Wells Fargo Loses $10M Monthly on $3.5B Bilt Credit Card Program

Jun 16, 2024, 03:24 PM

Wells Fargo is facing significant financial losses due to its co-branded credit card program with Bilt. The Bilt credit card, which offers rewards points for rent payments, has resulted in Wells Fargo losing $10 million per month. The bank had anticipated that renters would use the card for other purchases, generating additional revenue, but instead, users are primarily leveraging the rent points and paying off balances to avoid interest charges. This miscalculation has led Wells Fargo to renegotiate its deal with Bilt. The program was initially valued at $3.5 billion, despite its economically unviable contract. The Bilt credit card was also noted for its $3.1 billion valuation, and Wells Fargo is the third largest US bank.