The X1 Card* is a singular new bank card that gives progressive options in safety, rewards and credit-building options. You possibly can’t join it instantly — I needed to spend six months on the waitlist to get my invite — however the wait will repay when you get permitted. 

The applying itself weighs your earnings extra closely than your credit score rating, giving these with excessive incomes and less-than-stellar credit score an opportunity to get permitted. The X1 Card claims to surrender to “5x the typical credit score line” of different issuers, which may in flip assist increase your credit score rating. I used to be not dissatisfied after I was granted an unexpectedly excessive credit score restrict.

This steel bank card runs strictly from a cell app, the place you may generate a lot of totally different digital bank card varieties to maintain your private data protected when purchasing on-line. There are a whole lot of methods to earn rewards boosts, and you may earn as much as 4% again on your entire purchases when you strategize effectively. Put merely, the X1 Card is elevating the bar for bank cards.

On this article

• How one can get the X1 Card
• ​Get permitted primarily based in your earnings​
• X1’s massive credit score strains​
• Rewards program​
• Referral program​
• Distinctive digital playing cards​
• Insurance coverage and protections​
• FAQs​
• Our method to bank card analysis​

How one can get the X1 card

Functions usually are not absolutely open but. You possibly can request an invitation and await an software e-mail, which might take weeks to months relying on the movement of the restricted rollout. When you get the e-mail, you could have 21 days to finish the applying earlier than X1 provides your spot on the ready record to another person. Should you get a referral from a present cardholder, you may skip the waitlist.

Listed below are six the reason why you might need to be part of the X1’s waitlist.

1. You will get permitted even with a decrease credit score rating

The X1 Card has the potential to assist cardholders increase their credit score rating, largely as a result of approval is predicated extra on earnings than on credit score. Whereas the applying does require a credit score pull, a tough credit score test was solely performed after I used to be permitted, although it did request my Social Safety quantity to do a comfortable pull (which does not have an effect on your credit score rating) earlier than approval. I used to be permitted for the X1 based on my earnings. 

To confirm your earnings, X1 asks you to log into your checking account the place your paychecks are deposited by way of Plaid, a safe monetary information connection service. In case you have two-factor authentication turned on along with your on-line checking account, you will have to quickly disable that function for Plaid to work, relying on the financial institution. 

2. The X1 provides a big credit score line

X1 informed CNET in December that it grants credit score strains as much as 5 instances as massive as these provided by conventional issuers — the typical credit score line granted to profitable X1 candidates was $24,300. I used to be a bit skeptical about this “large credit score line” promise, however X1 adopted by means of, granting me a credit score line practically thrice what most bank cards usually supply me.

You may be asking why an enormous credit score line even issues, particularly since we suggest paying off bank card balances in full every month. The reply is {that a} bigger credit score line can increase your creditworthiness. So long as you preserve low balances, the extra whole credit score out there to you’ll decrease your credit score utilization ratio. Your credit score utilization refers to how a lot credit score you could have entry to versus the debt (or balances) you maintain — and the decrease your credit score utilization, usually the upper your credit score rating.

For instance, when you have entry to $20,000 in credit score and have mixed balances totaling $4,000, your credit score utilization could be 20% ($4,000 divided by $20,000). Whenever you achieve entry to a better credit score restrict, for example, one other $20,000, your credit score utilization drops even decrease. For instance, gaining access to $40,000 in credit score and carrying that whole stability of $4,000 would provide you with a decrease credit score utilization of 10%, which is nice information on your credit score rating.

3. The X1’s rewards program will get higher the extra you spend

The first cause I signed up for the X1 was its strong, flat rewards construction. You earn 2x factors on all of your purchases — factors are price 1 cent every — and when you spend $15,000 in a yr, your entire spending will get upgraded to incomes 3x factors. Incomes three factors on all purchases is the pillar of high rewards charges, and only a few playing cards supply it. And, the playing cards that do supply 3% again in rewards on all purchases usually require a a lot increased spending threshold to unlock these rewards. 

The cardboard’s app additionally neatly splits up the $15,000 threshold into an estimated weekly spend in an effort to observe your progress towards higher rewards.

The draw back: Redeeming rewards as money again lessens their worth

When you have the chance to earn a better rewards fee than most playing cards, the X1 could solely make sense when you can make the most of its redemption partnerships. Rewards may be redeemed as a press release credit score in opposition to your purchases at greater than 40 manufacturers — together with Amazon, Costco, House Depot, Ikea, Airbnb, a number of airways, Apple and extra — at a price of 1 cent per level. 

