best credit cards

Income, Not Credit Score, Counts for X1 Credit Card

September 23, 2020 By Kathryn Vercillo Leave a Comment

About once a year, I do a review of all of my credit cards. I check to make sure that I’m utilizing them in the best possible ways. Moreover, I look into new credit cards, just in case there is something else out there that might be a good fit. In doing that, I’ve come across the X1 credit card. Unlike with other credit card applications, your rejection or acceptance isn’t based on your credit score. Instead, it’s based on your income. It intrigues me.

Doing a Credit Card Review

I review all of my credit cards monthly for the basics:

What are the balances on each of my credit cards?
Does anything look off that would make me suspect credit card fraud or identity theft?
What is the current interest rate?
How much can I pay off on each credit card?

But once a year, I do a much more in-depth credit card review. In addition to double-checking all of the above things for each credit card, I check for the following things:

What are the rewards that I’ve accumulated in the past year? I prefer cash back rewards and typically cash them in once per year. If I have used a card that only offers points rewards, I use this time to buy gift cards or gifts for others.
How have I used the card? I drill down to figure out the types of things I’m spending on each card, the way I’m maximizing rewards, and where I might be spending too much? This is the time to review all recurring subscriptions with an eye towards canceling, renewing at a lower cost, or switching to a card with better rewards.
What perks does the card have? Have I taken advantage of those perks? I update my spreadsheet of information to remind myself which cards to use for travel, because they offer travel insurance, etc.
Does the card have any fees, such as an annual fee? If so, should I keep this card or cancel it?
Have I added an authorized user to this card? Should I?
Do I have a balance transfer offer that is worth taking advantage of?
Can I request a credit limit increase? Should I? Most often, if I think I’ll qualify, I make the request. That way, I have more available credit, of course. More importantly, I have a better ratio of debt owed to credit available, which is good for improving credit scores.

What I Look For in a New Credit Card

At this time of year, I also review new credit card offers. I look for good sign-up and first-year bonuses, especially on cards that don’t have an annual fee or that waive the first year’s annual fee. Moreover, I check for balance transfer and low interest opportunities. Additionally, I check to see if my current credit score qualifies me to apply for better credit cards that I might not have qualified for in the past.

The X1 Card Doesn’t Look at Credit Scores

In doing this review, I have come across a new credit card that doesn’t rely on credit scores at all. When you apply for the X1 credit card, the company reviews your income, not your credit score. This is entirely different from how all other credit companies approach the process. Therefore, if you have a low credit score but steady income, you might find this credit card appealing.

Of course, this isn’t very good for people who don’t have a strong income. In these times of pandemic layoffs and unprecedented unemployment claims, the X1 credit card might not work for a lot of people. But it can be good for those who are still working but whose credit score has diminished recently due to costs associated with COVID restrictions and changes. Moreover, it’s a good option for people who are just getting out of college and who have gotten new jobs but don’t yet have strong established credit history.

This is, perhaps, not surprising consider that the card was created by Thrive, the same company that created ThriveCash. The latter is a loan platform for students. They’re able to produce offer letters showing that they’ve gotten a summer internships or just-out-of-college job, and, based on those letters, they receive a line of credit. It’s another way of getting access to funds when you haven’t yet established a good credit score.

The Perks and Details of the X1 Card

The based-on-income feature is the main thing that makes the X1 card different from other credit cards. But, of course, you need all of the details when you consider applying for a new credit card. Here are some important things to know about the X1 card:

There is no annual fee.
There are also no late fees or foreign transaction fees with the X1 card.
The balance transfer fee is 2%, which is lower than many other credit cards.
The APR is a variable and ranges from 12.9% – 19.9%.

Earn Points on X1 Card

You earn points on all purchases which can be redeemed at various retailers including Anthropologie, Etsy, Peloton, and Warby Parker. You can increase your points per purchase by spending more money; points go up when you spend $15,000 pr more annually on the card. Furthermore, you can double your points on every purchase for a month for each time your unique referral link is used.

Easily Control Recurring Subscriptions

Also, I mentioned previously that one of my annual review things is to check on my recurring subscriptions. The X1 card simplifies that. It tracks those subscriptions for you. Moreover, you can cancel subscriptions from within the X1 app. But what’s even better is that anytime you want to sign up for a new service, but not commit to renewing it after the free trial, your X1 card will generate a virtual credit card that automatically expires at the end of the free trial. That’s a perk I can get behind!

