About once a year, I do a review of all of my credit cards. I check to make sure that I’m utilizing them in the best possible ways. Moreover, I look into new credit cards, just in case there is something else out there that might be a good fit. In doing that, I’ve come across the X1 credit card. Unlike with other credit card applications, your rejection or acceptance isn’t based on your credit score. Instead, it’s based on your income. It intrigues me.

Doing a Credit Card Review

I review all of my credit cards monthly for the basics:

  • What are the balances on each of my credit cards?
  • Does anything look off that would make me suspect credit card fraud or identity theft?
  • What is the current interest rate?
  • How much can I pay off on each credit card?

But once a year, I do a much more in-depth credit card review. In addition to double-checking all of the above things for each credit card, I check for the following things:

  • What are the rewards that I’ve accumulated in the past year? I prefer cash back rewards and typically cash them in once per year. If I have used a card that only offers points rewards, I use this time to buy gift cards or gifts for others.
  • How have I used the card? I drill down to figure out the types of things I’m spending on each card, the way I’m maximizing rewards, and where I might be spending too much? This is the time to review all recurring subscriptions with an eye towards canceling, renewing at a lower cost, or switching to a card with better rewards.
  • What perks does the card have? Have I taken advantage of those perks? I update my spreadsheet of information to remind myself which cards to use for travel, because they offer travel insurance, etc.
  • Does the card have any fees, such as an annual fee? If so, should I keep this card or cancel it?
  • Have I added an authorized user to this card? Should I?
  • Do I have a balance transfer offer that is worth taking advantage of?
  • Can I request a credit limit increase? Should I? Most often, if I think I’ll qualify, I make the request. That way, I have more available credit, of course. More importantly, I have a better ratio of debt owed to credit available, which is good for improving credit scores.

What I Look For in a New Credit Card

At this time of year, I also review new credit card offers. I look for good sign-up and first-year bonuses, especially on cards that don’t have an annual fee or that waive the first year’s annual fee. Moreover, I check for balance transfer and low interest opportunities. Additionally, I check to see if my current credit score qualifies me to apply for better credit cards that I might not have qualified for in the past.

The X1 Card Doesn’t Look at Credit Scores

In doing this review, I have come across a new credit card that doesn’t rely on credit scores at all. When you apply for the X1 credit card, the company reviews your income, not your credit score. This is entirely different from how all other credit companies approach the process. Therefore, if you have a low credit score but steady income, you might find this credit card appealing.

Of course, this isn’t very good for people who don’t have a strong income. In these times of pandemic layoffs and unprecedented unemployment claims, the X1 credit card might not work for a lot of people. But it can be good for those who are still working but whose credit score has diminished recently due to costs associated with COVID restrictions and changes. Moreover, it’s a good option for people who are just getting out of college and who have gotten new jobs but don’t yet have strong established credit history.

This is, perhaps, not surprising consider that the card was created by Thrive, the same company that created ThriveCash. The latter is a loan platform for students. They’re able to produce offer letters showing that they’ve gotten a summer internships or just-out-of-college job, and, based on those letters, they receive a line of credit. It’s another way of getting access to funds when you haven’t yet established a good credit score.

The Perks and Details of the X1 Card

The based-on-income feature is the main thing that makes the X1 card different from other credit cards. But, of course, you need all of the details when you consider applying for a new credit card. Here are some important things to know about the X1 card:

  • There is no annual fee.
  • There are also no late fees or foreign transaction fees with the X1 card.
  • The balance transfer fee is 2%, which is lower than many other credit cards.
  • The APR is a variable and ranges from 12.9% – 19.9%.

Earn Points on X1 Card

You earn points on all purchases which can be redeemed at various retailers including Anthropologie, Etsy, Peloton, and Warby Parker. You can increase your points per purchase by spending more money; points go up when you spend $15,000 pr more annually on the card. Furthermore, you can double your points on every purchase for a month for each time your unique referral link is used.

Easily Control Recurring Subscriptions

Also, I mentioned previously that one of my annual review things is to check on my recurring subscriptions. The X1 card simplifies that. It tracks those subscriptions for you. Moreover, you can cancel subscriptions from within the X1 app. But what’s even better is that anytime you want to sign up for a new service, but not commit to renewing it after the free trial, your X1 card will generate a virtual credit card that automatically expires at the end of the free trial. That’s a perk I can get behind!

Get a Higher Credit Limit

Your credit limit on the X1 credit card is “based on current and future income.” The company periodically reviews your income and offers credit limit increases. According to their website, people find that they get up to 5X as much credit on the X1 card as compared with their other credit card limits.

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