Bilt Is Making Changes
Well, that didn't take long. After hearing waves of negative feedback on their Bilt 2.0 card launch Bilt is already making changes. Does this feel like déjà vu? It could, because this is exactly what happened years ago when they launched Bilt 1.0. Bilt's initial launch into the credit card world was a bit complicated for people so they trimmed it down to the product you have seen over the last few years. I applaud their flexibility, and willingness to pivot, but it shows they didn't learn much from that first launch. Having said all of that, while the new changes may seem simpler – they are in fact worse. Don't fall for the bait! They are for the unimaginative, for the people that lack creativity, knowledge and the understanding needed. If I have anything to say about it, that should not include you.
Bilt 3.0
If you need more details on the Bilt 2.0 launch be sure to read up on my complete card review and why I think paying rent is actually a potentially bad deal. I don't want to rehash that stuff here for the people that already dived into everything, but you should spend some time reading those first if you haven't already.
After hearing loads of negative feedback Bilt decided to offer a two path system going forward. You can stick with the somewhat convoluted Bilt Cash set up, or you can go down this trimmed down path. This is for people that only care about earning points on rent / mortgage payments. Even if that is you, it is a mistake to go down this road, but more on that later. Here is how Bilt 3.0 would look if you so choose to walk this path:
- You can turn down the 4% Bilt Cash earning and instead earn points for your mortgage payment based on the following spend:
- Spend 25%+ of your mortgage / rent payment on your Bilt card and you earn 1/2 a point per dollar on your payment
- Spend 50%+ of your mortgage / rent payment on your Bilt card and you earn 3/4 a point per dollar on your payment
- If you spend 75%+ of your mortgage / rent payment on your Bilt card and you earn 1 point per dollar on your payment
- Spend 100%+ of your mortgage / rent payment on your Bilt card and you earn 1.25 points per dollar on your payment
For the visual learners out there, this is how it would look for someone that has a $2000 a month rent or mortgage payment:
You can find the details of all of the changes, and the full announcement here.
Why This Is A Bad Deal
If Bilt had launched 2.0 with this set up I think it would have been better received. It is easier to understand, and it makes it seem like you are earning extra points for your spend, on top of whatever the card normally earns. It still would have been worse for many compared to the current no fee Bilt card, but it would have been understandable to make the system sustainable. That is true if you have a mortgage or rent payment at least. All would have been well if they had launched like this initially, but they already opened pandora's box with Bilt Cash, and they can't stuff that back in there for us – the educated.
Let the muggles Bilt 3.0 is designed for take it and run. I say that because this Bilt 3.0 set up lacks options and has some big downsides. Let's take a look at that same example above when compared to the Bilt 2.0 Bilt Cash set up:
- Spend $500, earn $20 in Bilt Cash
- Bilt 2.0: That is good enough to cover $666.66 in rent / mortgage payments ($20 / $0.03 fee) and earn 667 points
- Bilt 3.0: Earning 667 points falls below the 1000 points you would earn on the payment above
- Spend $1000, earn $40 in Bilt Cash
- Bilt 2.0: That is good enough to cover $1,333.33 in rent / mortgage payments ($40 / $0.03 fee) and earn 1,333 points
- Bilt 3.0: Earning 1,333 points falls just below the 1500 points you would earn on the payment above
- Spend $1,500, earn $60 in Bilt Cash
- Bilt 2.0: That is good enough to cover $2000 in rent / mortgage payments ($60 / $0.03 fee) and earn 2000 points
- Bilt 3.0: Earning 2,000 points is even to the 2,000 points you would earn above
- Spend $2000, earn $80 in Bilt Cash
- Bilt 2.0: That is good enough to cover $2000 in rent / mortgage payments (only need $60 / $0.03 fee), earn 2000 points and have $20 in Bilt Cash roll over to next month
- Bilt 3.0: Earning 2,000 points falls below the 2,500 points you would earn above, but you have $20 in Bilt Cash left. If you look at the first equation above, that is worth 667 points on a future payment.
These Numbers Don't Tell The Full Story
If you look at the two systems they initially look somewhat even. If you spend towards a higher amount of your mortgage each month you would be better off with Bilt Cash. But, if you spend 50% or less of your mortgage it looks like you would be better off in the Bilt 3.0 system. That isn't really true either, because Bilt 3.0 is inefficient and there is breakage.
Inefficient Zones
Every dollar you spend above $500, but below $1000, earns nothing in the above scenario with Bilt 3.0. You would still be earning Bilt Cash in Bilt 2.0 on that spend though. Let's say you spent $900 this month. You would still only earn 1,000 points on the Bilt 3.0 system, because you went over 25% of your mortgage, but didn't make it to 50%. With Bilt Cash you would earn 1,200 points for the mortgage / rent payment on that same spend since you capture every dollar.
Bad For Spend In Flux / Big Spend
The same could be said if you go above your mortgage spend each month. Once you hit $2,000 in the above scenario you earn no extra points for that spend in the Bilt 3.0 system. With Bilt Cash you continue to earn at the 4% rate in Bilt 2.0 above the spend needed. That is true even if you can't use it on your mortgage / rent payment that month. There in lies another rub, there is no rollover in Bilt 3.0. If you have some big bills hit one month it won't help you the next month. With Bilt Cash it does.
For example, let's say you have a $4,000 car repair bill. In the new system you would earn your 1.25x on $2,000 in spend for your mortgage / rent payment, but nothing for the second $2,000. With Bilt Cash you would have covered the spending needed to earn points on your mortgage / rent this month, next month AND still have $40 in Bilt Cash of the $60 needed for month 3!
Yearly Bilt Cash & Other Bonuses Change Things
Another thing to consider is the yearly Bilt Cash you get with the Palladium card. In Bilt 3.0 you wouldn't be able to use that to offset your rent / mortgage payments. That is a head start, and reduces the spending you need to do on the card each year in the Bilt 2.0 system. Look at it this way, $200 in Bilt Cash is $6,666.67 in spend you don't need to put on your card to earn points for your rent / mortgage payment ($200 / $0.03). You could instead put that spend on earning a sign up bonus, or two, somewhere else.
Less Flexibility
I had said that I don't even plan on using my Bilt Cash for my rent / mortgage payment if the system offers anything of value for redemption outside of rent / mortgage payments. If I can scoop up a ton of hotel stays with it then that is where I'll live with my Bilt Cash. Doing so reduces the spend I need to put on hotel cards elsewhere, or keeps my transferrable currencies transferrable versus moving them over to hotel programs.
That is a key difference between Bilt 2.0 and 3.0 too. If you lock into Bilt 3.0 then you have no options. Your spending goes to earning points on your rent / mortgage payment only. I have already shown how inefficient that system can be for your spend in the real world too, with lost opportunity on spend between (or above) the zones. With Bilt Cash you get the best of both worlds. And if you routinely spend over what you need to earn points on your mortgage, at least you have something extra to show for it. Bilt Cash is the no doubt choice of big spenders because of this. It is now up to Bilt to make Bilt Cash a program worth being interested in.
Bilt Is Making Changes: ToP Thoughts
Hopefully this clearly shows you why I am sticking with Bilt 2.0 and ignoring 3.0. I understand why Bilt is making changes, it is for the uninformed. It is a simplistic view on earning points for rent or mortgages. They already let the genie out of the Bilt Cash bottle though, and that is where the real ones will live. As long as they make Bilt Cash even somewhat useful outside of rent / mortgage payments that is. Let me know which way you are leaning in the Facebook Group.
