Official announcements from Wells Fargo, Bilt, or major financial news outlets

Wells Fargo Renegotiates Bilt Credit Card Deal Amid $10M Monthly Losses, $3.5B Valuation

Jun 16, 2024, 02:39 PM

Wells Fargo is renegotiating its credit-card deal with Bilt after incorrectly forecasting key revenue drivers. The co-branded program, which most big banks passed on, has resulted in Wells Fargo losing $10 million a month with no path to profitability. Bilt, which raised money at a $3.5 billion valuation and has a $3.1 billion valuation for its credit card, offers a credit card that gives rewards points for rent payments. However, renters are primarily using the card for rent payments and paying off balances to avoid interest, leading to significant financial losses for Wells Fargo. The agreement, which runs through 2029, has been economically unviable, prompting the bank to reconsider its terms.