 ET (18:03 GMT)
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