X1 - Who is it for?

[LADave]

Some time ago in the dark misty past, for reasons that have been lost to the sands of time, I applied to get on the waitlist for the X1 card. And this weekend, I received a notice that I'm off the waitlist and can apply the card.

Now that it's happened, I'm wondering: should I?

Since the start of the year I've been holding out for a travel rewards card with either Capital One or Chase, but I can't help but wonder what would happen if I did apply. As I understand it, the card is better than even the Goldman Sacks cards (Apple and GM) in no hard pulls for an application, even after you accept an offer from them. (If I'm mistaken, please let me know.) (Edit: Yep, that's definitely not the case now.)

I understand that their SLs tend to be very generous compared to other cards, and the rewards tend to be good too: 2% minimum, 3% if you're spending more than $15k a year, and 4% for 30 days after referring a new customer to the card. 

But the process of using those rewards leaves a lot to be desired, at least for me. Points can only be used as a statement credit for purchases with a very limited number of merchants. (Some customers see an option to get a statement credit with fewer restrictions, but at a lower rate per point.) And while there's no annual fee, there's also no sign-up bonus. 

I would also have to wait longer to apply for any Chase cards, which I frankly value more right now than I like the X1 rewards structure.

One reason I haven't applied yet is because they advertise generous SLs - and I might find that too tempting to get out of the garden. A higher SL would lower my utilization, and perhaps even make it easier to get higher limit cards in the future. But I finally become eligible for Chase cards later this year if I don't get any other cards in the meantime, and getting this would throw a wrench in my gardening strategy.

I'm wondering if there's something I'm missing here that explains the mystique surrounding this card, besides its being a metal card with some brilliant marketing behind it. Who is this card actually for, and what kinds of customers actually get the most out of it?

[DONZI]

I'm a collector of sorts... art, stamps, cars, matchbooks, antiques, coins, etc. However I never really thought about collecting credit cards. Cards like this kind of appeal to me as a collector. So, I'd say that's one type of motivation.

I can more easily name reasons I don't want this card.. or if I had it, why it'd likely be unused.

[SouthernCredit]

One of the main reasons I got it was for the redemptions; my family and I frequently shop a lot of those merchants that get the good redemptions. I didn't need the utilization help, but it also never hurts. While it isn't my daily, it is in rotation, more heavily so now while I have the 4x points that I'm still riding from some invitations I sent out that were accepted. I didn't have a 2% card before this, so it will probably serve that purpose after the 4x expires. 

[Remedios]

Who is it for? 

Well, at first it was for those who suffer from HP phobia but have high SL aspirations. 

Now that there is HP, it's toned down a bit, novelty wore out, and I cannot say that I've seen much in terms of "oh, I'll use my X1 for this and that"  

So (according to me, pre-coffee) I think a few might have use for it, but mostly it's utilization padding. 

It's just like Aspiration Zero card...so many applications, very few mentions of use. 

That one has also taught us that $60 AF is perfectly acceptable fee for otherwise useless card as long as SL is high and there is SUB. 

I've wondered whats the point spend/rewards wise outside of the SUB, and I came up with nothing.

Then again, I feel the same way about many of my cards 🤷‍♀️

[AlanGJP]

I actually really like this card...

First off, forget the misinformation behind no HP. They definitely do a HP. Mine happened the day I received notification my card shipped. (I believe it was EX)

As for the points, since I signed up under someone else I get 4X for 30 days - as you mentioned. However, they have what's called Boosts on many categories and spend.

My current available boosts:

• 5X when I use Apple Pay or Google Pay
• 5X on your next restaurant purchase
• 5X on your next grocery purchase
• 5X on your next food delivery purchase
• 5X on your next Amazon purchase
• 5X on your next Uber or Lyft ride
• 5X on your next drugstore purchase
• Earn 100 Points on your next $100+ purchase
• Earn 200 Points on your next $500+ purchase
• Earn 400 Points on your next $1,000+ purchase

These do need to be activated before use (a 24 hour counter starts when you activate any of those - and activation can be cancelled - not sure if they revert after 24 hours of non-use). Most (all?) have a limited number of uses before they disappear. I'm assuming these are per 30 days before they refesh? (Clarification?) I've yet to exhaust any of my boosts and I've used a few in the week I've had the card.

Beyond that you get 3X for all purchases once you hit $15k spend in a year. This does appear to be retro-active from the verbage in the app.

Points can be redeemed for 0.7 cents/pt cash back. Which while lower - if you're getting 3-5X, that is a pretty nice redemtion value imo.

I've made this and my Amex my default cards now. At least while I'm under that 30 day 4X boost.

