A few months ago, Laqueshia Clemons and her husband were looking for ways to earn the most points on their credit cards. After poking around, they decided to give the bilt
MasterCard
* before.
The Bilt MasterCard is a unique housing credit card designed to give you rewards for paying rent. Later this year after one Letter to members Bilt also offers points toward mortgage payments on its website. Another homebuilding card, the recently launched MESA Homeowners Visa® Signature Preferred Credit Card* also allows homeowners to earn credit card points toward mortgage payments.
Clemons, a 35-year-old financial therapist Freedom therapy Based in Connecticut, it now uses the Bilt card to pay monthly rent, electricity, cell phone, car insurance premiums and streaming subscriptions. She and her husband put about $2,500 a month on the Bilt card while earning rewards points.
Since housing is the largest expense for most US families, use a credit card for big-ticket, ongoing expenses like rent or mortgage Payments could make sense. But is using a housing credit card worth the risk? Let’s take a closer look.
Should you pay for housing with a credit card?
It might be worth paying for something with a credit card, including apartments, but it always depends on your budget and spending patterns. If you’re strapped financially due to a recent job loss or have outstanding medical bills, you don’t want your housing costs to accrue interest and put you further in the red.
However, if you’re confident that you can use the card diligently – meaning you can cover the balance as soon as it’s due each month – using a credit card can be a good way to earn points.
Clemons, for example, pays out her balance weekly. A portion of each paycheck goes directly to credit card payments, and she never charges interest. Because her cards are paid in full each month, she can earn points without being hit with heavy APR fees or charges.
“I can build up enough points to take the money off my rent payment,” she said. Although that may only be a few extra dollars per month, the extra money could be misplaced for something, such as: B. Coffee on the way to work.
Beau Wirick, a 38-year-old financial advisor Morton wealth The California-based company has used the Bilt card for its rentals in recent years.
“Getting points for rent is a game changer, so I recommend the Bilt card for this purpose,” Wirick said. Wirick gets the best redemption value by transferring points and redeeming them through Bilt’s travel partners, which can be used for flights, car rentals, hotels and activities.
Why shouldn’t you pay for housing with a credit card?
The downside to paying for housing with a credit card is accumulating more debt if you don’t have the money to cover your balance each month. It is often safer to pay the traditional way, i.e. by transferring funds via ACH from your bank account, writing a check, or via a money order.
It’s also important to check with your landlord or property manager about fees. While the Bilt and MESA cards have no annual fees (and the Bilt card does not include transaction fees for rental payments), your landlord may impose a processing fee if you pay with a credit card.
One way to avoid this with Bilt is to opt for it BiltProtectThis allows you to pay rent and earn points without using your credit line. This feature draws funds directly from your linked bank account. If you choose not to use this feature, your rental will be billed directly to your Bilt MasterCard like any other charge on your credit card.
Do residential cards have requirements for housing businesses?
Credit cards that specialize in paying for your housing don’t have unique requirements. To be eligible for the Bilt Mastercard, you must be at least 18 years old and a resident of the United States or its territories. There are technically no credit minimums to be approved, but a good to excellent score (670 to 850) is recommended.
To earn points on the Bilt card, you must make at least five transactions each billing cycle. To ensure you never miss this threshold, try setting your Bilt card as the default method for ongoing charges.
For the MESA card, anyone with an eligible device and access to the App Store and Google Play can join the waitlist directly, a company representative said. Once you apply, you will be required to provide additional information to make a credit decision on your application, similar to other unsecured consumer credit cards.
What rewards come with Bilt and Mesa cards?
Bilt MasterCard
Bilt victim 1x points per dollar on rentup to 100,000 points per year. To earn points, you must use the card at least five times per monthly statement period. You can earn higher points when you spend on travel and dining. As a Bilt cardholder, you can receive special benefits at partner restaurants, fitness studios and RideShare apps.
You can transfer points through Bilt’s travel portal and earn additional points when you book trips through the portal.
Bilt improves your credit score when you make on-time monthly payments and has an additional feature that allows you to report your rental payments to the three credit bureaus, which can also Increase your score.
Mesa Homeowner Visa Signature Preferred Credit Card
Currently, you must be placed on a waiting list to sign up for the MESA Visa card, which is available on the App Store and Google Play.
The Mesa credit card has various rewards Interest rates depending on your purchase: 1x points per dollar on your monthly mortgage payments; 2x points on everyday essentials (e.g. groceries, gas); 3x points on home transactions such as utilities, maintenance, decor and home improvement projects; and 1x points on everything else.
You can also take advantage of other perks like Sam’s Club memberships and credits with Mesa’s brand partners like Thumbtack and WAG! Points earned can be redeemed toward a statement, gift cards, travel and mortgage payments.
What protection is available with Bilt or Mesa?
Sharing confidential information with another party can always introduce risks. Therefore, it is important to keep your account information secure.
The Bilt and MESA credit cards have a standard set of liability protections to ensure the safety of your sensitive personal and financial information from fraudulent activities. Because Bilt is a co-branded Mastercard with Wells Fargo, it comes with 24/7 ID theft protection.
“You want to make sure you have protections in place to transfer your payment information to your landlord, property management company or mortgage company,” said Jovan Johnson, CFP and co-founder of CFP and co-founder of Wealth planning. “Look for other card features like fraud alerts or virtual card numbers that can add an additional layer of protection.”
Are housing credit cards worth the risk?
Every credit card has certain benefits and bonuses. So it’s a good idea to research the pros and cons before applying. Bilt is more established and should expand its reach soon. Mesa is still fairly limited in its range, so it’s worth doing more research into the conditions.
Financial experts say you should only use a credit card if you can afford to pay off your return in full and avoid a balance. Otherwise, it is easy to immediately fall into debt due to high interest costs.
“Credit card programs are designed to encourage you to spend more money,” Wirick said. “As long as you can stop yourself from falling into bad habits, go for it.”
*All information about the Bilt MasterCard and Mesa Homeowner Visa Signature Preferred Credit Card was collected independently by CNET and has not been verified by the issuer.
