5 Things to Know About the First Digital Credit Card - NerdWallet (2023)

FAQs

What are 5 things credit card companies don t want you to know? ›

Since the X1 credit card doesn't use credit scores in its approval determination, it will not affect the credit scores of those who are declined. Those who are approved for the card and accept will experience a hard pull on their credit, which may slightly affect their credit score.

Invented in 1950, the Diners Club card is known as the first modern-day credit card. The idea came from Frank McNamara, a businessman who'd forgotten his wallet while out to dinner in New York. He and his business partner Ralph Schneider would soon invent the Diners Club card as a way to pay without carrying cash.

X1 Card Income Requirements

During the prequalification process, you will mention your annual income and then link your personal banking accounts using Plaid to verify your claim. The income verification process is easiest when you receive direct deposits as they automatically categorize as earned income.

Total of payments, Payment schedule, Prepayment/late payment penalties, If applicable to the transaction: (1) Total sales cost, (2) Demand feature, (3) Security interest, (4) Insurance, (5) Required deposit, and (6) Reference to contract.

The $0-annual-fee X1 Card is a rewards-earning credit card that lowers many of the traditional barriers to credit access. It's possible to find out whether you're approved with no impact on your credit scores, and those with less-than-ideal credit histories may still qualify.

X1's waitlist has 500,000 people on it, according to Rao. Chan said hearing users rave about the card's interface helped sway him in its favor.

Marketed as a “smart card,” the X1+ Card features all that the original X1 Card offers, plus additional perks, protections and rewards. The waitlist opens Jan. 26, 2023, and the card will be available to consumers this spring.

Rule #1: Always pay your bill on time (and in full) The most important principle for using credit cards is to always pay your bill on time and in full. Following this simple rule can help you avoid interest charges, late fees and poor credit scores.

What are 5 facts about credit cards? ›

However, it's generally a good idea to have two or three active credit card accounts, in addition to other types of credit such as student loans, an auto loan or a mortgage. Just remember: The number of credit cards you own is less important than how you use them.

The points you earn with the X1 or X1+ Card are worth 0.7 cents each for cash back and one cent each as a statement credit for purchases with over 50 brands, including Airbnb, Apple, Best Buy, Amazon, Etsy and many more. X1+ cardholders have additional redemption options that include: Four Seasons Hotels and Resorts.

The best alternatives to X1 Card are Apple, Uber, and Petal. If these 3 options don't work for you, we've listed over 10 alternatives below.

What credit bureau does X1 card use? Users report a hard pull from Experian upon approval and reporting to Experian and Transunion. The card should start to report to all three bureaus once they have enough cardholders to do so.

The rule dictates that total consumer debt shouldn't exceed 20% of your annual take-home pay and monthly debt payments shouldn't exceed 10% of your monthly take-home pay. This rule of thumb can help consumers cap the amount of debt they hold, which is important for their financial health and their credit score.

Red Flag Alert examples include address discrepancies, Social Security number discrepancies, or information provided by the applicant is inconsistent with information on the consumer in the credit file.

line of credit. so what this means. is that you are going to wait 91 days and. three full statement cycles before you decide. to ask either for a credit limit increase. or for a new line of credit all together. to maximize the amount of funding that you get.

2/3/4 Rule

Here's how the rule works: You can be approved for up to two new credit cards every rolling two-month period. You can be approved for up to three new credit cards every rolling 12-month period. You can be approved for up to four new credit cards every rolling 24-month period.

What are the three C's of credit cards? ›

Examining the C's of Credit

For example, when it comes to actually applying for credit, the “three C's” of credit – capital, capacity, and character – are crucial. 1 Specifically: Capital is savings and assets that can be used as collateral for loans.

Tier 1 credit is generally defined as a credit score of 750 or higher. The term is most commonly used among auto lenders, but other lenders use it as well. People with tier 1 credit have the highest level of creditworthiness and will usually receive the most favorable terms on loans and lines of credit.

A perfect credit score of 850 is hard to get, but an excellent credit score is more achievable. If you want to get the best credit cards, mortgages and competitive loan rates — which can save you money over time — excellent credit can help you qualify. “Excellent” is the highest tier of credit scores you can have.

Visa Infinite is the highest level of Visa-branded credit cards, above Visa Signature and Visa Traditional. There are only a few Visa Infinite cards in the U.S., as they're typically only the most high-end credit cards offering the best benefits of any card on the Visa network.

The minimum payment mindset

Here's how most people get trapped in credit card debt: You use your card for a purchase you can't afford or want to defer payment, and then you make only the minimum payment that month.

The X1 card is made with 17 grams of sleek stainless steel. AFAR partners with CreditCards.com and may receive a commission from card issuers.

The X1+ Card is a travel credit card version of the previously released X1 Card. This $75 annual fee card comes with benefits like airport lounge access for flight delays of at least one hour.

4. The referral bonus isn't taxable, like most others. Only some credit cards offer a referral bonus, and X1 is one of them. You can invite as many friends as you want, and if they get the card, you both can earn 4x, 5x or even 10x points on all of your purchases for up to 30 days.

We may report information about this Account to credit bureaus in the Authorized User's name that may appear on their credit report. This could include information about late payments, overlimit amounts, returned payments or other violations of this Agreement.

