The latest launch of Bilt 2.0 has created a buzz in the points and miles community. What was expected to be a simple upgrade has turned out to be a puzzle of options and unanswered questions. The key to all this confusion is one important question: How are cardholders supposed to earn points on rent/mortgage payments in the new structure?

With multiple credit cards, two different ways of earning, and a brand-new currency called Bilt Cash, to determine which one provides the best return, you need more than just common sense. You need math.

This guide will walk you through the new structure of Bilt 2.0 earnings and help you determine which method of earning rewards might be the most rewarding for you based on your spending habits.

Understanding the Big Shift in Bilt 2.0

Bilt 2.0 launched three new credit cards, each catering to a different kind of user. Though the annual fees and rewards differ, there is one thing common to all three cards: they offer 4% cash rewards in Bilt Cash.

Bilt Cash is a new form of internal currency that can be used to pay off the 3% processing fee that is charged when paying rent or a mortgage through Bilt. In other words, if you have enough Bilt Cash, you can pay off the fee and start earning Bilt points.

It is still possible to pay rent or a mortgage with no fees at all, but this will give a reward of zero points, which is not the point of being a rewards user.

The Extra Complexity of Bilt Cash

Every Bilt card comes with a different amount of initial Bilt Cash in the first year:

• Entry-level card: $100
• Mid-tier card: $200
• Premium Palladium card: $500 (including a sign-up bonus and annual benefit)

This initial balance makes a huge difference in lowering the amount of spending needed to activate point earning on housing. However, there is a catch. Only $100 of Bilt Cash can carry over at the end of the year, and other uses of Bilt Cash are not clear.

It is the combination of incentives and limitations that makes Bilt Cash so powerful yet complex.

The Surprise Twist: A Second Way to Earn Points

Only days after the release of Bilt 2.0, the company launched a new way to earn money, commonly called “Option 1.” This approach does not involve Bilt Cash at all.

For Option 1, cardholders earn a fixed number of Bilt points per dollar spent on housing payments based on how much they charge to their Bilt card each month:

• 0.5x points
• 0.75x points
• 1.0x points
• 1.25x points

The more you pay each month on the card, the greater your housing multiplier will be. This applies no matter which Bilt card you have.

However, Bilt has not explained how often users can switch between Option 1 and the Bilt Cash method, adding another layer of uncertainty to the process.

First-Year Value Is Dominated by the Palladium Card

With the help of its 50,000-point welcome bonus and higher initial Bilt Cash balance, the Palladium card offers the best first-year return. Even after considering the card’s annual fee of $495, the total value can be over $2,800 if the Bilt points are redeemed at 2 cents per point.

The other two cards continue to perform well, but without the large welcome bonus, they are well behind in year one.

Ongoing Value Depends on Personal Spending Patterns

However, after the first year, the choice becomes more complex. The superior card will be determined by three significant considerations:

How you value Bilt points

At higher valuation levels (about 2 cents per point), the Palladium card continues to be the best. At lower valuation levels, the middle card may be more valuable.

How much non-bonused spend you can redirect

If you are already earning 3x-4x points on dining and groceries with other credit cards, then these purchases may not be the best fit for Bilt.

How much you value the benefits

The value of benefits such as Priority Pass or hotel credits may not be relevant if you already have high-end travel credit cards issued by other banks.

On a strictly points-per-dollar basis, the Palladium card is capable of earning more than 3.3 Bilt points per dollar on non-bonus spending.

Bilt Cash vs. Option 1: Which Housing Strategy Wins?

This is where the math gets truly surprising.

When calculating points earned per dollar of housing expense, the Bilt Cash approach always fares better than Option 1, and this is particularly true in the first year.

Since the Palladium card comes with $500 in Bilt Cash, this means that almost half of the annual amount required to unlock housing points is already met. This significantly increases the rate at which points are earned.

But what's even more surprising is that, in the case of Option 1, the highest multiplier (1.25x) yields the lowest return per dollar of housing expenditure.

The optimal rate for Option 1 is achieved at lower spending thresholds, but this also limits the number of points that can be earned in a year.

The Opportunity Cost Most People Overlook

Another important consideration is the opportunity cost.

To use Option 1, you need to spend every month on your Bilt card. This means that you need to divert your spending from other cards that may give you higher rewards in certain categories, such as dining or groceries.

The Bilt Cash strategy is much more flexible. You can front-load your spending in the beginning of the year, save up enough Bilt Cash, and then cut back on your spending in the latter months while still earning points on housing.

This makes it easier to go after other sign-up bonuses in a given year without having to keep track of the monthly thresholds.

Total Return: Why the Numbers Favor Bilt Cash

When factoring in:

• 2x points on all Palladium card purchases
• Points earned on housing
• First-year Bilt Cash bonuses

The total return becomes highly attractive.

Even in the worst-case situation, consumers can earn as much as 3.25 points per dollar on net spending. In the first year, this amount can go up to 4.4 points per dollar.

In the later years, without the sign-up bonus, the returns are still around 3.6 points per dollar, which is significantly higher than the 2x “catch-all” cards that are normally recommended for their ease of use.

Conclusion:

Simplicity has its charm, but rewards optimization will often reward those who do the math. While Bilt 2.0 may not be the most beginner-friendly option, its earning potential is difficult to ignore. For users who are concerned with long-term value, flexibility, and maximizing points from everyday spending, earning and using Bilt Cash remains the best approach, especially in the first year.

If more clarity comes to light in the coming weeks, Bilt may make the program easier to understand. Until then, the best way to turn confusion into big rewards is through informed decision-making.