The waitlist has opened for the new X1 Credit Card, which is expected to launch in winter 2020. This card seems like a hybrid between Brex and the Apple Card, and I’m equal parts intrigued and skeptical. I can’t help but think that the card might just be too good to be true, and wonder…
Continue reading: New X1 Credit Card: Too Good To Be True?
Share your questions, experiences, and thoughts below.
Hi Lucky,
They don't have to make money for years to come as long as they can show exponential growth. This is typically Silicon Valley to tech start up model. They may eventually achieve profitability when they have large user base so they could negotiate better deal with those retailers. Uber is not making money. Even Snowflake is not making money. As long as they can show growth and sell the dream to get funding, it can last for years.
Here’s my referral code: https://x1creditcard.com/r/SKF5QpU
Interesting concept. Essentially a Brex-like competitor for the consumer market but with a rewards structure that presumably allows X1 to offer discounts that are absorbed by retailers.
Appreciate if you can use my link to join X1 card wait list. Thanks.
https://x1creditcard.com/r/PTq2Cd6
Ben,
It look very good to be true especially no hard pull.
However, do you know which financial institution is the issuer?
Paid it forward using Lou’s link. Here is mine and thanks! x1creditcard.com/r/W5JSv1n
Thank you in advance for kindly using my referral code.
x1creditcard.com/r/MojQ5QB
I used Kara's code listed above.
@bigbellyronpaul is right, with the added nuance that this company is probably betting that they’ll be able to make much better use of personal data than many issuers currently do (given the tech executives behind this card), and then monetize the hell out of that data. Big data, when used properly, is a goldmine (and is notoriously underutilized by traditional financial firms). There’s a huge untapped/undertapped revenue stream here, which allows this company to enrich the consumer value prop. The trade-off (if you want to call if that) is that you’ll probably have to (get to?) experience laser targeting like what you experience in the digital space today. It might end up feeling a bit “big brothery” to some users.
Another potential way they could make money: sell your personal information. Your employment, school, phone, address, income, etc is very valuable information for many businesses, such as insurance salesman and all.
Couple of points I might have missed above:
- This is a Bank of America card
- Relevant (as to our hobby) transfer partners are to Alaska & Delta and perhaps Hotel Tonight & airbnb.
Here is my code: https://x1creditcard.com/r/zb1yxgB
Ben,
I’m quite sure that retailers are footing a large share of the discount, with that amount still being less than your average cost per acquisition. That would explain the business model.
Interesting concept, to be sure.
@ Robin -- I would agree if the retailers were brands that frequently discount, but you think Apple and Delta would be providing meaningful discounts to a competing credit card product? I highly, highly doubt it...
I definitely think we may see close to two cent redemptions for brands that often discount, but I just don't see most of these brands offering much to X1 in exchange, and I don't think it's a core part of the business model. I could be wrong, though...
I believe the key is the income based credit limits.
This has the potential of granting some very high limits to individuals who are high income/high debt (think, young professionals) who will be likely to make purchases and pay off over time, generating finance charges.
My link, thanks x1creditcard.com/r/OsrTqNX
If you like hockey (and beer) then you need to use my referal link! https://x1creditcard.com/r/C9hwd50
(Worth a shot! lol)
Hey I just logged in....and this is crazy....
Here's my referral code: https://x1creditcard.com/r/w9iu2fJ
Use it maybe?
@Sam as one of those young professionals I think thats exactly right... this card seems custom tailored right down to the weird tech-y name
The business model isn't that mysterious. The restricted points you're earning are good at a limited number of vendors that have negotiated discounts/wholesale rates. Of course, given those restrictions you can earn more than the ~2% that cash back cards provide.
If those vendors work for you though, it sounds like a great deal if it lasts.
Here is my referral link: https://x1creditcard.com/r/TaEFk9I
Thanks again for the post and using my referral link. Happy days to you ☺️☺️
Thanks Julian,
Would appreciate if someone could return the favor.
https://x1creditcard.com/r/268mhMl
Ooh, all of my favorite things:
Former Twitter executives!
Bank of America!
Complete and utter lack of liquidity!
Imma jump right on that, hermano!
"transfer partners", or simply redeem at $0.01 cpp?
If it turns out to be a proper points-transfer, than this is a great deal (for transfer to Alaska/Delta).
If it is merely a 1 point = $.01c redemption for Alaska, then it's pretty meh.
Given the strong and exclusive partnership AmEx and Delta have for SkyMiles cards in the USA, I suspect that the partnership here is not about SkyMiles and they aren't a transfer partner per se. Instead, I'm thinking it's somehow through their gift card office that's been willing to offer modest but useful discounts to select merchant partners like the 10% off Delta GCs sale that Costco had around Thanksgiving last year. (I'm sitting on a decent amount in discounted Delta GCs at this point from another online shopping portal rebate site but need to burn credits from flights cancelled this year first)
It seems like they're following a fairly straightforward playbook for subprime cashflow underwriting cards ... and just not fully understanding the gaming possible with their rewards program.
