Helping Homebuyers Achieve Their Dreams: An Overview of the Rocket and Bilt Cards
For prospective homebuyers, saving for a down payment and closing costs is a significant challenge. Two credit cards, the Rocket Visa Signature® Card and the Bilt Mastercard®, aim to make this process easier by offering rewards tailored to homebuyers. The Rocket Visa Signature® Card provides 5% cash back on all purchases, but only if you use the rewards toward closing costs or a down payment through Rocket Mortgage. Similarly, the Bilt Mastercard® offers 1 Bilt Point per $2 spent on a new home when purchased through eXp Realty, which can be redeemed for travel or applied to a down payment.
Rocket Visa Signature® Card: A Closer Look
The Rocket Visa Signature® Card is designed specifically for those planning to use Rocket Mortgage for their home loan. It offers an impressive 5% cash back on all purchases, with no rotating categories to keep track of. However, the rewards are most valuable when used for mortgage-related expenses. For example, redeeming points toward closing costs or a down payment gives each point a value of 1 cent, with a maximum redemption of $8,000 (800,000 Rocket Points) per loan. While this card has no annual fee for Rocket Mortgage clients and offers a $200 introductory bonus, its limitations include the need to use Rocket Mortgage to unlock the best value for your points.
Bilt Mastercard®: Tailored for Homebuyers and Renters
The Bilt Mastercard® stands out as a versatile option for both renters and homebuyers. It allows renters to earn points on rent payments without transaction fees, which can later be applied to a down payment. For homebuyers, the card offers 1 Bilt Point per $2 spent on a home purchased through eXp Realty. Points can be redeemed for travel, statement credits, or toward a down payment, with no cap on earnings. While the card is excellent for renters, non-renters may find better rewards elsewhere. Additionally, the card requires at least five transactions per statement period to earn points.
What Every Homebuyer Should Consider Beyond Rewards
While the Rocket and Bilt cards offer attractive rewards, the most critical factors in homebuying are finding the right home and securing a favorable mortgage. The savings from these cards, such as $8,000 or 200,000 points, are relatively small compared to the overall cost of a home. Prioritizing a trustworthy lender and a compatible real estate agent is far more impactful than chasing rewards. Additionally, building a strong credit score is essential for securing the best mortgage rates, and using a credit card responsibly can help achieve this.
The Role of Cash-Back Credit Cards in Homebuying
Standard cash-back credit cards may seem less exciting compared to the Rocket and Bilt cards, but they offer flexibility and simplicity. Many cash-back cards provide up to 5% on common expenses and often come with no annual fees, making them a practical choice for saving money while preparing to buy a home. They also help build credit history, which is crucial for securing a mortgage. However, most lenders do not allow credit cards to be used for mortgage payments, though fintech companies like Plastiq offer workarounds for a fee.
Final Thoughts: Choosing the Right Tool for Your Homebuying Journey
Both the Rocket Visa Signature® Card and the Bilt Mastercard® are valuable tools for homebuyers, but they are not one-size-fits-all solutions. The Rocket card is ideal for those committed to using Rocket Mortgage, while the Bilt card is better for renters or those who want flexibility in redeeming points. For others, a standard cash-back credit card may be the most practical choice. Ultimately, the key to achieving homeownership is careful financial planning, responsible credit use, and a focus on the bigger picture beyond rewards.
