Tuesday, October 11, 2022
HomePersonal FinanceX1 Credit score Card Evaluate - Key Options, Bonuses, Professionals & Cons

X1 Credit score Card Evaluate – Key Options, Bonuses, Professionals & Cons

New bank cards come and go on a regular basis, but it surely’s uncommon to return throughout a card that makes you sit up and take discover.

The X1 Credit score Card is a type of uncommon playing cards. Not as a result of it’s one of the best bank card ever created, however as a result of it pushes the envelope and does issues few (if any) different playing cards do. Like setting credit score limits primarily based on each present and anticipated future earnings, making it super-easy to create and use protected digital playing cards, and providing secondary playing cards with no age restrict in order that your youngsters can responsibly construct credit score from an early age.

As a result of the X1 Credit score Card is slightly outdoors the field, you’ll wish to perceive what units it aside — and what doesn’t — earlier than you apply. Right here’s what you’ll want to know.

What Is the X1 Credit score Card?

The X1 Credit score Card is a rewards bank card with no annual payment. Eligible common purchases earn 2 factors per $1 spent, with no caps on how a lot you possibly can earn. Should you spend at the least $15,000 per 12 months, you possibly can earn 3 factors per $1 spent on eligible common purchases as much as the primary $7,500 in month-to-month purchases.

The X1 Credit score Card has a strong cell app that gives straightforward transaction search, real-time transaction notifications, digital card era, and a easy transaction dispute characteristic. It additionally has an progressive strategy to underwriting that considers each your present and future anticipated earnings, probably leading to a better credit score restrict than you’d get with a extra conventional bank card.

The X1 Credit score Card requires good credit score or higher, so it’s not best for those who’re nonetheless establishing or rebuilding your credit score. Its rewards factors additionally don’t have one of the best redemption worth — they’re value as little as $0.007 when redeemed for money. Your whole return on spending might subsequently be decrease with this card than with a journey bank card whose factors or miles are value $0.02 or extra at redemption.

How the X1 Credit score Card Stacks Up

The X1 Credit score Card shouldn’t be your typical bank card, which makes apples-to-apples comparisons tough. 

Nonetheless, it has clear strengths and weaknesses which are straightforward sufficient to match in opposition to different choices. See the way it stacks up in opposition to a extra conventional rewards bank card: the Chase Freedom Limitless Credit score Card.

X1 Credit score Card Chase Freedom Limitless Credit score Card
Credit score Restrict Probably very excessive — primarily based on present and future earnings, with dynamic will increase over time Typical for cash-back bank cards — primarily based on earnings, credit score rating, and different elements
Credit score Required Good to wonderful Good to wonderful
Rewards 2x base factors on eligible purchases; 3x factors for all the 12 months for those who spend at the least $15,000 for the 12 months; alternatives to earn extra with Boosts As much as 5% money again on Chase Journey purchases and three% again on drugstore and restaurant purchases; 1.5% again on all the pieces else
Level Worth at Redemption $0.007 when redeemed for money; as much as $0.01 when redeemed with companions $0.01 when redeemed for money
Annual Payment $0 $0
Digital Playing cards Sure, one sort free of charge trials and one for one-time purchases Not provided by Chase

What Units the X1 Credit score Card Aside?

The X1 Credit score Card shouldn’t be a typical bank card, so there’s loads that units it aside. These are the three most notable issues X1 does higher — or at the least in a different way — than the remainder.

  • Excessive, Dynamic Credit score Limits Primarily based on Present and Future Revenue. X1 advertises credit score limits as much as 5 occasions increased than conventional bank cards. The key: X1 makes use of each present and anticipated future earnings to set your credit score restrict, reasonably than simply present earnings.
  • Totally different Varieties of Digital Playing cards. X1 provides two several types of digital bank cards, one free of charge trials and one for one-time purchases. The free trial card expires after 24 hours; the one-time buy card can solely be used as soon as, interval.
  • Highly effective, Straightforward-to-Use App. The X1 app ups the sport for cell bank card apps. Advantages embody a super-simple transaction search characteristic, transaction disputes in just some faucets, and real-time transaction notifications (clutch in case you have a number of approved customers).

Key Options of the X1 Credit score Card

The X1 Credit score Card has some acquainted options, equivalent to a rewards program that earns factors on each buy. It additionally has some less-common attributes, equivalent to a dynamic credit score restrict and a number of varieties of digital playing cards. See what you’ll get for those who’re permitted.

Dynamic Credit score Restrict That Could Be Increased Than Different Playing cards

The X1 Credit score Card considers your present and future earnings when setting your credit score restrict, along with your credit score rating, debt-to-income ratio, and different elements that have an effect on your threat as a borrower.

