X1 Card Review
Update 1/14/21: X1 has announced a $12 million investment led by Spark Capital with participation from Jared Leto, Box CEO Aaron Levie, Yelp CEO Jeremy Stoppelman, Affirm CEO and PayPal co-founder Max Levchin and Y Combinator Continuity CEO Ali Rowghani. The funding follows X1 Card‘s viral growth since opening up its waitlist in September. The waitlist is already nearing 300,000 signups and is on its way to becoming the largest ever waitlist for a fintech product.
Original article, Sept. 17, 2020:
The X1 Card is a new re-imagined credit card product for a new generation. The card is not available yet, but it has opened up a wait list. This is similar to some other new products that we have seen recently, where you move up the list by referring others. But in this case, you can also earn 4X on purchases thanks to your referrals. The card promises smart technology, an unparalleled rewards program, higher limits, lower interest rates. All of that, for no annual fee. It gets better as the the card only requires a soft pull. It is aimed at the younger generation, and are expected to start rolling out later this year. Anyone in the United States can join the wait-list. And now let’s get into this X1 Card review and see all the features this card offers.
The X1 Card earns points for every single purchase. Rewards vary from 2x to 4X for every dollar spent. Here’s the reward structure for the X1 card:
- Earn 2X on all purchases
- Earn 3X on all purchases for the year if you spend $15,000 on the card annually
- Invite friends and earn 4X on all purchases for a month for every friend you refer.
- No limit to how much you can earn and points never expire.
When it comes to redeeming rewards, you have to use them for purchases at select merchants. Over 100 popular merchants are included, but that still doesn’t make them as good as cash. The value is 1 cent per reward point. The list of merchants includes Alaska Airlines, Apple, Airbnb, Asos, Casper, Crate & Barrel, Delta Air Lines, jetBlue, Nike, Patagonia, REI, Sephora, Supreme, Wayfair and more. You can even use points for part of your purchase, no need to wait until you have enough to redeem.
- Earn 4X rewards on all purchases for 30 days when you sign up with a referral link.
No Hard Pull
The X1 card looks at current and future income instead of credit score. It sets a smart credit limits advertised to be up to five times higher than traditional credit cards. The card also offers automatic credit line increases as cardholders advance in their careers. Having a higher credit limit also improves cardholder’s credit utilization ratio, which increases their credit score.
TechCrunch notes that X1 Card is built by Thrive, the company behind ThriveCash, a loan platform that lets you get a credit line based on offer letters for an upcoming summer internship or your first full-time job after college. You can then borrow as much as 25% of your total internship salary or 25% of your first three paychecks if it’s a full-time job. X1 should use a similar system, although it is not clear how the credit limit will be decided exactly. Also we’ll have to wait and see what information and documents might be required during the application process.
- No annual fee, no late fees or foreign transaction fees.
- APR ranges from 12.9% to 19.9%.
- Balance transfer fee of 2%.
- Create virtual cards for one-time use
- Cancel subscription payments in one click
- Spend anonymously without disclosing your personal information
- Get instant notifications on refunds
- Attach receipts to purchases
Besides all these features and the earning structure, the X1 Card also stands out with its design. The card is made with 17 grams of sleek, stainless steel, giving it a very modern look. The X! card has a clean front, with just the X1 logo aligned vertically and the ‘Visa Signature’ logo on the lower right corner. Metal cards are generally associated with high-end credit card products, and the X1 card gives you that look and feel. You can see more images, and even hear the sound of the card dropping on the floor here.
This is a very promising product. The X1 card has no annual fee, there’s no hard pull, a few cool features, awesome design and up to 4X earning. That actually sounds too good to be true, so let’s see if it actually comes to market. And even if it does, we’ll have to see if they can keep up the current earning structure in the long term. Let me know what you think.