Bilt, the company behind the popular rewards-for-rent credit card, is facing issues after some cardholders received mistaken collections notices for phantom balances. These erroneous notices led to a negative impact on their credit scores.

A Bilt spokesman confirmed that approximately 1,850 cardholders were affected by this error. The company stated it acted swiftly to rectify the situation. The issue stemmed from a reporting error made by a third-party collections agency concerning a small segment of customers enrolled in Bilt's original beta program.

This problem specifically impacted individuals who held an earlier iteration of the Bilt card. The company had ceased accepting new customers for this original version of the card in 2022, indicating the affected group is a distinct subset of their user base. Bilt is working to resolve these mistaken credit reports and mitigate the damage to cardholders' credit.