credit limit

Apache is functioning normally

Our rating

Bilt Mastercard

  • Regular Rewards Rate: 1x points on most eligible purchases (including rent)
  • Bonus Rewards Rate: 2x points on travel purchases and 3x points on dining purchases
  • Annual Fee: $0
  • Ongoing APR: 20.99%, 23.99%, or 28.99%, based on your creditworthiness
  • Credit Needed: Average or better

.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrappadding:23px 23px 23px 23px;background-color:#f9fafa;border-color:#cacaca;border-width:1px 1px 1px 1px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-contents-titlefont-size:14px;line-height:18px;letter-spacing:0.06px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:700;text-transform:uppercase;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrap .kb-table-of-content-listcolor:#001c29;font-size:14px;line-height:21px;letter-spacing:0.01px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:inherit;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrap .kb-table-of-content-list .kb-table-of-contents__entry:hovercolor:#16928d;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-list limargin-bottom:7px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-list li .kb-table-of-contents-list-submargin-top:7px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:beforebackground-color:#f9fafa;

You can pay rent with any credit card and earn rewards on the entire payment. But even if your credit limit can accommodate the transaction, there’s a catch: You generally have to use a payment portal that tacks 2% to 4% onto the transaction. That’s more than enough to offset any rewards you’d earn.

Bilt Mastercard offers a way around that. It has a built-in rent payment portal that lets you pay your rent without the transaction fee. You earn a 1% return on those rent payments too.

Transaction-fee-free rent payments with rewards is Bilt Mastercard’s biggest selling point, but it’s not the card’s only notable feature. Bilt Mastercard has some additional upsides — and downsides — to consider before you apply.

What Is Bilt Mastercard?

Bilt Mastercard is a rewards credit card with no annual fee. It’s one of the few credit cards that waives transaction fees on rent payments, significantly reducing the cost of paying rent with a credit card.

Bilt Mastercard has an above-average rewards program that earns points on everything you buy — double and triple points on common purchases like travel and dining. Heavy spenders can move up the Bilt Rewards hierarchy, earning points toward travel, experiences, or even a down payment on a house.

What Sets Bilt Mastercard Apart?

Bilt Mastercard has a few unusual features that set it apart from most rewards credit cards.

  • No transaction fee on rent payments. When you pay your rent with Bilt Mastercard, you don’t pay a transaction fee. That’s a big advantage over other rent payment portals, which charge at least 2% for rent payments.
  • The opportunity to build credit through rent payments. If you live at any of the more than 1 million units in the Bilt Rewards Alliance, a group of 20-plus property management companies, you can opt into a credit reporting program that alerts the major credit bureaus to your rent payments. That can become part of your strategy to build or rebuild credit faster. 
  • Double points on the first day of the month. Bilt Mastercard doubles your point earnings on all purchases you make on the first of the month — Rent Day. That’s 6x points on dining purchases, 4x points on travel purchases, and 2x points on everything else. Plan your spending accordingly, especially big-ticket purchases.

Is Bilt Mastercard Legit?

Yes, Bilt Mastercard is legitimate. While Bilt itself isn’t very well known, this credit card is backed by Wells Fargo, one of the biggest banks in the United States (and world). 

Funds held with Wells Fargo are FDIC-insured, and it’s one of the few banks qualifying as “too big to fail,” so it’s not going anywhere. If it does, we all have bigger problems than whether this one credit card is a scam.

Key Features of Bilt Mastercard

Bilt Mastercard touts its transaction fee-free rent rewards. But that’s just one feature on a much bigger menu.

Earning Bilt Rewards

Bilt Mastercard has a tiered rewards program. The rewards you earn depend on what category your purchase falls into. But overall, it’s a generous rewards program.

  • Unlimited 3x rewards on dining: Earn 3 points per $1 spent on eligible dining purchases, including takeout and delivery.
  • Unlimited 2x rewards on travel: Earn 2 points per $1 spent on travel booked directly with the provider, including airfare, hotels, rental cars, and cruises. Purchases through third-party booking engines like Expedia may not qualify.
  • 1x rewards on rent payments: Earn 1 point per $1 spent on rent payments, even if your unit isn’t part of the Bilt Rewards Alliance. Bilt caps rent rewards at 100,000 points each year, high enough for most cardholders.
  • Unlimited 1x rewards on everything else: Earn 1 point per $1 spent on all other eligible purchases.

