I read this just this morning and it cracked me up. Almost as if the bank didn’t realize a whole portion of people who are good with credit cards are gonna pay their cards off every month and just gain the sweet bill points 😂. I mean literally I cashed out on a free week at a hotel during a vacation because of all the points I racked up over 12 months. What person wouldn’t get this card and earn points for paying rent?
This seems exactly why AMEX cards are coupon books. I love my BILT but me and all my friends that have it only use it for rent and 4 dining or very small purchases most months.
The CEO of bilt came out to address some misconceptions about the WSJ article but all he did was avoid the big elephant in the room by not addressing the massive losses WF is taking. Not to say there is any love loss with WF losing money but economics don’t look good for bilt when they refuse to talk numbers including on interviews about the average cost per payment incurred with each bilt rent payment. Either way.. it might be worth utilizing it before some major blow or devaluation to program comes soon.
@@MH_6160 They already got rid of 100 points for linking a programs. They need to get rid of rent payments, since it's where they are mostly losing money.
If they decided to nerf the card, I wonder if they would open a way for us to product change to a Wells Fargo branded card. That Attune is pretty sweet with how broad the categories are, and the sign up bonus kind of sucks anyways. Would love to product change to that if Bilt devalues their points.
They are losing money on rent payments, since they need to pay for points at least 1cpp, they get 0.8% from WF. The rest of spend is mostly in 3x category, minimum 2x. Interchange fee is 2.2%. If it's 2x, then they pay 2%, they are only earning 0.2%, and they also need to pay to MC. There is no way they can earn any money. Neighborhood spend is just restaurants, from dining rewards, and some upscale gyms. No way Bilt is profitable. It's a Ponzi scheme.
The big problem with Bilt is their credit limit, Their Credit Limit is about on average 5-7 times less than Chase, also for spending on rent, there are few room left for everyday spending, which banks can be profited on, not mentioning more likely of carrying a balance.
WF definitely did their homework wrong. They try to recoup the cost from interest but who would’ve known that a lot of customers are card savvy and only use it for rent.
Seems the average credit card usser either didn't know about this card or just wasn't interested. Makes sense though...if I wasn't into maximizing points/miles, I likely wouldn't have bothered with this card. Likely would have just gotten an Apple Card or Citi Double Cash.
They only lose money because people only use it for rent and small purchases or dining which doesn’t make them money, they expected the people who carry a balance and use it for none category spend to make up for that but they where wrong
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I read this just this morning and it cracked me up. Almost as if the bank didn’t realize a whole portion of people who are good with credit cards are gonna pay their cards off every month and just gain the sweet bill points 😂. I mean literally I cashed out on a free week at a hotel during a vacation because of all the points I racked up over 12 months. What person wouldn’t get this card and earn points for paying rent?
Well, It is Wells Fargo and they’re the dumbest around 😅
They assumed young people are reckless spenders and I can’t say that I blame them.
The bill card is an open controlled loss leader. Analogy, Bilt card : Alien. Landlords : signorey weaver and Predator, renters : people?
5:46 oh no! I guess I'm going to have to buy 8-10 single bananas in separate transactions at Trader Joes instead of five.
I didnt realize AA was dumping Bilt. I pay rent with Bilt, plus eating out. They mail my 90 yr old landlords a paper check. So that works well.
Every new card has to be willing to lose money in the short term while they acquire customers.
This seems exactly why AMEX cards are coupon books. I love my BILT but me and all my friends that have it only use it for rent and 4 dining or very small purchases most months.
The CEO of bilt came out to address some misconceptions about the WSJ article but all he did was avoid the big elephant in the room by not addressing the massive losses WF is taking.
Not to say there is any love loss with WF losing money but economics don’t look good for bilt when they refuse to talk numbers including on interviews about the average cost per payment incurred with each bilt rent payment.
Either way.. it might be worth utilizing it before some major blow or devaluation to program comes soon.
Bet they get rid of 2x on rent day first.
@@MH_6160 They already got rid of 100 points for linking a programs. They need to get rid of rent payments, since it's where they are mostly losing money.
If they decided to nerf the card, I wonder if they would open a way for us to product change to a Wells Fargo branded card. That Attune is pretty sweet with how broad the categories are, and the sign up bonus kind of sucks anyways. Would love to product change to that if Bilt devalues their points.
I wish I had heard of this two years ago. :( Most no-brainer deal ever.
I have the bilt master card and I believe the bilt is new on the credit card so everything will be okay
They are losing money on rent payments, since they need to pay for points at least 1cpp, they get 0.8% from WF. The rest of spend is mostly in 3x category, minimum 2x. Interchange fee is 2.2%. If it's 2x, then they pay 2%, they are only earning 0.2%, and they also need to pay to MC. There is no way they can earn any money. Neighborhood spend is just restaurants, from dining rewards, and some upscale gyms. No way Bilt is profitable. It's a Ponzi scheme.
Great in-depth video without fluff. Thanks for the upload!
The big problem with Bilt is their credit limit, Their Credit Limit is about on average 5-7 times less than Chase, also for spending on rent, there are few room left for everyday spending, which banks can be profited on, not mentioning more likely of carrying a balance.
Just pay rent and 5 transactions on the 1st for rent day double points. Easy peasy.
I was thinking about applying for this card,but I don't know now
Their contract is until 2029. You can earn a lot of points in those 5 years.
It is probably worth it to still get the card now
You have 5 years left to enjoy the benefits
On the beginning of the year, I transfer almost 180k points to airCanada at a 2.5 bonus ❤
WF definitely did their homework wrong. They try to recoup the cost from interest but who would’ve known that a lot of customers are card savvy and only use it for rent.
Seems the average credit card usser either didn't know about this card or just wasn't interested. Makes sense though...if I wasn't into maximizing points/miles, I likely wouldn't have bothered with this card. Likely would have just gotten an Apple Card or Citi Double Cash.
They need to advertise to people with lower credit to carry a balance
Middle Finger To The Man! Pay in full never pay interest you win the game
Jazzy with glasses = teacher vibes
might be a good time to transfer out some bilt points
What mic are you using?
It was gifted to me and I’m not sure the brand… it’s not the greatest lol
Great job on TH-cam ❤
Good info!
Middle Finger To The Man! Pay in full never pay interest you win the game
They only lose money because people only use it for rent and small purchases or dining which doesn’t make them money, they expected the people who carry a balance and use it for none category spend to make up for that but they where wrong
You are right on point. With your comment.
This may be an excuse to charge an annual fee. They can also offset any deficit by increasing minimum spending from 5 to 10 charges a month.