Utilizing your future earnings along with your present earnings can lead to a better credit score restrict — as much as 5 occasions what a standard bank card would possibly give you, in line with X1. 

That is good for those who often make huge purchases and don’t wish to throw your credit score utilization out of whack. Simply keep in mind that the X1 card doesn’t have a 0% curiosity promotion, so you’ll want to repay your fees in full by the due date to keep away from curiosity fees.

Incomes Rewards Factors

The X1 Credit score Card’s baseline rewards fee is 2 factors per $1 spent (2x factors) on all eligible purchases. 

Should you spend at the least $15,000 in a calendar 12 months, you’ll earn 3 factors per $1 spent (3x factors) on all eligible purchases for the 12 months, no matter if you cross the $15,000 spend threshold. X1 caps the 3x tier at $7,500 in month-to-month purchases, so your earn fee drops again to 2x in any month you exceed that stage of spend.

X1 provides one other strategy to enhance your level earnings: Boosts. These are limited-time provides to earn further factors with choose companions, equivalent to Amazon and Uber. The Increase fee is usually 5x, or 5 factors per $1 spent, however can differ by supply.

Redeeming Rewards Factors

You’ll be able to redeem your factors in two methods: by requesting a cash-back assertion credit score or by redeeming factors with taking part X1 accomplice retailers.

Redeeming for assertion credit is simpler and extra versatile, however not as rewarding. Every level is value $0.007 when redeemed this manner, decrease than the $0.01 worth that the majority different bank cards supply and that X1 provides if you redeem with accomplice retailers. So that is solely a great choice for those who can’t wait to make a purchase order with an X1 accomplice.

And X1 has loads of companions, so it shouldn’t be an excessive amount of of a stretch to redeem with them. Select from:

  • Main retailers like Amazon, Costco, and Dwelling Depot
  • Tech manufacturers like Apple, Finest Purchase, and Sony
  • Attire and life-style manufacturers like Nike, Adidas, Patagonia, and Peloton
  • Journey and transportation firms like Airbnb, Uber, Delta, and Southwest Airways

Digital Playing cards

You’ll be able to generate as many digital card numbers as you want within the X1 app. Select from three several types of playing cards:

  • Customary playing cards which you can cancel anytime — good for recurring memberships or playing cards on file with retailers you purchase from repeatedly
  • 24-hour playing cards that expire after in the future — best free of charge trial memberships
  • One-time use playing cards — best for single purchases with manufacturers you’d desire to not have your card on file

Metallic Card

The X1 Credit score Card is a 17-gram piece of brushed stainless-steel, reasonably than a flimsy piece of plastic. This seems like a gimmick, and possibly it’s, however a steel card actually is extra sturdy. Should you use your bodily card loads, you’re much less prone to put on it down (or lose it) and need to go with out it when you await a substitute.

Including Licensed Customers (Secondary Cardholders)

You’ll be able to add as much as 5 approved customers to your account, which is nice in case you have youngsters accountable sufficient to make use of plastic (or steel, on this case). Notably, there’s no age restrict in your approved customers — you possibly can add folks beneath age 18. Simply do not forget that you’re accountable for their purchases. 

Cell Telephone Safety

Should you pay your month-to-month cellular phone invoice in full along with your X1 card, you qualify for complimentary cellular phone safety that kicks in in case your telephone is broken or stolen and must be repaired or changed. 

Visa Signature Advantages

The X1 card comes with a strong lineup of Visa Signature advantages, together with:

  • Prolonged warranties on eligible purchases
  • Journey interruption reimbursement for nonrefundable journey bills
  • Return safety on eligible objects
  • Loss and harm protection on rental vehicles paid in full with the cardboard
  • Journey and emergency help
  • Roadside dispatch

These advantages don’t price something further to maintain in reserve, however some (like roadside dispatch) could incur out-of-pocket bills if used.

Necessary Charges

The X1 Credit score Card doesn’t have an annual payment or overseas transaction payment. Different charges could apply, equivalent to charges for late and returned funds.

Credit score Required

The X1 Credit score Card is for folks with good or higher credit score. When you’ve got any important blemishes in your credit score historical past, you may not qualify for this card. Apply for a secured bank card or unsecured starter card as an alternative, then reapply for X1 when your credit score rating has improved.

Benefits of the X1 Credit score Card

The X1 Credit score Card has some important benefits over your replacement-level cash-back bank card. These are essentially the most notable.

