Bilt Card Downgrades and Upgrades
Ever since the new Bilt credit cards rolled out earlier this year, we've wondered: What will downgrade and upgrade paths look like? Now, we have a better idea. Bilt has begun rolling out upgrade and downgrade options, as detailed in a recent update to its terms. There will be a limit of one product change in a 12-month period. Product upgrades are currently in beta for select cardholders. Upgrade eligibility will vary by cardholder, and it sounds like some could even be targeted for an upgrade bonus. The upgrade feature will roll out in phases. Cardholders will be notified once the option is more widely available. On the flip side, downgrades are available for Obsidian and Palladium cardholders, though some of the terms are a bit murkier. This is what we know so far about how Bilt Card downgrades and upgrades will work.
How Downgrades Will Work
Cardholders with the Bilt Obsidian or Palladium Card can downgrade to a lower-tier Bilt card. You can start a downgrade by contacting Cardless Support by phone. Cardless will then email a secure link to complete the change in the Bilt app. Options are as follows:
- Obsidian Cardholders: Downgrade to the Blue Card
- Palladium Cardholders: Downgrade to either the Obsidian Card or Blue Card
Downgrade Timing
Most Bilt card downgrades and upgrades will be processed the same day. Note that the card’s anniversary date does not change after a downgrade. However, the terms say that welcome offers could be clawed back, depending on the timing.
If you downgrade within 30 days of the existing card’s annual fee posting:
- The annual fee for the original card will be refunded. If you're downgrading from Palladium to Obsidian, the new card's prorated annual fee will be charged for the remainder of the card year
- The original card’s welcome bonus will be reversed and replaced with the new card’s welcome bonus, if applicable. If you've already used some or all of those points and credits, this could result in negative balances of Bilt points or Bilt Cash.
If you downgrade 30+ days after the existing card's annual fee posts:
- The existing card’s annual fee won't be refunded.
- The cardholder keeps the welcome bonus already earned and does not receive a new one.
We don't yet know if these terms apply only to the first annual fee or the renewal fee also. We always recommend keeping a card for at least 1 year to avoid the issuer potentially clawing back a bonus. But a clawback after 12 months is much less common, so we hope that won't be the case here. We will update this article as more information becomes available.
How Upgrades Will Work
On the other hand, eligible cardholders can choose to upgrade to a higher-tier card. This function is currently in beta and is only available for select cardholders. To find out if your card is eligible for an upgrade, check your Bilt card settings. If an offer is available, you can select the new card and confirm the product change with no new application required. One potentially cool thing: Eligible upgrades can include an upgrade bonus, with the exact offer shown at the time of the upgrade.
- Blue Cardholders: May be eligible to upgrade to the Obsidian or Palladium Card
- Obsidian Cardholders: May be eligible to upgrade to Palladium Card
Upgrade Timing
Upgrades are not permitted before your first statement closes. Most Bilt card downgrades and upgrades are processed the same day. The new card’s benefits become active as soon as the upgrade is complete, before the new physical card arrives. Unlike with downgrades, the card anniversary date changes based on the new card’s annual fee posting date.
- If you upgrade within 30 days of the original card’s annual fee posting: The original fee is refunded in full. The full annual fee for the new card will be charged separately.
- If you upgrade 30+ days after the original card’s annual fee posting: You'll receive a prorated refund for the unused portion of the year.
Bilt Card Downgrades and Upgrades: ToP Thoughts
We finally have more information about what Bilt Card downgrades and upgrades will look like. It will be especially interesting to see what kind of targeted upgrade offers roll out for those who are eligible to make an upgrade. Bilt has a pretty extensive FAQ outlining both processes. However, it still leaves some questions unanswered, including how that welcome-offer clawback language applies around annual-fee renewals. As we inch closer to the 1-year anniversary of the new Bilt credit card launches, are you thinking about making a product change? Come over to the Facebook group and let us know.
