Lmao. Don’t hold your breath. And did u read the article or even the financials?

So, catch all is 2x for 30/30 days per month rather than 2x categories 1day per month?

@@verafiedairman yes so the card will have 3x on dining, 2x on travel, 2x on other purchases. No more rent day stuff. If they add another 3x on the grocery store and change the travel to 4x then it'll be even better. They have to turn bilt into a daily card instead of rent day card

@@mukeedcoforstuff I see what you’re saying, it’s a 2x, catch all, card. Plus 3x dining. The whole premise is BILT on paying rent, so in other solutions would be to reduce to 1x for all purchases with the incentive to use for rent w/o fees. Giving 2x could be more costly. They 2x categories for only one day to incentivize you to use, doesn’t mean you will. I would be taking more advantage if we had 2x. I would get more value, and I mostly miss the rent day double points if it doesn’t land on the weekend. In reality, Wells Fargo just added this new rewards program a few years ago. I don’t know their books, where the losses are stemming from. Their strategy seems to be adding new line up of cards to acquire new customers, which reasonably comes at a cost. They have till 2029 to become profitable. I’m sure they’ll figure it out.

Yeah, I'm not sure what happened there but it recorded that way and I couldn't go back and make zoom unfreeze it, so I had to run with it. The audio thankfully didn't freeze. -Nick

The vast majority of points are likely redeemed for rent an Amazon purchases (same as most Amex points are likely redeemed for Amazon, etc), and those are (I believe) at 0.6cpp, so Bilt is coming out ahead when people redeem in those ways. There is no way to get 1cpp except by transferring to partners and I am not aware of any transferable currency where the majority of points used are transferred to partners. Those of us who learn how to use points well are in the minority of any system -- if we were in the majority, the economics wouldn't work for any bank. So the point we were making there is that Bilt is getting 0.8% from Wells even on rent payments and then when people use points toward rent (which, as we said in the show, is a poor use of points but nonetheless a common one), Bilt is coming out ahead. -Nick

@@frequent-miler you can also redeem for travel at 1.25 cpp, and for house down payment at 1.5cpp

@@frequent-milerI dont doubt that is the case, but out of curiosity where can such info be found?

Did you listen to the episode? I wouldn't say that Wells Fargo "screwed up" here. I think some of the forecasts don't make much sense, but at the same time as I said on the show this seems like a pretty reasonable cost to offer what they are offering (and certainly a far lower cost than other banks incur for new cardmember acquisition). -Nick

@@frequent-miler Nick, they did screw up per the article. They used historical models for average cardholders carrying balances. They didn't consider that people would only use this card for rent and use other cards for regular spend, and the target market is younger.

@@frequent-miler tbf u would not be happy if forecasts are wildly off and no 1 can show u where/how the $10M/mo loss is actually cash profit (elsewhere). Pretty much the definition of “screwup”