According to its website, the X1 card is both “the first smart credit card” and “the smartest credit card ever.” While it’s hard to say how smart this credit card is, it certainly isn’t like any other card.
The X1 Card, slated for release in winter 2020, will temporarily increase your rewards each time you refer another cardholder. It uses your income to determine your credit limit and says its limits will be up to five times higher than traditional credit cards. To top it off, it has some special features that make it much easier to cancel subscriptions and free trials.
The X1 card has several interesting features that could make it worth registering on the waiting list. But it also makes sense to be skeptical about whether the card will live up to the hype.
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Main characteristics of the X1 card
The X1 card will not charge an annual fee. Its reward rate depends on several factors. This is how it works:
- The X1 card entitles you to a base rate of 2 points for $ 1 of purchases.
- When you spend at least $ 15,000 a year, you earn 3 points for every $ 1 on your purchases that year.
- Every time you invite someone who gets the card, your card earns 4 points for every $ 1 spent for 30 days. For example, if you invite eight new cardholders, you will earn 4 points for $ 1 for eight months.
You can redeem points for purchases from a variety of brands including Apple, Airbnb, Delta Air Lines, Etsy, and many more. At most merchants, points are worth $ 0.01 each, but some will offer up to $ 0.02 per point. This means that you will earn between 2% and 8% for $ 1 with the X1 card, a rate comparable to that of the best credit cards. However, you will also be limited to redeeming points with partner merchants of the card issuer.
Unsubscribing from subscription services is much easier with the X1 card. It offers one-click cancellations through its app. For free trials, you can create a virtual card number that expires before the end of the trial period. This virtual card number will work to activate the trial offer, but the merchant will not be able to charge for it. However, you will need to update the payment information if you decide to continue using the service after the free trial.
The main area of concern with the X1 card is the redemption of points. If the dots only work with certain brands, it could possibly cause problems. You are limited to the partner brands of the X1 card, and its partners may change over time. It may mean that the card issuer is adding more merchants that you like, but it is also possible that they may lose some of your favorites.
The reward rate on the X1 card is excellent. But earning a lot of points only matters when you can redeem them easily. If you want a more secure rewards option, a cash back credit card would be a better solution.
It is also unclear whether these higher credit limits will be higher for everyone. Your credit limit with this card is based on your income, not your credit score. This could help consumers with fair bad credit and high earners get approved for higher credit limits. But it stands to reason that consumers with great credit and lower wages might also get less credit than they are used to.
How to register on the waiting list
To register on the waiting list for this card, visit Map X1 site and click on “Join the waiting list”. Fill out the form with your name, email address and a bonus code if you have one.
When you register, you will be able to see your current position on the list. You can also progress by adding where you attended college and your most recent employer, and inviting other people who sign up for the card.
Is the X1 card right for you?
Like most credit cards offered by technology companies, the X1 card is not as revolutionary as it is claimed.
When it comes to rewards credit cards, this card probably won’t be the best choice. It has a great rewards rate, but it looks like the redemption options will be limited.
That doesn’t make it a bad card, though. The fact that it bases your credit limit on your income might work well if you don’t have the best credit score. Its one-click cancellation and virtual card number features are ideal if you often find yourself spending too much money on subscription services.
It’s not out yet, but so far the X1 card looks like a solid credit card option for consumers who don’t have good credit.