TAMPA, Fla. — Housing costs are one of the biggest expenses for most households. A bank is releasing a rewards program for people who pay their rent.
You've most likely seen your rent go up this past year. Wells Fargo's new credit card is helping renters take their biggest expense and turn it into rewards.
Bilt Rewards is the first loyalty program that lets renters earn points when they pay their rent with no fees.
“That’s the real game changer here, because typically landlords don’t accept credit cards or if they do they tack on a transaction fee,” Bankrate.com Senior Industry Analyst Ted Rossman said.
With the Bilt Rewards credit card, tenants can earn rewards at more than two million rental homes across the country. Points earned through this apartment rewards program can be used to cover your rent, travel or a down payment on a home.
According to the bank, renters can get up to 50,000 points a year and receive one point per dollar spent on rent. But is it worth it?
“I think the sweet spot here is somebody who spends a pretty hefty amount on rent. For example, if you want to max out that 50,000 points a year, you need to spend over $4,000 a month on rent,” Rossman said.
Daycare bills offer another way to rack up huge rewards. Various credit cards allow you to pay your daycare bill and earn valuable travel rewards or cash-back.
Financial experts say it’s only smart to charge everyday bills to a credit card if you can pay your bill in full every month and avoid interest.
“Any rewards credit card is going to be a bad deal if you’re carrying a balance because the average credit card charges 16.5%, so it’s just not worth it,” Rossman said.