You have to make at least five transactions in a statement period to earn rewards for that period. That rules out using Bilt Mastercard for rent payments only.

Redeeming Bilt Rewards

You can redeem Bilt rewards for:

  • Direct travel purchases with over 100 airline and hotel partners
  • Transfers to more than a dozen airline and hotel partners, generally at a 1-to-1 ratio
  • Rent payments
  • Credit toward a down payment on a home
  • Experiences and merchandise, including classes with fitness partners like SoulCycle and home decor and apparel brands in the Bilt Collection

Redemption minimums and values vary, but if you travel regularly, the most reliable value comes from transfers to airline and hotel partners. Otherwise, rent payments are your best bet.

Bilt Rewards Status Levels

Bilt’s rewards program has four tiers based on your annual point earnings. Each tier unlocks new benefits:

  • Blue: Everyone starts as a Blue member. 
  • Silver: Unlocks when you earn 25,000 points in a calendar year. Perks include a 10% bonus on Bilt points when you begin or renew an apartment lease with a Bilt Rewards Alliance members. So if your first month’s rent on a qualifying lease is $2,000, you earn 200 bonus points. 
  • Gold: Unlocks with 50,000 points earned in a calendar year. With Gold, the points bonus for a new or renewed lease jumps to 25%. Plus, you get access to Bilt’s Homeownership Concierge, a homebuying consulting service.
  • Platinum: Unlocks with 100,000 points earned in a calendar year. The lease incentive bonus increases to 50% and you get an exclusive gift from the Bilt Collection — typically some sort of home decor item.

Building Credit With Rent Payments

If you wish, you can allow Bilt to report your rent payments to the three major credit bureaus (Experian, Equifax, and TransUnion). That may help you build credit faster, especially if you don’t have many other credit accounts. But it can also hurt you if you stop paying rent for any reason or you’re late on rent payments.

Travel Benefits

Bilt Mastercard has some potentially valuable non-rewards travel benefits too.

  • Trip cancellation and interruption coverage reimburses nonrefundable prepaid reservations you have to cancel so long as you have a valid reason, such as illness
  • Trip delay reimbursement covers nonrefundable prepaid reservations you can’t honor due to covered flight or other transport delays
  • Car rental insurance covers costs related to collision damage to your rental car when you pay for the rental in full with your Bilt card and decline the rental company’s offer of coverage

Additional Benefits

Bilt Mastercard has some other complimentary benefits:

  • $5 Lyft credit per statement period when you complete at least three rides
  • $5 credit off your first DoorDash order each month
  • Three-month complimentary DoorDash DashPass subscription, which waives the delivery fee on eligible orders
  • Cellphone protection, which covers damage and theft up to $800 per claim (less a $25 deductible)

Ongoing APR

From day one, Bilt Mastercard’s APR is 20.99%, 23.99%, or 28.99%, based on your creditworthiness. There’s no introductory APR promotion for purchases or balance transfers.

Important Fees

Bilt Mastercard has no annual fee or foreign transaction fees. Other fees may apply, including balance transfer and cash advance fees.

Credit Required

Bilt Mastercard has relatively laid-back standards. It’s not for people with bad credit, but your application may be approved, even if your FICO credit score is below 700. For more information, see our article about good versus bad credit scores.

Advantages

Bilt Mastercard has an above-average rewards program, multiple perks and benefits for renters, and some potentially valuable benefits for cardholders who use rideshare and restaurant delivery services.

  • Up to 3x points on eligible purchases. Bilt Mastercard earns 3 points per $1 spent on dining purchases, on par with premium dining credit cards like Chase Sapphire Reserve.
  • Earn rewards on rent payments without the transaction fee. Bilt Mastercard earns 1 point per $1 spent on rent payments. That’s nice, but the real value is in the transaction fee waiver, which can save you 2% to 4% when compared to other rent payment portals.
  • Earn double points on Rent Day. Bilt Mastercard doubles rewards on all purchases made on the first of the month. That boosts the maximum return to a very generous 6x.
  • More points as you ascend status levels. Earn at least 25,000 points in a year to unlock higher status levels, with benefits like bonus points on new and renewed leases at Bilt Alliance properties.
  • No annual fee. Bilt Mastercard has no annual fee, so you won’t pay anything to keep it around. This is a welcome contrast with some other premium dining and travel credit cards.
  • DoorDash and Lyft perks. They won’t make you rich, but Bilt Mastercard offers perks for regular DoorDash and Lyft users (or users willing to switch). Both are worth at least $5 per month if you meet the qualifications.
  • Relaxed standards. Bilt Mastercard has looser standards than many competing cards, which require FICO scores above 700 to qualify (and sometimes well above). 
  • Opportunity to build credit with rent payments. If you live in a unit managed by a member of the Bilt Rewards Alliance, you can agree to have your rent payments reported to the major credit bureaus. That can build your credit faster than simply using your credit card, though it can also hurt your credit if you stop paying rent.

