A few months ago, Laqueshia Clemons and her husband were looking for ways to earn more points on their credit cards. After poking around, they decided to give MasterCard Bilt* a go.
The Bilt MasterCard is a unique housing credit card designed to help you earn rent payment rewards. Later this year, according to a letter to members on its website, BILT will also offer points for mortgage payments. Another housing credit card, the Mesa Mesa Homeowners Signature VISA® Preferred Credit Card*, also allows homeowners to earn credit card points for mortgage payments.
Clemons, a 35-year-old financial therapist at Connecticut-based Freedom Life Therapy, 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, racking up a bounty of rewards points in the process.
Since housing is the largest expense for most American households, using a credit card for big-ticket, ongoing expenses like rent or a mortgage payment can make sense. But is it worth using a housing credit card? Let’s take a closer look.
Should you pay for accommodation with a credit card?
Paying for anything with a credit card, including housing, can be worthwhile, but it always depends on your budget and spending patterns. If you’re financially strapped due to a recent job loss or have unpaid medical bills, you don’t want your housing costs to accumulate interest and put you further in the red.
However, if you feel confident that you can use the card conscientiously—meaning you can immediately cover the balance when it’s due each month—using a credit card can be a good way to rack up points.
For example, Clemons pays off her balance every week. A portion of each payment goes straight toward credit card payments, and it never accrues interest. Because her cards are paid in full each month, she can earn points without getting hit with hefty APR fees or charges.
“I can build up enough points to take money off my rent,” she said. Although this may only be a few extra dollars each month, the extra money can go towards something, like coffee on the way to work.
Beau Wirick, a 38-year-old wealth advisor at California-based Morton Wealth, has been using the Bilt card to pay his rent for the past few years.
“Getting rental points is a game changer, so I recommend Bilt’s card for that purpose,” Wirick said. Wirick gets the best redemption value by transferring points and redeeming them through Bilt’s travel partners, which can be used on flights, car rentals, hotels and activities.
Why should you not pay for accommodation with a credit card?
Disadvantages of paying off housing with a credit card is piling up more debt if you don’t have the money to cover your balance each month. It’s often safer to pay for housing the traditional way, that is, by transferring funds through ACH from your bank account, writing a check, or through 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 has no transaction fees for rent payments), your landlord may impose a processing fee if you pay with a credit card.
One way to avoid this with BILT is to choose BiltProtect, which allows you to pay rent and earn points without dipping into your line of credit. With this feature, funds are withdrawn directly from your linked bank account. If you choose not to use this feature, your rental will be charged directly to your Bilt MasterCard just like any other charge on your credit card.
Do credit cards have specific housing requirements?
Credit cards that specialize in paying off your housing have no unique requirements. To be eligible for MasterCard Bilt, you must be at least 18 years old and a resident of the US or its territories. There is technically no minimum credit score to be approved, but a good to excellent score (670 to 850) is recommended.
To earn points on the BILT card, you will need to make at least five transactions each billing cycle. To ensure you never miss that threshold, try setting your Bilt card as the default method for recurring spending.
For the Mesa card, anyone with an eligible device and access to the App Store and Google Play can join the waiting list directly, according to a company representative. Once you’re invited to apply, you’ll be asked to provide additional information to get a credit decision on your application, similar to other unsecured consumer credit cards.
What rewards come with Bilt and Mesa cards?
Bilt MasterCard
Bilt offers 1x points per rental dollar, up to 100,000 points per year. To earn points, you’ll need to use the card at least five times in each monthly statement period. You can earn higher points when you spend on travel and restaurants. As a Bilt cardholder, you can score specials at partner restaurants, fitness studios and rideshare apps.
You can transfer points through Bilt’s travel portal and create additional points when you book trips through the portal.
In addition to improving your credit score if you make monthly payments on time, BILT has an added feature that allows you to choose to report your rent payments to the three credit bureaus, which can also boost your score.
Signing Mesa Homeowner Visas
Currently, you will have to get on a waiting list to register for the Mesa Visa card, which is available in the App Store and Google Play.
The MESA Credit Card has different rewards rates depending on your purchase: 1x points per dollar on your monthly mortgage payments; 2x points on daily essentials (eg, groceries, gas); 3x points on home-related transactions, such as services, maintenance, decor and home improvement projects; and 1x points for everything else.
You can also take advantage of other perks, such as Sam’s Club membership and credits with Mesa’s brand partners, such as Thumbtack and WAG! Points earned can be redeemed towards a statement credit, gift cards, travel and mortgage payments.
What protections are there with Bilt or Mesa?
Sharing sensitive information with another party can always present risks, so it’s important to keep your account information secure.
Bilt and Mesa credit cards come with standard zero liability protection to help secure your sensitive personal and financial information from fraudulent activity. Because Bilt is a co-branded MasterCard with Wells Fargo, it comes with 24/7 ID theft protection.
“You’ll want to make sure they have safeguards in place for transmitting your payment information to your landlord, property manager or mortgage company,” said Jovan Johnson, a CFP and co-founder of the estate planning division. “Look for other card features like fraud alerts or virtual card numbers, which can add an extra layer of protection.”
Are Housing Credit Cards Worth It?
Each credit card has specific benefits and rewards, 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 quite limited in its options, so it’s worth doing more research on the terms and conditions.
Financial experts say you should only use a credit card when you can afford to pay your statement in full and avoid carrying a balance. Otherwise, it’s easy to fall straight into debt from high interest charges.
“Credit card programs are designed to incentivize you to spend more money, period,” Wirick said. “As long as you can keep yourself from falling into bad habits, go for it.”
*All information related to Bilt MasterCard and Mesa Home Pronters Signature Loan Credit has been independently collected by CNET and has not been reviewed by the issuer.