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 Bill
Mastercard
* 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 recently launched Mesa Homeowners Visa® Signature Preferred Credit Card*, also allows homeowners to earn credit card points for mortgage payments.
Clemons, a 35-year-old financial therapist at Therapy for living with freedom based in Connecticut, 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 lots of reward points in the process.
Since housing is the largest expense for most American families, using a credit card for big-ticket, current spending like rent or mortgage payments could make sense. But is using a home equity credit card worth the risk? Let's take a closer look.
Should you pay for housing with a credit card?
Paying for anything with a credit card, including housing, could be worth it, but it always depends on your budget and spending patterns. If you're financially strapped due to a recent job loss or have outstanding medical bills, you don't want your housing costs to pile up and put you further in the red.
However, if you feel confident that you can use the card conscientiously—meaning you can pay off the balance promptly when it comes due each month—using a credit card can be a good way to rack up points.
Clemons, for example, pays off her balance weekly. A portion of each paycheck goes directly to 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 heavy APR fees or fees.
“I can collect enough points to take the money off my rent,” she said. While it may only be a few extra dollars each month, the extra money can be put towards something, like a coffee on the way to work.
Beau Wyrick, a 38-year-old wealth advisor at Morton Treasure based in California, has been using the Bilt card to pay his rent for the past few years.
Earning rental points is a game-changer, so I recommend the Bilt card for that purpose,” Wyrick 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 you shouldn't pay for housing with a credit card?
The downside of paying for a home with a credit card is the accumulation of more debt if you don't have the money to cover the balance each month. It's often safer to pay for housing the traditional way, that is, by transferring funds via ACH from your bank account, writing a check, or via money order.
It's also important to check with your landlord or property manager about fees. Although 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 by credit card.
One way to avoid this with Built is to opt for BiltProtectwhich allows you to pay rent and earn points without touching your credit line. With this feature, funds are withdrawn directly from your linked bank account. If you choose not to use this feature, your rent will be charged directly to your Bilt Mastercard just like any other charge to your credit card.
Do housing-specific credit cards have requirements?
Credit cards that specialize in paying for your home have no unique requirements. To qualify for the Bilt Mastercard, you must be at least 18 years old and a resident of the United States or its territories. There is technically no minimum credit score to get approved, but a good to excellent score (670 to 850) is recommended.
To earn Bilt Card points, you'll need to make at least five transactions each billing cycle. To ensure you never miss that threshold, try setting your Bilt card as your default method for current spending.
For the Mesa card, anyone with an eligible device and access to the App Store and Google Play can directly join the waiting list, according to a company representative. Once you're invited to apply, you'll need 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?
Built MasterCard
Bilt offers 1x points per dollar on rentup to 100,000 points per year. To earn points, you'll need to use the card at least five times each monthly statement period. You can earn higher points when you spend on travel and restaurants. As a Bilt cardholder, you can earn special benefits at partner restaurants, fitness studios and ride-sharing apps.
You can transfer points through Built travel portal and collect extra points when you book a trip through the portal.
In addition to improving your credit score if you make on-time monthly payments, Bilt has the added feature of allowing you to opt-in to reporting your rent payments to the three credit bureaus, which can also increase your score.
Homeowner Visa Signature Preferred Credit Card
Currently, you'll need to get on a waiting list to sign up for the Mesa Visa card, which is available on the App Store and Google Play.
Mesa credit card has various awards rates depending on your purchase: 1x points per dollar of your monthly mortgage payments; 2x points for everyday essentials (eg groceries, petrol); 3x points on home-related transactions such as utilities, maintenance, decor and home improvement projects; and 1x points for everything else.
You can also take advantage of other perks like Sam's Club memberships and credit with Mesa brand partners like Thumbtack and Wag! Points earned can be redeemed for credit card, gift cards, travel and mortgage payments.
What protections are there with Bilt or Mesa?
Sharing sensitive information with another party can always introduce risks, so it is important to keep your account information secure.
Bilt and Mesa credit cards come with zero liability protection as standard to keep your sensitive personal and financial information safe from fraudulent activity. Since 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 transferring your payment information to your landlord, property manager or mortgage company,” said John Johnson, CFP and co-founder of A piece of wealth planning. “Look for other card features, such as fraud alerts or virtual card numbers, which can add an extra layer of protection.”
Are Home Equity Credit Cards Worth the Risk?
Each credit card has specific benefits and bonuses, so it's a good idea to research the pros and cons before applying. Bilt is more established and should soon expand its reach. Mesa is still quite limited in its reach, so it's worth doing more research on terms and conditions.
Financial experts say you should only use a credit card when you can afford to pay off the statement in full and avoid carrying a balance. Otherwise, it's easy to get into high-interest debt right away.
“Credit card programs are designed to encourage you to spend more money, period,” Wyrick said. “As long as you can keep yourself from falling into bad habits, go for it.”
*All Bilt Mastercard and Mesa Homeowners Preferred Credit Card information is independently compiled by CNET and has not been reviewed by the publisher.