Originally Posted by
Zodiac
I'm curious why people on here would think they are not sustainable? IMO they don't have a sustainability problem at all. Bilt only has a pseudo-sub, which only hardcore credit card enthusiasts will go out of their way to max out. ….
I think the part that is unsustainable is giving points for rent, for people whose buildings aren’t part of the Bilt Alliance (I’m assuming Bilt gets some upside from the buildings in the Alliance). Someone putting $3,000 per month in rent is getting 36,000 points a year, for which Bilt is getting no interchange whatsoever for those charges.
Add me to those who think Bilt is not sustainable (and thus I maintain a small Bilt points balance). The basic reason is their expenses may very well be greater than their revenues.
People undoubtedly prioritize paying rent so Bilt is probably making less in finance charges on balances due to rent payments. Bilt is a more sophisticated card than most other cards, Bilt cardholders are probably less likely to carry a balance (and thus pay finance charges).
I’m a good example. Met the quasi-SUB (pseudo-SUB) with tax payments, paid the balance in full, Bilt gave me over 62,500 points on my first statement which I immediately transferred (speculatively) to Hyatt, a value of $600-$1000. I don’t know how much of a swipe fee Bilt got, on $12,500 charges even 2% is only $250. Every month I get almost 2,000 Bilt points for an ACH rent (condo) fee payment and 5-6 small charges totaling $50-$100, not much in swipe fees.
We may be seeing the start of Bilt cost cutting as recent reports indicate the quasi-SUB is no longer being offered.
(BTW, my recent prediction track record is pretty good
. I accurately predicted
Aaron Rodgers would suffer a season ending injury within his first 2 Jets games.)