Disadvantages

Bilt Mastercard is missing some common rewards card features and falls flat on purchases outside the dining and travel categories, among other disadvantages. 

  • Minimum transaction requirement to earn rewards. You must make at least five transactions in a statement period to earn rewards for that period. 
  • Low rewards rate on most purchases. Even if you clear the transaction threshold, you earn just 1 point per $1 on most purchases. That’s lower than competing credit cards like Chase Freedom Unlimited (1.5% back on most purchases) and Citi Double Cash (2% back on all purchases when you pay in full).
  • No sign-up bonus. Bilt Mastercard has no spend-based sign-up bonus. Many other no-annual-fee rewards cards do, so that’s a notable absence.
  • No 0% APR introductory offer. Bilt Mastercard also has no 0% APR introductory offer, which is a big downside for new cardholders looking to finance big purchases or pay off high-interest balances from another card.

How Bilt Mastercard Stacks Up

Bilt Mastercard really leans into its rent payment benefits, but if you zoom out, it looks like a fairly typical travel and dining credit card. So before you apply, see how it stacks up against another popular credit card that rewards dining and travel: the Chase Sapphire Preferred Card.

Bilt Mastercard Chase Sapphire Preferred
Dining Rewards Unlimited 3x Unlimited 3x
Travel Rewards Unlimited 2x Unlimited 2x or 5x
Base Rewards 1x (limited only on rent) Unlimited 1x
Double Points Day Yes No
Travel Credit None $50 on eligible hotels
Sign-Up Bonus None Yes
Rent Transaction Fee None Yes
Annual Fee $0 $95

Final Word

Bilt Mastercard is the best credit card to use for rent payments because it waives the customary transaction fee, which can add 2% to 4% to the cost, depending on which payment portal you use. It has some other benefits too, including unlimited 3x rewards on dining purchases and unlimited 2x rewards on travel purchases. And it has no annual fee.

But Bilt Mastercard has some meaningful drawbacks. It lacks a sign-up bonus or 0% APR introductory promotion, and its baseline rewards rate is low. Most important, you have to make at least five transactions in a statement period to earn rewards for that period, which rules out getting it just to use on rent payments or infrequent use in general. 

Still, Bilt Mastercard is a contender if you’re a renter in the market for an entry-level rewards credit card. 

The Verdict

Our rating

Bilt Mastercard

  • Regular Rewards Rate: 1x points on most eligible purchases (including rent)
  • Bonus Rewards Rate: 2x points on travel purchases and 3x points on dining purchases
  • Annual Fee: $0
  • Ongoing APR: 20.99%, 23.99%, or 28.99%, based on your creditworthiness
  • Credit Needed: Average or better
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.

Source: moneycrashers.com

Apache is functioning normally

It’s the stuff of nightmares: You’re footing the bill for an important dinner, only to be quietly told by the server that your card has been declined. That’s one possible outcome of attempting to charge above your card’s credit limit.

Credit card issuers determine your credit limit when you apply for a card, basing their decision on your personal financial information including income, other debts and payment history.

Sometimes, though, an extra-expensive month or unanticipated major purchase means you risk going over your credit limit. (Having a low credit limit to begin with also puts you at risk of exceeding it.)

But depending on the terms of your card, you may be able to charge above your credit limit — although by just how much is unclear. And even if the charge goes through, you may face other consequences.

Here’s what happens when you go over your credit card’s credit limit.

🤓Nerdy Tip

A credit limit is the amount you can charge to your credit card during any given billing cycle. With most cards, once you pay your credit card bill — even if you make a payment that’s lower than the total due — you can charge up to the credit limit again during the next billing cycle. Over time, the card issuer may adjust that limit if there are changes to your income level or spending. You may also be eligible for a credit limit increase just by requesting one.

