The Upgraded, No-Fee X1 Is a Revolutionary Credit Card

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With a staggering waiting list of 600,000, the highly anticipated X1 credit card was launched to the public in mid-September 2022, quickly gaining immense popularity. This stylish, rewards-focused credit card boasts backing from notable figures in technology, finance, and social networking, including cofounders Deepak Rao and Siddharth Batra (known from Twitter), Max Levchin (cofounder of Spark Capital and PayPal), and David Sacks (PayPal’s founding COO).

The card is designed to impress, featuring a sleek aesthetic, no annual fee, and a robust earning structure. From X1’s unique application process to its immediate redemption options, everything about this card sets it apart from traditional credit cards.

Upon its launch, the X1 immediately stood out as a commendable travel credit card, offering redemption possibilities across various airlines and travel partners. Now, four months after its release, the card has refined its earning structure and enhanced certain benefits, increasing its value beyond its original offerings.

In this section, we explore the current features that position the X1 card as a game-changer in the credit card sector and reasons you might consider applying for it.

Credit limits determined by income rather than credit scores

Unlike most credit cards that rely on credit scores for approval, the X1 assesses eligibility and credit limits based on your present and anticipated income. During the application process, you will be required to log into your bank account(s) where your paychecks or other income are deposited. Your credit limit will be established based on this information, benefiting those with steady monthly income and providing relief for those who may lack the credit score needed for premier travel credit cards.

Exceptional earning potential for a no-fee card

The earning structure of the X1 is clever, straightforward, and frankly unprecedented for a card without an annual fee. You'll earn at least two points for every dollar spent using the card.

Once you spend over $1,000 within a calendar month, you'll begin to earn three points for every dollar spent for the remainder of that month. A convenient graphic in the app helps you monitor your progress toward reaching the three-point multiplier. You can continue to earn triple points on your next $6,500 of eligible purchases during that month, after which you’ll revert to earning double points once you exceed a total of $7,500 for the month (including the initial $1,000 and the additional $6,500).

The original iteration of the card offered a triple point multiplier based on yearly spending: after reaching $15,000 in a year, you would earn three points for every dollar spent on all past and future purchases. This annual benefit is currently being phased out in favor of a monthly benefit, and it is no longer available for new cardholders.

Points are earned and redeemable instantly

Unlike most credit cards that require you to wait until the end of a billing cycle to receive points or miles, X1 grants points immediately upon making a purchase, facilitating a quicker redemption process for points or cash back—both of which can be done with a simple tap in the app.

X1 points are valued at one cent each and can be redeemed with various airline partners, including:

• Alaska Airlines
• American Airlines
• Delta Air Lines
• JetBlue Airways
• Southwest Airlines
• United Airlines

It's essential to understand that X1 points cannot be transferred to these airlines' loyalty programs. Instead, points are redeemed as credits against purchases made directly with these airlines, with 100 points redeemable for $1 in statement credit.

Moreover, X1 points can also be used with other travel partners at the same rate of one cent per point, including:

• Hotel Tonight
• Hotels.com
• Vrbo
• Zipcar
  

A comprehensive range of insurance and benefits

Typically, no-fee cards come with fewer perks compared to their high-fee equivalents. However, the X1 card provides a complete range of Visa Signature travel and shopping protections that are often associated with cards that charge annual fees. These benefits include cell phone protection, trip interruption and cancellation insurance, purchase security, auto rental collision damage waiver, extended warranty coverage, and return protection.

Additional features we appreciate about the card

Beyond the major features mentioned earlier, there are several other attributes of the card that are worth highlighting.

The design

The X1 card is crafted from 17 grams of sleek stainless steel, offering a contemporary and stylish appearance that feels luxurious in hand.

Weekly Offers

The X1 app features a section called "Boosts," which presents weekly flash deals on your card. Every Friday, five new boosts become available in the app. Once activated, an offer remains valid for 24 hours, so choose wisely. Examples of boosts include "Earn three points on your next dining bill," "Earn 400 points on a purchase of $1,000 or more," and "Earn three points on your next grocery shopping." Who doesn’t appreciate a great reward?

Virtual Card Features

With the X1 app, users can instantly generate virtual credit cards, a vital feature for those prioritizing credit card security, needing cards for one-time use, or signing up for free trials. These virtual cards act as tokens for secure digital payments.

Shopping Rewards

You'll earn extra points when you shop through the links available in your app. Specifically, you can get 3 points on purchases from Apple and Home Depot, 10 points at Warby Parker and Nordstrom Rack, and 4 points at Bed, Bath & Beyond and Macy’s.

Key Insights

With its unique application process and a high earning potential without an annual fee, X1 is reshaping the credit card landscape. Although it doesn't offer a welcome bonus, the card provides numerous long-term advantages, making it an attractive option for everyday spending and accumulating points throughout the year.

While the offers outlined above were accurate at the time of publication, they may change at any time and could be altered or no longer available. This article was initially published in October 2022 and updated on January 24, 2023, with the latest information.