Get a Higher Credit Limit

Your credit limit on the X1 credit card is “based on current and future income.” The company periodically reviews your income and offers credit limit increases. According to their website, people find that they get up to 5X as much credit on the X1 card as compared with their other credit card limits.

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1. What is the Surge Mastercard Interest Rate?

The Surge Mastercard is considered a starter card or a card for people with poor credit. It isn’t uncommon for cards in this category to have interest rates that are higher than the average, which was just over 15 percent for Q3 2019.

However, the Surge Mastercard interest rate is actually pretty high for even the starter category. It is set at a variable 29.99 annual percentage rate (APR) for purchases. If you carry a balance, what you owe can grow quickly, particularly if you only make the minimum payment on your card.

On a good note, you do have a 25-day grace period after the closing of your previous billing cycle. If you are able to completely pay off the statement balance during that time, you can avoid interest charges on the new purchases. But missing that window will cost you big time.

2. Is There an Annual Fee?

Yes, the Surge Mastercard has an annual fee, and it is painfully high. Also, the fee applies to both secured and unsecured versions of the card, so you can’t avoid it by putting down a deposit and going the secured route. Essentially, the yearly fee is unavoidable.

For the first year, the annual fee comes in at a shocking $125. That’s an astonishing 25 percent of the card’s initial limit. To make matters worse, the first year’s fee is assessed right when you start using the card. That means your $500 credit limit Surge Mastercard is technically only a $375 credit limit card when it first ends up in your hands, as $125 of the available credit is used to cover that fee. You will also be charged interest on that $125 if you don’t pay it off immediately.

After the first year, the annual fee does go down, but it’s still incredibly high for a non-reward, credit-building card. Every year after, the yearly fee is $96. Like the first-year fee, you also owe interest on the $96 if you don’t pay it off right away. However, that $96 (and any accruing interest) is not the only cost you’ll have to contend with if you choose the Surge Mastercard.

3. Are There Any Additional Costs?

Yes, along with the annual fee, after the first year, you also have to pay a monthly maintenance fee. Every month, cardholders are charged $10 for maintenance on top of any interest they accrue. That means an additional $120 per year in fees regardless of whether you carry a balance. In total, in the second year and beyond of having the card, you’ll pay a gut-wrenching $216 in fees. Considering the initial credit limit is $500 (which may be raised after you have the card for 12 months, but that isn’t guaranteed), the percentage of your available credit that might get sucked up in fees is pretty horrifying.

If that $10 isn’t paid off immediately each month, like the rest of the balance, interest accrues on that as well. This can drive your balance up quickly.

For cardholders who want to add an authorized user to their Surge Mastercard account. There’s another one-time fee to do that. It will cost you $30 to list anyone else as an authorized user, and that’s a pretty big fee for that kind of activity.

As for other costs, if you opt for a cash advance, you’ll get stuck with a 5 percent fee for that along with the variable 29.99 percent APR. If you’re late making a payment. Your late fee can be up to $39. There’s also a foreign transaction fee of 3 percent. Although, that actually isn’t out of the ordinary for cards at this level.

Build Your Credit History

Ultimately, the Surge Mastercard could allow people with little or poor credit to build a better credit history and raise their score. However, there are better options out there. To include those who may approve poor or no credit borrowers and don’t charge such painfully high fees. In all reality, the Surge Mastercard should be considered a last resort in most cases. Especially since there is no guarantee you’ll be approved for an unsecured card. The fees are ridiculous for a starter card and interest rate is astronomically high.

Are there other questions you ask when you are considering a new card like the Surge Mastercard? Are there certain answers you consider deal breakers? Share your thoughts in the comments below.

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The Best Credit Cards for Amazon Purchases

June 3, 2014 By Guest Writer 2 Comments

best credit cards to buy from Amazon.com

By Will Charles

Amazon.com is one of the most well known and popular online retailers, because of this in 2013 they did $74.45 billion in revenue. If you’re anything like me you do a lot of your shopping on amazon, as such it’s important to have a credit card that earns at a high rate for this online juggernaut. We did the research and came up with some suggestions if you are looking for the best credit cards for Amazon purchases.