[Aim_High]

In keeping with some other recent "Fintech" cards, I think the X1 appeals most to:

• Later Millenials (1981 - 1996) - Gen Z (1997 - 2010) who were born and raised around computers and technology
• Consequently, consumers who also have less privacy concerns about 'big data" and don't mind allowing PLAID unfettered access to their banking account to collect marketing data.
• Consumers with high income and thin credit file (think young college-educated professional adults) who want access to higher credit limits without having to grow limits slowly over time as done by traditional methods.
• Or, consumers with otherwise established credit and high income who expect a higher SL and mainly get the card for utilization padding. 
• Consumers who like the idea of having new generation credit cards that are 'reimagined' ... "X1 Card is built from the ground up to transform how you shop and spend."   "The SMARTEST Credit Card Ever Made."   As we "boomers" would say, they're marketed to be hip, slick, and cool.   My credit card is smarter than your credit card. 
  
• Consumers who like the allure of the polished metal card.  IMO, the metal cards (just for the sake of metal cards) have also become much more popular with the above generations than with Baby Boomers or Gen X, who seem to value the older metal cards with traditional banks based on the rewards and perks associated with them.  

I'll point you to my own evaluation of whether the X1 card was a worthwhile card for me.  I decided it was not.  >>Read HERE<<

[FinStar]

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@Remedios wrote:

Who is it for? 

Well, at first it was for those who suffer from HP phobia but have high SL aspirations. 

Now that there is HP, it's toned down a bit, novelty wore out, and I cannot say that I've seen much in terms of "oh, I'll use my X1 for this and that"  

So (according to me, pre-coffee) I think a few might have use for it, but mostly it's utilization padding. 

It's just like Aspiration Zero card...so many applications, very few mentions of use. 

That one has also taught us that $60 AF is perfectly acceptable fee for otherwise useless card as long as SL is high and there is SUB. 

I've wondered whats the point spend/rewards wise outside of the SUB, and I came up with nothing.

Then again, I feel the same way about many of my cards 🤷‍♀️

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In addition to what Remedios mentioned upthread (which pretty much nailed it), even most folks that were approved early on have not seen their tradeline report as of yet. So, while the appeal of a huge credit limit (and metal design) to pad utilization was the theme for some, it looks like it hasn't provided that 'benefit' in that regard as of yet. 

X1 has stated it will report to the CRAs, but maybe it will remain under its invisibility cloak for a while 🤷‍♂️

[LADave]

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@Aim_High wrote:

I'll point you to my own evaluation of whether the X1 card was a worthwhile card for me.  I decided it was not.  >>Read HERE<<

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That's quite a comprehensive evaluation. I haven't seen anywhere else that they require users to keep their back accounts connected to Plad to keep the card, and I have seen reports of customers who were approved who couldn't connect to Plad (they had to send copies of their bank statements). Either way, if they require ongoing access to bank statements, that is a serious privacy concern. I don't really want to help make that acceptable by buying into that practice.

I'm at a point in my credit rebuilding where I want higher credit limits, but it's also not the highest concern for me. Getting good rewards is much higher on my list of priorities, and I don't like X1's redemption scheme.

The benefits are still a lot better than with some of my current rebuilder cards that I'm planning to get rid of, and I'm curious what they would give me for a SL. But at the end of the day, it seems like a card that just doesn't fit in with my current strategy/goals.

I would only "apply" for the card if I knew that I could reject any offer from them after being accepted, thus avoiding a hard pull. And even then, I'm still concerned about showing them my bank info.

[LADave]

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@FinStar wrote:

In addition to what Remedios mentioned upthread (which pretty much nailed it), even most folks that were approved early on have not seen their tradeline report as of yet. So, while the appeal of a huge credit limit (and metal design) to pad utilization was the theme for some, it looks like it hasn't provided that 'benefit' in that regard as of yet. 

X1 has stated it will report to the CRAs, but maybe it will remain under its invisibility cloak for a while 🤷‍♂️

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If that's the case, then it's a hard no for me. My goal in having a less desirable higher limit card is to have it reported so it's easier to get more desirable higher limit cards later. 😂

[Aim_High]

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@LADave wrote:

.... I haven't seen anywhere else that they require users to keep their back accounts connected to Plad to keep the card, and I have seen reports of customers who were approved who couldn't connect to Plad (they had to send copies of their bank statements). Either way, if they require ongoing access to bank statements, that is a serious privacy concern. I don't really want to help make that acceptable by buying into that practice.

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Just to clarify, @LADave, my posting assumed that someone connected their bank account with the application then and kept it connected since X1 states that is how they evaluate for higher credit limits.  I think that is the carrot to keep you connected.  For those who have to send in statements or who unplug from Plaid after applying, I don't know the implications.  But personally, I didn't even want to allow third-party access to my banking for the approval process, much less for an extended period of time.