How many times a day does a consumer pull out their credit card to pay for gas, groceries, or to buy themselves a sweet treat on their way home?
Mortgage lenders hope that putting their company names on credit cards consumers use daily will keep their brands top of mind — and lead to repeat business.
Rocket Companies and Mesa, a homeownership membership platform that allows lenders to co-brand a credit card, are among a handful of companies offering financial products with homeowner perks.
Rocket rolled out a Visa credit card in 2024 with the goal of making the firm "a trusted financial partner at every step- not just during the mortgage process," said Kirsten Klotz, Vice President of Rocket Card, in a statement.
The megalender's card offers a number of incentives including 5% back on up to $8,000 on all purchases, which can go towards the cost of a new home with Rocket Mortgage, Klotz said.
According to the megalender, the amount can go towards offsetting closing costs or reducing the interest rate of a loan. Rocket estimates that all-in-all using its credit card can save its borrowers close to $35,000 over the life of a loan.
Klotz claims that there has been an uptick in demand for the credit card among consumers looking to buy a home in the near term "as they seek ways to lower upfront costs and decrease their interest rate."
Mesa followed suit last November, launching a homeowner-focused credit card that CEO and co-founder Kelley Halpin calls "the first premium credit card built for the modern homeowner."
"It rewards you every day when you spend on gas, groceries, home-related expenses and improvements, utilities, daycare, and even your mortgage payment," Halpin said. "We offer one point per dollar on your mortgage payment, one point on all other card spending, and elevated rewards in certain everyday categories — like 2x points on gas, groceries, and EV charging, and 3x points on what we call home-related spending."
The points earned can either be cashed out, used for travel or towards a mortgage payment itself. Consumers who want to earn points via making their mortgage payment will have to upload proof that they are making them, Halpin said.
Mesa is also opening up opportunities for mortgage lenders to co-brand with it. Paramount Residential Mortgage Group is one of the first IMBs to jump on board, announcing the launch of its
Kevin Peranio, chief lending officer at PRMG, called the Mesa credit card "the Rocket card for the rest of the industry."
"What are you going to do? You need to compete somehow, and this is something the rest of the industry can have," he said.
The PRMG executive said mortgage lenders and servicers are always looking for ways to stay connected with consumers and remain visible when a borrower needs a mortgage product.
"You can earn rewards on your mortgage payment, that's a no brainer," Peranio said. "I don't know why everyone isn't doing this. I hope at some point everyone is."