Amazon.com Store Card

The Amazon.com store card is one card to consider if you spend a lot of times shopping in the Amazon.com. They offer six, 12 and 24 month special financing financing terms for smaller purchases, no annual fee and 5% cash back for Amazon Prime members. The only thing with this card is that the interest rate is 26% so its only for those who won’t carry a balance. Check out the terms by clicking on the picture below.

If you don’t want to go the store card route, here are some other options.

Amazon.com Rewards Visa Card From Chase: 3% Cash Back

A lot of people wrongly assume that the amazon.com card offered by Chase is the best on the market when it comes to purchases on Amazon.com. Both companies rely on this knowledge and instead of offering an amazing cash back rate on Amazon purchases they instead only offer 3%. As you’ll see in this post, there are MUCH better options out there than this card.

American Express Blue Cash: 3% Cash back

This card earns 3% cash back on grocery stores, thankfully almost all grocery stores stock Amazon gift cards. Similar to the card offered by Chase this card also offers 2% back on gas purchases, the key difference is that there is a sign up bonus of $100 when you spend $1,000 within the first three months.

American Express Everyday Preferred : 4.5 American Express MR Points

This card earns 3 American Express membership rewards points per dollar spent at grocery stores, you also get a 50% bonus if you do a minimum of 30 transactions per month – bringing the total to 4.5 MR points per dollar spent. Grocery stores stock Amazon gift cards.

The downside to this is the annual fee of $95, the upside is that this card comes with a 15,000 point sign up bonus when spend $1,000 within the first three months.

Chase Freedom/Discover it: 5% In Q4

Both of these cards offering 5% rotating categories. In the fourth quarter of last year both of them offered this on amazon purchases – just in time for those Christmas purchases. Chase is set to do the same this year and it looks like Discover will follow suit although they haven’t released their full schedule yet.

Neither card comes with an annual fee. The Freedom currently has a sign up bonus of $100 after $500 in spend (this regularly goes up to $200) and the Discover it has a bonus of $150 after $750 in spend. Both of these cards have a limit of $1,500 that can be spent per quarter.

Chase Ink Plus/Bold/Cash 5x Chase UR Points

Another one of the best credit cards for Amazon purchases is the Chase Ink Plus/Bold/Cash. These are business cards offered by Chase, they all earn 5x Chase UR points on office supply store purchases (which can be redeemed for 1 cent each in statement credit or transferred to airline or hotel partners). Most office supply stores carry amazon gift cards which means you can get 5% back.

SallieMae Rewards Mastercard From Barclaycard: 5% Cash Back

This card is often overlooked, it earns 5% on gas and grocery store purchases (the first $250 you spend each month in both categories) and earns 5% on eligible bookstore purchases. Amazon’s main business used to be selling books (and still is) as such their merchant category code is still a bookstore. This means this card will earn 5% cash back on Amazon.com purchases, there is a limit of $750 per month.

Not all amazon.com purchases will code as a bookstore though, a lot of Amazon market place purchases will not code as a bookstore and as such you won’t earn 5% cash back. There is also a sign up bonus of $25 after your first purchase.

American Express Blue Cash Preferred: 6% Cash Back

This card earns 6% cash back at grocery stores on the first $6,000 every year. I know this is an article is on Amazon purchases, but the work around is easy. Almost all grocery stores stock Amazon gift cards, you simply choose the amount you want and then purchase it. It takes a little bit more work, but for those who frequently shop at Amazon this is well worth it.

The downside is that this card comes with an annual fee of $75. The upside is that there is a sign up bonus of $150 if you spend $1,500 within the first three months.

Get Additional Money Back

You can earn additional savings by pairing your favorite credit card with a cash back portal. These deals regularly change and are generally only for specific (and high margin) categories. The following portals regularly offer cash back deals at amazon. Be sure to read the fine print!

befrugal – up to 6% cash back currently
eBates – up to 3% cash back currently
Fatwallet – up to 3% cash back currently
Mr Rebates – no cash back currently

Will is the editor at doctorofcredit.com. He regular blogs about personal finance and consumer credit issues. Recently he posted a list of the best cash credit card sign up bonuses. Make sure you follow him on twitter to keep abreast of the latest news & deals.

(Photo courtesy of Phillip Stewart)