A declined charge or over-limit fee

If you attempt to charge beyond your credit limit, it’s possible your credit card will be declined at the point of purchase, which can make for an embarrassing moment. But that’s not always the outcome.

Some credit card issuers will allow you to go over your credit limit at their discretion or if you opt in to the ability to do so. Capital One, for example, won’t charge you a fee for over-limit purchases when you opt in to this service, while Chase may let you opt in but in some cases will charge a fee. However, the amount that you’re approved to go over isn’t predictable, and this isn’t an open invitation to keep adding charges to your account. The issuer may put other limits on your account until you make a payment. (See below.)

The Credit Card Act of 2009 put some rules in place to curb over-limit fees, and these fees have become rare. In any case, card issuers can’t approve an over-the-limit purchase — and charge a fee for it — unless the cardholder opts in to allow it.

A higher minimum payment or more immediate due date

Even if an issuer allows you to exceed your credit limit, the company may increase the minimum payment due by the amount you charged above your credit limit. This means the over-limit charges must be paid at the end of that billing cycle, and you can’t carry that as part of your credit card balance.

You might also be on the hook to immediately repay the excess amount (or even the total balance due), without the ability to wait until the bill arrives as usual.

🤓Nerdy Tip

Note that charge cards work differently from traditional credit cards. A charge card has no set spending limit, so there’s generally no credit ceiling to “exceed.” However, unlike with credit cards, a charge card requires you to pay your bill in full each month. You typically can’t carry a balance.

A pause on more charges

Some issuers will stop you from putting additional charges on your card until you make a payment that puts your account back below its limit. This can also include other transactions like cash advances or balance transfers.

Changes to your card’s terms

Issuers reserve the right to change some of your card’s terms at any time, including the credit limit and interest rate. They may also close your account.

A decrease in your credit scores

One factor that’s part of calculating your credit scores is your credit utilization ratio, which is the amount of your total credit limit that you charge. In general, we recommend charging no more than 30% of your limit (and less is even better). Exceeding your credit limit or maintaining high balances can lower your credit scores over time.

An issuer opting to close your account can also affect your scores because losing an account can lower the average age of your accounts and decrease your overall credit limit, making it that much easier to max out other credit cards later.

Ways to avoid going over your credit limit

  • Set up alerts: Adjust your account preferences on the issuer’s website or app so you’ll receive a text or email when your card balance reaches a certain amount. You can also get alerts when your payment deadline is close or when a charge over a certain amount is made on your card.

  • Make small payments throughout the month: You don’t have to wait until the due date to make one big payment. Making multiple smaller payments throughout the month can help you maintain a smaller balance and lower the risk of going over the limit.

  • Ask for a credit limit increase: A low credit limit may not match what you need from your credit card. You can call the number on the back of your card to see whether you’d be eligible for a credit limit increase.

  • Open another credit card: If your current issuer declined your limit increase request, applying for an additional credit card may be the solution. It’ll raise your total credit limit and give you another card to fall back on for unexpected expenses. Just be extra careful because managing multiple credit cards can get more complicated.

Source: nerdwallet.com

Apache is functioning normally

If your parents are retired or nearing retirement and concerned about their finances, they might float the idea of getting a reverse mortgage past you.

After all, in that commercial, that nice man from Law & Order says that it’s a great way to get supplemental income in retirement.

Unfortunately, there is a great deal that the commercial leaves out.

And these issues are something that the reverse mortgage holder’s family—that is, you—will likely have to deal with.

After all, your parents aren’t getting any younger.

Here is the breakdown of what those in the Sandwich Generation need to know about reverse mortgage disadvantages—before Mom and Dad sign on the dotted line:

How Reverse Mortgages Work

At its core, a reverse mortgage is a way to convert the equity in a home into cash. In order to qualify for a reverse mortgage, the homeowner must be at least 62 years old, must own and live in the home, and must have substantial equity in the home. While lenders do not require that the home be completely paid off, the homeowner must be close to the end of their mortgage term in order for the lender to agree to a reverse mortgage.

With this loan, the lender will pay off whatever remains on the mortgage (if anything), and give the homeowner a payout in one of five ways: Tenure payments are monthly payments that will last for as long as at least one borrower still lives in the home. Term payments are monthly payments for a fixed period. A line of credit will allow the borrower to draw unscheduled payments for any amount whenever needed until the credit limit is maxed out. Finally, modified tenure and modified term payments combine the monthly payment option with the line of credit option.