  • Potential for a Very Excessive Credit score Restrict. The X1 Credit score Card has an progressive underwriting course of that may produce a better credit score restrict than competing playing cards. Your restrict may very well be 5 occasions increased right here, in line with X1, however this isn’t assured.
  • No Annual Payment. The X1 Credit score Card doesn’t cost an annual payment, so that you gained’t lose cash if it sits idle in your pockets.
  • Earn As much as 3x Factors on Eligible Common Purchases. On a regular basis purchases earn as much as 3x factors with X1, topic to annual spending minimums and month-to-month spending maximums. Nonetheless, that’s an above-average fee of return. 
  • No Age Restrict on Secondary Playing cards. You’ll be able to add approved customers no matter age, which is nice in case you have teenage youngsters accountable sufficient to make use of a bank card beneath your watchful eye. (The cardboard’s real-time transaction alerts turn out to be useful.)
  • Digital Playing cards for Free Trials and Single Purchases. X1 makes it straightforward to generate digital card numbers for conditions the place you don’t need a vendor to have your actual card quantity ceaselessly. Some rivals don’t supply this functionality.
  • Full Lineup of Visa Signature Perks. X1 is a Visa Signature card, which means it comes with fundamental journey insurance coverage protections, prolonged warranties, and different probably beneficial advantages.
  • Consumer-Pleasant App With Highly effective Account Administration Capabilities. The X1 app is extra highly effective than your commonplace bank card cell app. One significantly superior characteristic: easy-peasy dispute decision with just some faucets.

Disadvantages of the X1 Credit score Card

The X1 Credit score Card has some important drawbacks too. You resolve whether or not they’re value reconsidering your utility.

  • Low Level Worth at Redemption. X1’s rewards factors are value $0.01 at most when redeemed. To unlock this worth, you’ll want to redeem in opposition to purchases with taking part accomplice retailers — not tough, contemplating the accomplice listing consists of heavy hitters like Amazon, however nonetheless annoying. Straight money redemptions worth factors at simply $0.007 apiece.
  • 3x Factors Tier Requires Heavy Spending. You’ll want to spend at the least $15,000 per 12 months to earn 3x factors on all spending. That works out to $1,250 per 30 days, which generally is a stretch in case your earnings is modest otherwise you don’t use X1 as your main card.
  • Cap on 3x Rewards Tier. The 3x rewards tier has a most cap too. Should you spend greater than $7,500 in a given month, your earn fee goes again all the way down to 2x. This gained’t have an effect on many cardholders, but it surely’s an issue for those who do spend loads or for those who’re planning a significant buy within the close to future.

Is the X1 Credit score Card Legit?

Sure, the X1 Credit score Card is legit. It’s an actual bank card that earns actual rewards and has a rising base of glad clients.

This doesn’t imply that the X1 Credit score Card can be round ceaselessly or that you must rush to use for it. As a more moderen card that does some key issues in a different way, it’s a higher-risk proposition for X1. I wouldn’t be shocked if, in 2025, the X1 Credit score Card isn’t out there to new candidates, or if it’s nonetheless out there however seems unrecognizable in comparison with at the moment.

However for those who like what you’ve seen from X1 up to now, I gained’t discuss you out of making use of. Simply take a look at the cool field it is available in.

Alternate options to Think about

And for those who don’t like what you’ve seen from X1 up to now, otherwise you simply wish to see what else is on the market earlier than you apply? Think about these alternate options first.

Product Service Finest for
M1 Proprietor’s Rewards Credit score Card Seamlessly linking to your financial savings and investing accounts
Citi Double Money Card Flat-rate rewards (2% money again) with no gimmicks
Chase Freedom Limitless Credit score Card Lengthy introductory APR promotion on purchases and stability transfers
Chase Freedom Flex Credit score Card Excessive money again (as much as 5%) on eligible purchases
Chase Sapphire Most well-liked Card Incomes journey rewards and perks

Last Phrase

The X1 Credit score Card provides the potential (however not the assure) of a better credit score restrict than you will get elsewhere. Eligible purchases earn as much as 3 factors per $1 spent. And the highly effective cell app places all the pieces from single-use digital playing cards to transaction disputes at your fingertips.

But the X1 Credit score Card isn’t for everybody. The upper credit score restrict is a double-edge sword for those who’re simply tempted by impulse buys. The 3x rewards tier solely applies inside a sure spending vary. And the cell app is all about how you employ it — you gained’t get any worth from it for those who by no means open it.

So, do you have to apply for the X1 Credit score Card? That’s as much as you. Should you do, you possibly can ensure that the expertise can be totally different than any bank card you’ve needed to date.



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments