X1 Card raises $12 million for its credit card with limits based on your income – TechCrunch

X1 Card is elevating a $12 million funding spherical. The corporate is constructing a bank card that units limits based mostly in your present and future revenue, not your credit score rating.

Spark Capital is main the spherical with Jared Leto, Aaron Levie, Jeremy Stoppelman, Max Levchin and Ali Rowghani additionally collaborating. American Specific veteran Ash Gupta can be becoming a member of the corporate as an advisor — he was the Chief Danger Officer of American Specific.

The corporate says that it has attracted practically 300,000 signups on its waitlist. I lined X1 Card back in September and it attracted a number of readers. In order that quantity doesn’t shock me.

The X1 Card is a stainless-steel Visa bank card with a distinct origin story. Once you apply for a card, as an alternative of figuring out your limits based mostly in your credit score rating, the corporate needs to see your present and future revenue.

The startup believes the credit score rating system is outdated and doesn’t replicate your creditworthiness. That’s why it doesn’t use it to calculate limits. Your credit score rating nonetheless impacts your variable APR (from 12.9% to 19.9%), however that’s it.

There are additionally a number of software program options that work with the bank card. As an example, you’ll be able to observe your subscriptions from the X1 app, you may also generate an auto-expiring digital card totally free trials that require a bank card. You additionally get notifications for refunds.

As for rewards, you get 2X factors on all purchases. If you happen to’re a heavy consumer and also you spend greater than $15,000 in your card per yr, you’re upgraded to a brand new tier and earn 3X factors. There’s additionally a viral component as you get a boosted reward degree whenever you refer a pal — you get 4X factors for a month. You’ll be able to then spend your factors with retail companions.

The corporate has promised a number of options and now has sufficient money in its checking account to ship. Let’s see if the corporate can reside as much as the hype as soon as the primary clients get their playing cards. But it surely’s clear that the credit score rating system is outdated.