Unlike a traditional loan, the borrower does not need to make regular payments in installments. Instead, the entire loan plus interest will come due when the borrower passes away, sells the house, or can no longer consider the home a primary residence.

For instance, if an elderly homeowner finds himself needing regular care, permanently moving to a nursing home will mean he has to pay back his reverse mortgage. However, the borrower has 12 months of living elsewhere before the home is no longer considered his primary residence. So a short time in a hospital or nursing home will not mean that the reverse mortgage is due.

One of the big benefits to a reverse mortgage is that the payments you receive from them are not considered taxable income. In addition, the payments will also generally not affect your Social Security or Medicare benefits. On those grounds, a reverse mortgage can seem like a good way for retirees to supplement their retirement income with their home equity without having to downsize or move.

The Fine Print

So far, so good. However, there are several aspects to reverse mortgages that can make them seem like less of a good deal.

First and foremost is the fact that you owe more money through a reverse mortgage as times goes on.

At the end of the loan term, either the borrower or his heirs will have to pay back the amount of the loan—which grows with each payment made to the borrower—plus interest.

As for that interest, while there are some fixed-rate reverse mortgages, the majority of these loans use variable rates. (It is important to note that the usual way of paying off the loan is by selling the house, meaning reverse mortgage holders and their heirs do not actually have to cough up the amount of the loan when it is due, unless they want to keep the house.)

In addition, the entire point of the reverse mortgage is to cash out the equity. That means that the old homestead will have no equity (or very little) left at the end of the loan term. So sale of the house will leave no cash for the heirs.

If the borrower’s heirs are interested in keeping the home, they will have to pay off the loan in order to do so. Most reverse mortgages offer something called a non-recourse clause, which means the borrower cannot owe the lender more than the value of the home when the loan is due and the home is sold. Basically, whatever the home sells for will satisfy the loan. However, heirs who want to keep the home will still have to pay back the loan in full, even if the amount owed is more than the home is worth.

It’s important to remember that reverse mortgages are not free. Just like any mortgage, there are closing costs, including loan origination fees and mortgage insurance premiums. Some lenders also charge servicing fees during the life of the reverse mortgage.

Also, the amount that can be borrowed is dependent on several factors, including the youngest borrower’s age, the interest rate, and the appraised value of the house. So even homes that are worth quite a lot may not provide the kind of reverse mortgage amounts that borrowers are counting on.

Finally—and this can be a real kicker for the adult children of reverse mortgage holders—the homeowner still maintains the title for the house, which means he is still on the hook for maintenance, property taxes, and homeowner’s insurance. In fact, failing to maintain the condition of the house or pay taxes or insurance on it can mean that the loan becomes due. If your parents are having trouble keeping up with their household chores—including home maintenance and bill paying—these sorts of jobs will fall on you.

What Are Reverse Mortgage Disadvantages?

The answer to that depends upon several factors. First of all, your family needs to decide how important it is to keep the house in the family. If your parents are talking about taking a reverse mortgage on the house where you and your siblings were born and where you’ve dreamed of seeing your own grandchildren play in the future, then a reverse mortgage might not be a great idea. Unless you know you will be able to pay back the loan, you should plan on having to sell the house once your parents have entered into a reverse mortgage.

If the home is meaningful to your family, an alternative to a reverse mortgage is for someone in the family to buy the home from your parents and allow them to continue living in it. This will provide them with the equity in their home in a lump sum, and if that equity is $500,000 or less, they can exclude the money from their taxable income. In many ways, this is a win-win, although it does depend on someone in the family having the ability to purchase the house.

Even if you have no particular attachment to your parents’ home, you may want to think carefully about whether or not to pursue a reverse mortgage. Depending on their ability to live independently and keep up with the important tasks of homeownership, a reverse mortgage may or may not be a good idea.

If you have reason to believe that Mom and Dad only have a few years before they will need some serious help, it might make more sense to access the equity in the home by selling it and getting them moved to retirement home or assisted living facility where they will be more comfortable.

If, on the other hand, you know your Dad still fixes the roof, strings the Christmas lights, and mows the lawn, while your Mom still cleans the house from top to bottom and weeds the flowerbed every day and nothing is going to stop them, thank you very much, then a reverse mortgage might work for them. They will get to stay in their home while still enjoying the equity they worked to build up.

