Bilt Makes Credit Card Upgrades and Downgrades Possible

Bilt Rewards has added some new terms regarding upgrades and downgrades among its credit cards. The changes come as Bilt’s revamped credit card program approaches its 1-year anniversary.

However, the new terms are somewhat convoluted — particularly those regarding prior welcome offer bonuses earned on a Bilt credit card and how this relates to a downgrade decision.

Here’s everything we know so far.

Bilt Updates Card Upgrade and Downgrade Rules

Earlier this year, Bilt launched its new Bilt 2.0 concept. With this came a credit card overhaul, introducing 3 new Bilt credit cards — the Bilt Blue Card (rates & fees), the Bilt Obsidian Card (rates & fees), and the Bilt Palladium Card (rates & fees) — all with different annual fees, reward structures, and benefits. The program also introduced Bilt’s parallel second currency, Bilt Cash, with up to $100 of earned Bilt Cash rolling over to the next year (offer terms).

At the time, there was no indication whether cardholders could change credit cards if the one they held was no longer as useful — until now.

Bilt has now updated its terms, allowing eligible Bilt cardholders to upgrade or downgrade their Bilt card. Now, product upgrades are in Beta to select cardholders and are rolling out in phases. 

If you currently have a Blue Card, you may be eligible for an upgrade to the Obsidian Card or the Palladium Card. If you currently have the Obsidian Card, you may be eligible for an upgrade to the Palladium Card. Best of all, the terms also mention that some cardholders may be eligible for a targeted upgrade bonus.

If you’re looking to upgrade your Bilt card and there’s no upgrade offer available, it means you’re not eligible to upgrade right now.

However, things are a bit more concerning for Bilt cardholders looking to downgrade to a lower-tier Bilt credit card.

According to Bilt’s updated terms, cardholders who downgrade a card within 30 days after the prior Bilt card’s annual fee posts will have the Bilt Cash earned as part of the prior product’s welcome bonus reversed, and the new product’s bonus will be issued in its place, which could result in a negative Bilt Cash or point balance. However, any elite status you earned on your own, beyond the welcome offer bonus, will remain the same.

These new terms are somewhat open to interpretation. Bilt has not clarified whether these welcome bonus clawbacks only apply to the renewal annual fee or to the first annual fee as well.

If a welcome bonus earned a year prior can be clawed back for those looking to downgrade a card, that is very bad news and sets a dangerous precedent.

What This Means for Cardholders

For cardholders, the new terms provide more flexibility, which is always a good thing. However, they also make the timing of a product change increasingly important.

A Bilt cardholder considering a downgrade after an annual fee posts may need to think carefully about losing the previous card’s welcome bonus and whether they have used its valuable benefits.

Final Thoughts

Bilt has updated its terms, stating that eligible Bilt cardholders may upgrade their cards if they choose. Product upgrades are currently in beta, with the rollout expected to take some time before becoming available to everyone.

Cardholders looking to upgrade a Bilt credit card may also be eligible for an upgraded offer, but it seems targeted.

On the other hand, those looking to downgrade a Bilt card may be at risk for losing their original welcome bonus.