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

X 1 card Raising a funding round of $ 12 million. The company is creating a credit card that sets a limit based on your current and future income, not your credit score.

Spark Capital is also participating alongside Jared Leto, Aaron Levy, Jeremy Stopelman, Max Levchin and Ali Rovaghani. American Express veteran Ash Gupta is also joining the company as a consultant – he was the chief risk officer of American Express.

The company says it has attracted about 300,000 signups on its waitlist. I covered x1 card Back in september And it attracted a lot of readers. So this number does not surprise me.

The X1 card is a stainless steel Visa credit card with a different origin story. When you apply for a card, instead of setting your limit based on your credit score, the company wants to see your current and future income.

The startup believes that the credit score system is outdated and does not reflect your credibility. This is why it does not use it to calculate boundaries. Your credit score still affects your variable APR (from 12.9% to 19.9%), but it is.

There are also many software features that work with credit cards. For example, you can track your subscription with the X1 app, you can also create an auto-expiring virtual card for free trial that requires a credit card. You also get notifications for refunds.

For the prize, you get 2X points on all purchases. If you are a heavy user and you spend more than $ 15,000 on your card per year, you upgrade to a new level and earn 3X points. There is also a viral element because when you refer a friend you get an enhanced reward level – you get 4X points for a month. You can then spend your talk with a retail partner.

The company has promised a lot of facilities and now has enough cash in its bank account. Let’s see if the first customers can stay for company promotions after getting their cards. But it is clear that the credit score system is outdated.