Are Reverse Mortgages a Good Idea?

The real issue with reverse mortgages is why your folks might need one. If they did not save adequately for retirement because they were irresponsible with their money, or if they have trouble living on a budget or a fixed income, the problem may be one that a reverse mortgage cannot solve.

If your parents keep you in the loop on their financial issues, take the time to sit down with them and their financial advisor to determine the best course of action to keep them happily puttering and wondering why you never call through many years of retirement. A hard look at numbers will help you all determine if a reverse mortgage disadvantages outweigh the potential benefits.



Source: goodfinancialcents.com

Apache is functioning normally

Update 12/12/22: You should see a manual adjustment for the missing More Rewards points. It’ll show as a separate line-item sometime at the end of November. For me it happened on November 25th, others are seeing November 28th.

Update 11/21/22: I was told by BofA Twitter support that everyone will be getting credited within 12 weeks for transactions that were processed on the 5th and are showing a later date. I’m just holding tight and hope it comes through automatically.

Transaction dates are provided to the bank by the merchant; however, this date may differ from when the merchant authorized a charge. As a courtesy, in addition to all charges with a transaction date of Nov. 5 being awarded an incremental <2%, 2 miles or 2 points>, the bank will also award the bonus on purchases that were authorized on Nov. 5 but have a transaction date later than Nov. 5. It may take up to 12 weeks for qualified courtesy adjustments to be applied.

I asked them whether they need my personal info to identify my account and issue the credit. They replied:

This will happen automatically. If after 12 weeks, you do not see the adjustment, please reach out so we can research your account farther. 

Update 11/8/22: Bonus points are reflecting for most purchase. However, BofA apparently messed up for transactions posted near midnight and are not crediting bonus rewards, even for those transactions that clearly reflected as charged in the BofA system before midnight. For me, a transaction a little after 11pm got the bonus, but two transactions in the final 15 minutes of the day did not get rewards, despite both showing the pending transaction already before midnight. Others report that some transactions from earlier in the day are having this issue as well. I’ve reached out to BofA twitter support, we’ll see how those goes.

Update 11/5/22: Ends at 11:59pm Eastern Time (ET) on November 5, 2022


Update 11/4/22: This promo goes live tomorrow. Worth putting some thought into where you can pay out to maximize this deal. You might also want to pay down your BofA cards now to clear up the credit limits.

The Offer

Direct Link to offer

  • Bank of America is offering a one-day rewards holiday on Saturday, November 5, 2022 whereby all personal and business cards from Bank of America will earn an extra 2% cash back / 2x rewards points.

The Fine Print

  • No enrollment necessary.
  • The promotional offer is in effect 12:00am to 11:59pm Eastern Time (ET) on November 5, 2022. Only purchases that appear on your statement with a transaction date of November 5, 2022 will qualify. Transactions with delayed processing of 90 days or more will not be eligible to be included in the promotional offer.
  • This promotional offer applies to all purchases. Certain transactions, such as Cash Advances, Balance Transfers and Wire Transfers, are not considered retail purchases and do not apply for purposes of this offer. This offer will not apply to any customer bonus or account opening bonus.
  • This promotional offer is applicable to all Bank of America Consumer and Small Business credit cards that are open with active charging privileges on November 5, 2022.
  • Please allow up to 12 weeks after the promotional offer ends for the bonus rewards to be added to your account.
  • You may use all your available credit line. Please visit your account details in the Mobile Banking app or Online Banking to see your current available credit.
  • You will earn the Preferred Rewards bonus on the purchase amount(s). The Preferred Rewards bonus does not apply to the incremental bonus earn for this promotion.

  • The value of this reward may constitute taxable income to you. You may be issued an Internal Revenue Service Form 1099 (or other appropriate form) that reflects the value of such reward. Please consult your tax advisor, as neither we, nor our affiliates, provide tax advice.