This approach to what's called cashflow underwriting was first pioneered by Petal Card, though Brex was what made it famous on the business side. As noted above, it's had some success with getting a new class of consumers into the credit system, though the target consumer is more subprime than for the average rewards card.
The rewards program does make sense when you consider it through the lens of the expected behavior of their average consumer. In particular, note that the card is normally a 2% cashback card, with an upgrade to 3% only available after $15,000 in spend. Given that normal consumers spend ~20% of their gross income on their credit card and targeting moderate-income americans, with this program their average customer will earn little or nothing at the 3% rate. Similarly, 30 days of an extra 2% back compares favorably to the $100-$300 bounties big credit card banks are paying for customers. Since total interchange for a Visa Signature Select runs ~2.3% + 10c per transaction, they end up with a respectable margin here.
Of course, this does not account for MSers with their $500 Wallgreens purchases or million dollar tax (over)payments....
On the redemptions/partners side, they're probably partnering with one of the big partnership aggregators to offer those deals (the same way the shopping portals work). You can also take a look at point.app (a debit card) for another company taking the same approach.
Interesting prospect, we'll see if it pans out!
Here's my referral link to anyone who would be willing to help, still in medical school so any bit helps 🙂
This seems like the kind of company that will be in the news due to a data breach. And also the kind where the card benefits will rapidly change for the worse in year 2.
Used Lisfranc's link. Would appreciate if someone could return the favor!
https://x1creditcard.com/r/b8HsRm4
Use my referral code if you like to get 4X points for the first 30 days.
Link: https://x1creditcard.com/r/NpNxe5n
Code: NpNxe5n
Copy and paste in “sign up bonus”
I am honestly not sure if I see the value in this. Maybe is a a card for the band conscious. Basically you get 2x-3x back (depending on your spend) that you can redeem for gift cards at major brands (or at least the that is what the redemption image shows). The problem is if you buy tangible goods you can almost always get a better price by not buying through the Brand directly.
3 cents back (if you spend $15,000) is a decent value, but I think I would still get more value putting my money on the chase Trio of cards and getting ultimate rewards points.
https://x1creditcard.com/r/rAwi7xx
You can use this link to get yourself a month of 4x points. It'll also give me a month as well!
I used the code from @HockeyCoachBen - on the off chance you’d like to use mine from among the many here, it’s:
https://x1creditcard.com/r/Tq3GzJy
Thanks in advance if you decide to use it!
Paul
Let’s hope they will eventually make their points transferable, then it could be a really nice card.
Thanks for considering my link.
https://x1creditcard.com/r/ZonH3iz
Use referral code hyLUxyv or Sign up at the link below for 4x points for your first month! Plus get an additional month and move up the waitlist for every referral you get!
https://x1creditcard.com/r/hyLUxyv
You can join the wait list at https://x1creditcard.com/r/qzpRM2D
You can use sign-up code qzpRM2D for immediate 4x points for 30 days
Additionally, you can move up the wait list by answering a few questions after sign-up
@Ben/Lucky: What about cash back? Are you hooked redeem with the retailers or what's the return for cash back?
It's the same principle as Revolut. They're free and offer great things other banks/cards don't offer, until they attract a big enough customer base to start charging fees. Of course part of the customer base will walk away after the introduction of fees, but many will stay... Thus the need to create a hype.
Thank youTim! Would appreciate if someone could pay it forward for me.
https://x1creditcard.com/r/268mhMl
Consider my signup link please: https://x1creditcard.com/r/6S3tv2G I think people are missing some great benefits of the card. Create a virtual card that disappears when you want it to for such things as trails and one time payments. Put an extra lock on security.
Thanks interesting read, let's see if it goes live, please find my link :
https://x1creditcard.com/r/esZIXEL
Thank you for the information and thank you MH for the referral link.
Here's mine, thank you in advance if you use it!
x1creditcard.com/r/eyDpkwR
You can join the wait list at https://x1creditcard.com/r/qzpRM2D
You can use sign-up code qzpRM2D for immediate 4x points for 30 days
Additionally, you can move up the wait list by answering a few questions after sign-up
Paid it forward with Sarav's link!
Here’s my link for those of you that would like to pay it forward to me.
Can’t wait!
https://x1creditcard.com/r/iKHS0SV
I think the business model is based on data monetization!
Anyway, here’s my referral code btw if anyone wants to use it:
https://x1creditcard.com/r/Buh95BI
Thanks!!
Just signed up with Shane's code. Here is my referral code:
https://x1creditcard.com/r/HT928Wj
x1creditcard.com/r/1bujqWm
Sounds great no credit check need on income and it's a metal card can't wait to get mine
x1creditcard.com/r/kI7ouDl
I'm looking forward to the concept behind this card. I hope it's extremely beneficial to everyone who decides it's worth the wait!