There are many reasons why you might have a good or a bad credit score. However, if you are just entering the job market, you may get a steady income and a low limit on your credit card. The X1 Card aims to solve this problem by setting limits based on your current and future income instead of your credit rating.
According to the company, some customers can expect limits that are up to five times higher than a traditional credit card. And that limit can increase if, for example, you get a promotion at your workplace.
“The consumer credit card industry has been virtually untouched by technology and has relied on the archaic credit scoring system. Max [Levchin]David [Sacks] and I have similar results ̵
Depending on your creditworthiness, you will receive a variable annual interest rate of 12.9 to 19.9% and a remaining transfer fee of 2%. There is no annual subscription fee and the X1 Card does not change any fee for late or foreign transactions.
Behind the scenes, the X1 Card was developed by Thrive, the company that developed ThriveCash, a credit platform that allows you to obtain a line of credit based on letters of offer for an upcoming summer internship or your first full-time job after college.
You can then borrow up to 25% of your total internship salary, or 25% of your first three paychecks if it’s a full-time job. There are some fees, but it can be helpful when you’re signing a new lease and, for example, don’t have any money in your bank account.
Thrive raised $ 10.25 million from PayPal and Affirm founder Max Levchin, former COO of Twitter, Adam Bain, general partner of Craft Ventures, David Sacks, and others. Read TechCrunch’s Natasha Mascarenhas article on ThriveCash if you are interested in learning more about this product.
The X1 card is a stainless steel Visa card that works with Apple Pay and Google Pay. It helps you keep track of your subscriptions in a number of ways. First of all, you can cancel your subscription payments through the app. If you’re trying a new service and you’re asked to enter your credit card information to start a free trial, you can also generate an auto-expiring virtual credit card.
When you receive a refund, the X1 Card will notify you. You can also add receipts to your transaction in the app.
When it comes to rewards, the X1 Card uses points. You will receive 2x points for all purchases by default – there are no categories or retailers giving you special rewards. If you spend more than $ 15,000 on the card in a year, you will earn 3X points. If you refer a friend, you get 4X points for your purchases for one month – each new referral adds an additional month of 4X points. Points can be redeemed at trading partners such as Apple, Airbnb, Delta, Everlane, etc.
In other words, it’s a credit card. However, what makes this product more interesting than your average chase card is that it tries to disrupt the credit score system. It will be interesting to see if people can really reach higher limits with this system.