Our Verdict

Interesting promotion, wow! If you have a card that already earns a competitive rate, this will make it even better. Some examples of where this can be a great deal:

  1. The Travel Rewards, Premium Rewards, and Unlimited Cash Rewards cards earn 1.5% on all purchases. On November 5th you’ll get an extra 2% for 3.5% total everywhere.
    • This is especially interesting for top-tier Preferred Rewards relationship clients who always get 2.62% on all purchases with these cards and will get 4.62% everywhere on November 5th.
  2. Bank of America Customized Cash Rewards card always gets 3% on one category of your choice (or 5.25% for Preferred Rewards clients) and 2% on grocery/wholesale (3.5% for Preferred Rewards clients) on up to $2,500 in purchases. On November 5th it’ll be 2% on top of that. That’s a potential total of 7.25% on your chosen category for top-tier Preferred Rewards clients.
  3. Earn 3x miles per dollar everywhere on the Alaska Airlines card.
  4. Apply for a new Bank of America card now and you’ll hopefully have the card by November 5th when you can meet the minimum spend at increased earn rates.
  5. Let us know what other opportunities interest you

Some tips:

  1. If you want to hit this hard, try getting your credit limit as high as possible in advance of November 5th.
  2. Consider paying taxes with the credit card convenience fee of around 2% on November 5th and you’ll still come out ahead.
  3. Pay out any utility bills, medical bills, insurance premiums, charity donations on November 5th.
  4. Some people might want to manufacture spend, e.g. purchase $500 Visa gift cards, on November 5th.
  5. Let us know your own suggestions in the comments below (we are aware that the comments aren’t working right now for most people).


Source: doctorofcredit.com

Apache is functioning normally

Fannie Mae has rolled out a new version of its automated writing system, known as Desktop Underwriter® (DU®) Version 10.0.

The new version has a number of important changes, two involving consumer credit scores.

Firstly, this release will use trended credit data, which I wrote about back when it was initially announced about a year ago.

This basically allow mortgage lenders to see your balance history on revolving accounts for the past two years, not just the minimum payment and credit limit.

There’s a correlation between carrying a balance and becoming delinquent on the mortgage.

Specifically, borrowers who pay off their credit card debt in full every month are 60% less likely to fall behind on the mortgage versus the borrowers who only make the minimum payment.

That being said, I don’t know how mortgage lenders will view those who revolve their balances. Will they just be further scrutinized, or face some sort of pricing hit that leads to a higher mortgage rate?

I suppose time will tell, but we do know it’s a big deal that it’s being included, with Equifax saying consumers will “see significant update to mortgage decisioning process” after the first tri-merge credit report update in 30 years.

They further note that the inclusion of this new data will “more accurately identify and potentially reward responsible credit behavior,” meaning it could help too.

However, per Fannie Mae, so-called “classic credit scores models” don’t actually use trended data, and these scores can continue to be used by lenders, so at the moment it shouldn’t affect the LLPAs passed onto borrowers.

Eventually, trended credit data may lower/raise credit scores and that can affect your mortgage rate.

Either way, the takeaway is to pay all bills in full each month, not only to save on interest, but to avoid any unwanted attention from your mortgage lender. Also stop swiping months before you apply.

Automated Underwriting for Borrowers with No Credit Scores

Now let’s turn to another key change rolling out with DU 10.0. Fannie will now use automated underwriting (DU) for borrowers who lack the traditional credit necessary to generate a credit score.

Previously, borrowers without credit scores had to have their loan applications manually underwritten, and my assumption is that few lenders made such loans due to the complexity and risk involved.

Beginning with this release, lenders will be able to run the numbers through DU, which should provide both peace of mind and more approvals for borrowers who lack traditional credit.

So if you’re that person who eschews credit, this is great news if you still don’t have several hundred thousand dollars available to purchase a home with cash.

Requirements to Get a Mortgage with No Credit Score

[checklist]

  • Owner-occupied single-unit properties only
  • 10% minimum down payment
  • Max DTI of 40%
  • Max loan amount of $417,000
  • Must provide two lines of nontraditional credit (one must be housing-related)
  • Purchase and rate/term refi only

[/checklist]

If you don’t have any credit scores, lenders will likely be pretty critical of your borrowing profile. Let’s take a look at what Fannie Mae demands in order to get a mortgage without a credit score.

Fannie is the leader in this space so expect most others to follow suit and/or enact similar guidelines.

Most importantly, you must be able to document a “housing-related source of nontraditional credit,” aka rental payments. That must be one of your two nontraditional credit sources. Another might be a cell phone bill or utility payment.

Additionally, you are restricted in what you can purchase. The property must be an owner-occupied, single-unit house or condo, excluding manufactured housing.

Financing is limited to purchases and rate and term refinance transactions – no credit score, no cash out!

The loan amount must be at or below the conforming loan limit of $417,000 (no high balance permitted).

