Last week was a bit of a ride for fans of Bilt. The long story short version of what happens is that Bilt traded one Oneworld partner for another, though there was a few days between the two separate announcements.
For those not familiar, Bilt Rewards (or Bilt) is a reward program that lets you earn transferable points when paying for your rent, HOA fees, and (one day) mortgage payments. In its most basic form, Bilt works by allowing you to pay your providers using any credit card you like, even if they don’t accept a credit card. Bilt handles the actual payment via check or ACH, though they’ll assess a 3% fee on top of your payment. You can avoid this fee if your provider is a Bilt Partner or if you use the Bilt co-brand Mastercard (issued by Wells Fargo).
Bilt points transfer 1:1 to the following loyalty programs:
- HawaiianMiles
- American AAdvantage
- Air Canada Aeroplan
- Air France Flying Blue
- Cathay Pacific Asia Miles
- United MileagePlus
- Virgin Atlantic FlyingClub
- IHG
- Avianca LifeMiles
- Turkish Airways Miles & Smiles
- IAG Avios
- World of Hyatt
- Marriott Bonvoy
- Emirate Skyward
I’ve never used Bilt myself, but my friend The Credit Hacker loves it!
At any rate, two changes to their transfer partners were announced separately last week. And, on balance, I think this is a net-positive.
Bilt Traded One Oneworld Partner for Another
Early last week, we learned that Bilt would be ending its relationship with American Airlines. Sure, AAdvantage miles aren’t among the more valuable ones out there, but Bilt was the only transferrable currency (I guess, outside of Marriott Bonvoy) you could transfer from, save for a brief period in which Citi allowed ThankYou transfers, which made the news disappointing. No reason was given for the split, though such info is rarely ever disclosed. What we do know, though is that the relationship will officially end in June 2024.
So we know who got dropped as Bilt traded one Oneworld partner for another. Who, then, did they pick up? Announced last week Friday, Alaska Airlines is is taking American’s place! This is a HUGE deal, as Alaska MileagePlan is still one of the more valuable ones out there, and you can’t transfer anything into Alaska MileagePlan miles right now.
This relationship is live NOW, so there we’ll have a few months of overlap. However, beyond the base program, Bilt and Alaska will begin offering triple Alaska miles for paying your rent/HOA dues using your Alaska Airlines Visa Signature card via Bilt Rewards. However, it’s worth noting that doing this will incur a 3% payment processing fee.
Should You Use Your Alaska Card?
A 3% fee is pretty steep, especially given how expensive rent is nowadays. For ease of math, let’s say your rent is $2,000/month. That means you’ll have to pay $60/month in processing fees to Bilt, which comes out to $720/year. However, that $2,000/month will net you 72,000 Alaska Miles per year, 20,000 EQMs – automatically giving you MVP status – and will blow past the $6,000 spending threshold to earn your annual Companion Certificate.
Are all of those benefits worth the extra $720/year to you? Only you can answer that. But, to put that into perspective, Alaska miles are generally valued at $0.014 to $0.016 each. Splitting the difference, those 72,000 miles you’d earn are worth $1,080, meaning you’d come out $360 ahead. Of course, this value is subject to change at any time, so you really have to consider the opportunity costs.
Bilt Traded One Oneworld Partner for Another, Final Thoughts
Overall, I’d say that the fact that Bilt traded on Oneworld partner for another last week is a positive thing. Their new partnership with Alaska actually has me considering signing up to pay my HOA dues. But, as I’ve put a self-imposed moratorium on travel, it’s not something I’ll likely do this year. We’ll see, though.
What do you all think?
H/T: Gary Leff