10/19/2021

A New Credit Card Arrives—With a Silicon Valley Twist

The X1 is designed for young, high-earning spenders who live on their phones

When Deepak Rao founded his first startup, in 2011, he put all of his business expenses on two personal credit cards, with a combined credit limit of about $3,000. "They were totally maxed out all the time," he said. "To this date, my credit score has never recovered." Even after four years of working at Twitter with a product manager's salary, Rao still couldn't qualify for credit cards with the kinds of perks he wanted: ones that paid for vacations or gave him points at the places he liked to shop.

With his second startup, Rao is trying to solve that problem. The X1, a new credit card, is designed for people who want premium perks—with or without premium credit scores. It uses a novel underwriting process, which links with a user’s bank account to determine credit limits based on cash flow. The card promises up to five times higher credit limits than the average card.

The card itself is made of stainless steel—the kind of objet d'art that is advertised as making a pleasant clang when you drop it—but it's meant to be used digitally, like the Apple Card. It has a sleek app that gives users the ability to create disposable "virtual" cards, cancel subscriptions with one click and make anonymous transactions without giving out a real name or card number. Its points are redeemable at a list of merchants frequented by the stereotypical tech bro: Peloton, Patagonia, Allbirds and Airbnb.

Please select this link to read the complete article from WIRED.