Borrowers must also be able to muster a minimum down payment of 10%. The max CLTV is also 90%, so no getting around that requirement with a second mortgage.

Lastly, your DTI ratio must not exceed 40%, which is a bit lower than the 43% limit for QM loans and the 45-50% allowed under certain circumstances when strong compensating factors are present.

As you can see, it’s not very easy to get a mortgage without a credit score, though Fannie is opening the door a bit more by letting its robot make the decision.

My take is that you’re better off just establishing a traditional credit history. I understand there are individuals who hate credit, but a mortgage is a form of credit, so if you want one, it’s good to have some prior experience…

Source: thetruthaboutmortgage.com

Apache is functioning normally


Should You Become an Authorized User? – MintLife Blog

Skip to main content

establish credit history, consider becoming an authorized user and building your credit in other ways, like getting a secured credit card.

What Is an Authorized User? 

An authorized user is someone who can make purchases on your credit card but isn’t legally obligated to pay the balance. It’s easy to sign someone up as an authorized user online or over the phone with a few pieces of information like their address, name, and birth date. You can order a separate card or have them use your credit card. You can have several authorized users on a single credit card, usually up to five. If the person is under 18, they can still usually be an authorized user on a parent or guardian’s account.

You get some privileges as an authorized user, but not the same ones as the cardholder. You can make purchases, find the available balance, and make payments. You can also report a missing card and dispute a fraudulent charge. Authorized users aren’t able to make changes to the account, though. For instance, they can’t close the account, add another user, or change the address.

Authorized Users and Credit

Becoming an authorized user could improve your credit score, but not always, and typically not in a drastic way. Check to see if the creditor sends authorized users’ activity to the major credit bureaus. Most do, but not all. If you’re trying to build your credit, you want to make sure being an authorized user will count toward your history.

When you’re a user on someone’s account who has a solid history of on-time payments and low credit utilization, it can help your credit. On the flip side, if you’re connected to someone with a lower credit score or a spotty payment history, your credit might suffer. For instance, if the cardholder misses a payment, your score could be affected, because it will also be reported on your history. That’s why it’s important to select someone you trust. Choose someone who you know will pay on time and not let their balance lapse. You can even have an upfront conversation about credit history and payments before being added as an authorized user to their credit card.

Just because you won’t be legally responsible for your charges, you may have a different arrangement with family. For example, Asher is an authorized user on his mom’s credit card. She pays for his groceries and utilities, but he is responsible for discretionary spending like going to the movies. Still, if the authorized user like Asher refuses to pay their portion, the cardholder remains responsible for covering it. If the cardholder doesn’t pay or can’t pay the balance, it could harm you more than help you.

Ways to Build Credit

Besides becoming an authorized user, there are other ways to build your credit. Try a combination of different approaches to build your history and show that you’re a responsible borrower.

  • Try a rent reporting service: Put your monthly payments toward your credit history by signing up for a rent reporting service. Proof of your payments is sent to the major credit bureaus. You’ll have to pay a small fee for the service, but it’s a low-risk way to create a credit history for payments you already make.
  • Apply for a secured credit card: Most credit cards are unsecured but require an established credit history. Secured credit cards allow you to put down collateral, such as a $500 cash deposit, in case you don’t pay your bills. These cards are for those without much credit history because the deposit guarantees payment to the lender if you don’t make payments. In most cases, secured credit cards carry higher fees and interest rates than normal unsecured cards.
  • Have someone cosign on a loan: Whether you’re purchasing a vehicle or need more funds for college, having someone cosign on a loan can help build your credit. Banks and lenders will often give out small loans to those without much credit history, as long as they have a solid cosigner backing them.
  • Choose a student credit card: If you’re in college, build credit with a student card. You may be approved even with no credit history. You might have a lower credit limit, such as $500 or $1,000, but the card allows you to spend on credit and build trust with creditors.

Practicing smart financial habits, like building your credit or having a personal budget, reaps rewards both now and in the future. Being an authorized user is one practical way to go about improving your overall financial health when done correctly. With a higher credit score and stronger finances, you can achieve bigger goals, like buying a home or saving for early retirement.

  • Previous Post
    How Does Cash Back Work?

  • Next Post
    What Is a Signature Loan?

Browse Related Articles


Browse by Topic

Source: mint.intuit.com

Apache is functioning normally

Be sure to understand the key differences between these types of cards before you get started in the points and miles world.