Bilt just detonated a pricing grenade in the credit card market. The company unveiled Bilt 2.0, a suite of cards that cap APRs at 10 percent and boost rewards on housing costs, including rent and, in select cases, mortgage payments. The move cuts against an industry where average APRs often sit north of 20 percent. It puts direct pressure on big issuers to rethink how they price risk and reward loyalty.
What Bilt 2.0 Changes
Here is the headline: a hard 10 percent ceiling on interest, plus richer earn on the single largest expense in most budgets, housing. That combination is rare. Lenders usually price higher to cover losses, fund rewards, and ride the rate cycle. Bilt is betting that lower interest, smarter underwriting, and housing-linked loyalty can build a stickier, more profitable customer base.
- 10 percent max APR, far below typical card rates
- Rewards on rent and some mortgage payments, with limits
- A reworked card lineup that centers on housing spend
- A pitch to both transactors and revolvers, not just points chasers
This is not charity. It is a strategic land grab. Renters are often ignored in premium rewards. Mortgage payments are even harder to reward, since processors take a cut. If Bilt can reduce friction and fees on these flows, it can pull share from banks that lean on travel and dining.
A 10 percent cap cuts borrowing costs sharply. It also forces rivals to explain why they charge double that rate.
Why Now
Household interest costs have surged in recent years. Card balances have climbed, and late payments have ticked up. At the same time, political pressure to lower card rates has grown, on both sides of the aisle. Calls for caps and fair pricing have gotten louder, including from Donald Trump. Bilt is seizing that moment. The company is writing a clean, simple promise that voters and consumers can understand. Ten percent, full stop.
For incumbents, this is a messaging problem as much as a math problem. The spread between funding costs and 20 percent plus APRs is hard to defend in the court of public opinion. A credible competitor with a 10 percent cap changes the narrative.
Can 10 Percent APR Work
It can, but only with discipline. Credit cards earn money from three pillars, interest on balances, interchange on purchases, and fees. Drop the first pillar, and the other two must carry more weight.
Bilt’s math likely rests on four levers. First, tighter underwriting, so fewer high risk customers get through. Second, lower credit limits for new users, so losses are capped. Third, higher engagement on housing, which is large, predictable spend. Fourth, partnerships that reduce processing costs on rent and mortgage flows.
Losses will be the swing factor. If credit performance stays stable, 10 percent looks punchy yet doable. If the economy slides and charge offs rise, the model gets strained fast. Investors should assume the portfolio will skew prime and urban, where rent rewards resonate and incomes are steadier.
If you pay in full each month, the APR does not hit you. Treat the 10 percent cap as protection for life’s surprises, not a reason to carry debt.
Winners, Losers, and Competitive Pressure
Consumers with rent or a mortgage are the clear winners. Housing rewards can turn a dead spend into points or cash value. Small landlords could benefit if Bilt streamlines payment acceptance. Travel partners may see more points flow into their ecosystems.
The losers, at least at first, are issuers that depend on high APRs and penalty fees. A 10 percent ceiling puts a line in the sand. If customers flock to Bilt, others must respond, with lower rates, better rewards, or both.
Card networks and processors will watch margins on rent and mortgage payments. Those transactions can be costly. If Bilt has found a cheaper path, expect fast follow from rivals.
Mortgage rewards will come with rules. Expect limits, fees for certain payment methods, and partner constraints. Read the fine print before you reroute your loan payment.
Investment Take and What to Watch
This is a real test of price competition in consumer credit. If Bilt gains share while holding losses in check, big banks will need to move. That could compress net interest margins on cards, but it may also spark innovation on underwriting and loyalty. Watch three gauges in the months ahead. Portfolio delinquency rates at Bilt, competitor rate moves on new offers, and any policy steps in Washington that nudge card pricing lower.
For fintech investors, this is a proof point. A focused product, clear price, and a big use case can still break through. For bank investors, the risk is erosion of a very profitable line. The first to match on rate without gutting rewards will earn a rerating from the market.
Conclusion: Bilt 2.0 is not a gimmick. It is a bold, consumer friendly bet that challenges the high rate status quo. The economics will be tested by credit cycles and real world behavior. But the signal is clear. Card pricing is back in play, and housing spend is the new battleground.