Nevertheless, when you select to redeem for money again, you will get 0.7 cents per level. This technique is just like American Specific rewards playing cards, however the X1’s 1 cent redemption manufacturers cowl a wider scope of purchases.

So, when you’re a constant Amazon or Costco shopper, frequent flyer or can in any other case make the most of the redemption companions, this is probably not a problem. However when you’re hoping to earn rewards as money again and can spend lower than $15,000 in a yr, you may need to flip to different playing cards. Alternatively, when you’re prone to hit the $15,000 threshold, even the extra restricted cash-back choice will yield you 2.1% again in your purchases — nonetheless a high flat rewards fee.

You possibly can earn further factors — as much as 10x factors — on the “Store” tab of the app as effectively. There are about 50 manufacturers the place you may earn additional factors, together with at Apple, Macy’s, Nike, Sephora, H&M, House Depot, Lowe’s, The North Face and Walmart. You may have to buy by means of the X1 app to have these rewards utilized, nonetheless. Any such function is turning into extra frequent with newer bank card corporations.

4. The referral bonus is not taxable, like most others

Just some bank cards supply a referral bonus, and X1 is one among them. You possibly can invite as much as three pals, and in the event that they get the cardboard, you each earn 30 days of 4x factors on your entire purchases. This may be extra worthwhile than the standard $100 vary for referral bonuses, relying on how a lot you spend in a month. 

There’s one thing else that is particular about this referral bonus. Whereas most bank card referral bonuses are taxable, as a result of this one comes within the type of the potential to earn extra factors relatively than a money payout, you will not owe taxes on these referral bonuses. That is as a result of the IRS considers factors a “rebate” relatively than earnings. 

5. The digital card functionality is unmatched

The X1 app permits you to generate quite a lot of totally different digital bank card varieties, demonstrating higher know-how than most bank cards supply. Digital playing cards are one-time use card numbers meant to maintain your actual data safe. However X1 takes the digital card idea a step (or two) additional and expands it.

You possibly can make use of X1 digital playing cards for quite a lot of causes. A number of digital playing cards can be utilized without delay, and you may cancel particular person ones at any time. Or you may simply begin off with a digital card set to auto-cancel after one use or after 24 hours. The digital playing cards can be utilized to enroll at no cost trials, so you aren’t getting charged when a subscription trial ends and also you overlook to cancel it forward of time. You too can give a digital card quantity to others — like a babysitter or member of the family — for short-term use, and may cancel it at your discretion. 

You possibly can even make separate digital playing cards to handle your computerized funds from the app at your discretion. For instance, when you wanted to cancel an auto fee since you had been a bit brief that month, you might do all of it from the X1 app as a substitute of logging in to separate accounts for every payee. 

6. Insurance coverage and different protections

Some bank cards supply one or two varieties of courtesy protections, usually centered on an space like journey. However the X1 provides one of many broadest mixtures of protections. 

First, it covers your eligible purchases from harm or theft for 90 days by way of “buy safety,” which can reimburse you as much as $1,000 for affected purchases, for as much as $10,000 per cardholder. The X1 card may even add an extra yr to any eligible warranties on objects you purchase with the cardboard (together with purchases made with digital playing cards).

Cellphone safety is a uncommon however helpful providing, too: Should you pay your cell phone invoice along with your X1 card, your telephone is roofed for harm or theft within the following month (with a $50 deductible).

It is also uncommon for a nontravel card to supply journey interruption or cancellation insurance coverage, in addition to an auto rental collision harm waiver, however these perks will help forestall losses from surprising adjustments to nonrefundable journeys and prevent cash on the automotive rental counter.

FAQs

Our methodology

CNET evaluations bank cards by exhaustively evaluating them throughout set standards developed for every main class, together with cash-back, welcome bonus, journey rewards and stability switch. We take into accounts the standard spending habits of a spread of client profiles — with the understanding that everybody’s monetary state of affairs is totally different — and the designated operate of a card. 

*All details about the X1 Card has been collected independently by CNET and has not been reviewed by the issuer.

The editorial content material on this web page is predicated solely on goal, unbiased assessments by our writers and isn’t influenced by promoting or partnerships. It has not been supplied or commissioned by any third occasion. Nevertheless, we could obtain compensation while you click on on hyperlinks to services or products provided by our companions.

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