What is the credit card 7% rule? ›

Individuals with a classic FICO score above 795 use an average 7% of their available credit. As your revolving debt climbs, your credit score will begin dropping — long before it reaches the recommended utilization limit of 30% of your available credit.

The Takeaway

The 15/3 credit card payment rule is a strategy that involves making two payments each month to your credit card company. You make one payment 15 days before your statement is due and another payment three days before the due date.

2 in 90 Rule

You can only get approved for two credit cards every 90 days. This means that if you apply for a third card within the 90-day window, you'll automatically be rejected. These rules apply to credit cards only and not charge cards, so you can apply for as many charge cards as you like.

Note: This is one of five blogs breaking down the Four Cs and a P of credit worthiness – character, capital, capacity, collateral, and purpose.

There's no such thing as a bad number of credit cards to have, but having more cards than you can successfully manage may do more harm than good. On the positive side, having different cards can prevent you from overspending on a single card—and help you save money, earn rewards, and lower your credit utilization.

Credit experts advise against closing credit cards, even when you're not using them, for good reason. “Canceling a credit card has the potential to reduce your score, not increase it,” says Beverly Harzog, credit card expert and consumer finance analyst for U.S. News & World Report.

A good guideline is the 30% rule: Use no more than 30% of your credit limit to keep your debt-to-credit ratio strong. Staying under 10% is even better. In a real-life budget, the 30% rule works like this: If you have a card with a $1,000 credit limit, it's best not to have more than a $300 balance at any time.

Generally, first-time credit card applicants receive small credit limits. A credit limit of $500 to $1,000 is average for a first credit card, but it may be higher if you have, say, a history of on-time car payments on your credit file.

80,000 American Express points are worth about $536, depending on which American Express credit card you have and what you spend the points on. You will get the best value for your American Express points when you redeem them for Travel, but there are multiple redemption options.

How much is 2 million AMEX points? ›

AMEX points can be used for a variety of rewards including travel, merchandise, gift cards, and statement credits. Assuming an average value of 1 cent per point, 2 million AMEX points would be worth $20,000. However, if the points are redeemed for travel, they can potentially be worth more.

The Centurion card beats out the Mastercard Black card in terms of rewards, benefits, and features. The major drawback of the Centurion card is its $10,000 initiation fee and $5,000 annual fee (plus $5,000 annually for each authorized user).

The company is cofounded by Twitter alums Deepak Rao and Siddharth Batra and backed by PayPal co-founder Max Levchin and founding COO David Sacks, Harrison Metal founder Michael Dearing, former Twitter COO Adam Bain, Libra co-creator & Instagram's former head of product Kevin Weil and more.

No, there aren't any credit cards higher than the “Amex Black Card.” Officially called the Centurion® Card from American Express, the Amex Black Card is far and away the most exclusive, prestigious credit card on the market.

Since the X1 credit card doesn't use credit scores in its approval determination, it will not affect the credit scores of those who are declined. Those who are approved for the card and accept will experience a hard pull on their credit, which may slightly affect their credit score.

Fees. The X1 Card has no annual fee, no late fees and no foreign transaction fees, so international travelers can use it anywhere in the world that accepts Visa without additional costs. Variable interest rates from 15.50% -27.75%.

Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.

Lenders must provide a Truth in Lending (TIL) disclosure statement that includes information about the amount of your loan, the annual percentage rate (APR), finance charges (including application fees, late charges, prepayment penalties), a payment schedule and the total repayment amount over the lifetime of the loan.

What are the five red flag categories? ›

In addition, we considered Red Flags from the following five categories (and the 26 numbered examples under them) from Supplement A to Appendix A of the FTC's Red Flags Rule, as they fit our situation: 1) alerts, notifications or warnings from a credit reporting agency; 2) suspicious documents; 3) suspicious personal ...

Unusual transactions

Customers trying to launder funds may carry out unusual transactions. Firms should look out for activity that is inconsistent with their expected behavior, such as large cash payments, unexplained payments from a third party, or use of multiple or foreign accounts. These are all AML red flags.

By definition, predatory lending benefits the lender and ignores or hinders the borrower's ability to repay the debt. These lending tactics often try to take advantage of a borrower's lack of understanding about loans, terms or finances.

These warning signs can include: Difficulty paying bills on time. Receiving collection calls or past due notices. Living in your overdraft or line of credit.

The color red represents hardiness and valor, as well as courage and readiness to sacrifice. It is also sometimes said to represent the blood shed by those who have fought to protect our freedom and our country.

Yes, credit card companies do like it when you pay in full each month. In fact, they consider it a sign of creditworthiness and active use of your credit card. Carrying a balance month-to-month increases your debt through interest charges and can hurt your credit score if your balance is over 30% of your credit limit.

Only have a credit card if you pay in full each month.

This is the single most important rule of credit cards. Your best financial move is to repay your credit card balance in full each month. Otherwise, you will be subject to high interest charges.

The five Cs of credit are important because lenders use these factors to determine whether to approve you for a financial product. Lenders also use these five Cs—character, capacity, capital, collateral, and conditions—to set your loan rates and loan terms.

What are the 5 Cs of credit? Lenders score your loan application by these 5 Cs—Capacity, Capital, Collateral, Conditions and Character.

What are 3 things consumers need to be aware of when applying for a credit card? ›