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Is the National Debt Relief Program Legit? The Honest Answer

By Joe

National Debt Relief

If your debt is stressing you out, you’re not alone. According to Forbes, 54% of Americans are stressed about their debt. And, if you’re in this boat, you may have come across National Debt Relief – which sounds almost like a way to eliminate debt altogether. 

As with any offer that affects your finances, you need to know whether this is a legitimate offer before you sign up. So, I’m going to share everything I know. We’ll look at what National Debt Relief is, what they can do for you, and the services they offer. By the end, you should know if this is the right offer for you. 

This is what’s in store: 

  • What is National Debt Relief?
    • Where Does National Debt Relief Operate?
    • How Does National Debt Relief Work?
    • How Much Does National Debt Relief Get Paid?
    • Company Overview
  • What Does National Debt Relief Do?
    • 1. Free Consultation
    • 2. Personalized Debt Relief Plan
    • 3. Credit Counseling & Education
    • 4. Debt Negotiation With Creditors
    • 5. Debt Consolidation Loans
    • 6. Bankruptcy Referrals
  • Frequently Asked Questions
  • Conclusion: Is National Debt Relief Legit?

Now, let’s set sail! 

What is National Debt Relief? 

National Debt Relief reviews

National Debt Relief is a company that helps people tackle their debt through various debt relief services. 

Depending on your situation, services might include: 

  • Negotiation with creditors
  • Debt consolidation loans
  • Credit counseling services
  • Bankruptcy referrals 

They provide a free consultation where you can discuss your financial situation and explore your options…allegedly without any obligation. 

While they don’t offer tax debt relief or any government loans, they cover nearly every other type of debt you can think of. 

National Debt Relief commercial

This includes relief from: 

  • Credit card debt
  • Personal loans
  • Bad credit debt
  • Medical debt
  • Unemployment debt
  • Retirement debt
  • Veteran debt
  • Business debt
  • Private student loans
  • Marital debt (wedding or divorce) 

Ultimately, National Debt Relief aims to help you become debt-free within a reasonable timeframe, typically within 24-48 months. They emphasize affordability and customization, ensuring that their solutions align with your budget and financial goals.

Recommended: Credit Secrets Book Review: Can You Erase Bad Credit History? 

Where Does National Debt Relief Operate? 

National Debt Relief New Hampshire

As of March, 2024, and despite what the brand’s name implies, National Debt Relief doesn’t operate in all 50 states (I wouldn’t have known this if I didn’t call in to ask a few questions about pricing). When I asked which states they do operate in, the rep advised that I do a search for debt relief specifically in my state so I didn’t get a straight answer…not right away. 

So, after the call, I put my research cap back on and checked with the Nationwide Multistate Licensing System. I found that National Debt Relief holds 14 state licenses in 13 states. 

I can verify that they do legally operate in: 

  1. Arizona
  2. California
  3. Idaho
  4. Illinois
  5. Iowa
  6. Maryland
  7. Minnesota
  8. Nevada
  9. New Hampshire
  10. North Dakota
  11. Pennsylvania
  12. Rhode Island
  13. Tennessee

And, in Illinois, Iowa, Maryland, Minnesota, New Hampshire, Pennsylvania, and Rhode Island, the company actively holds debt-specific licensing. 

While you can apply for a consultation regardless of your location, you may be limited in the scope of services offered if you live outside of the states where they maintain licensure.

How Does National Debt Relief Work? 

National debt relief actor

At first glance, it may seem like you’ll sign up to have your debt reduced without any work. But, that is not how these programs work. 

So, here’s how national debt relief really works…

…First of all, their approach starts with a personalized debt relief plan tailored to your unique circumstances. 

This might include negotiating with creditors to reduce the amount you owe and setting up a dedicated savings account where you make monthly deposits. These funds are then used to pay off your creditors at the negotiated reduced amounts.

Some participants might be offered a debt consolidation loan. The idea is that you would consolidate your high-interest debts into a new loan with a lower interest rate and pay less over time. 

While the company boasts that you can be back to financial freedom and living your life within 24-48 months, that doesn’t mean you will be out of debt within 4 years. For example, a consolidation loan might take 7 years to pay off, but your payments or interest would hopefully be lowered. 

There’s even a chance you’ll be referred to a bankruptcy attorney. In this case, some or all of your debt may be wiped out, but this could have a negative impact on your credit score for several years. 

Keep in mind, debt relief is not the same as credit repair, and may have a negative impact on your credit score (many so-called credit repair programs can have a negative impact on your credit as well). And, you will need at least $7.5K in debt to qualify for their services. 

You might also like: Superior Tradelines Review: Is it a Scam or Legit Way to Build Credit? 

How Much Does National Debt Relief Get Paid? 

National Debt Relief Illinois

National Debt Relief charges a fee for their services, which is typically based on a percentage of the enrolled debt. This fee can vary depending on factors such as the state you reside in and the total amount of debt you owe.

On average, the fee usually falls within the range of 15% to 25% of the total enrolled debt. For example, if you enroll $10,000 in debt and the fee is 20%, then the fee would amount to $2,000.

Now, when I called in and asked specifics about the costs, the rep that I spoke with only disclosed that the fee is “built-in” to the plan and no services are rendered until all fees are agreed to.

So, if you make it to the proposal stage, do your own math before you sign up — Make sure that the amount you pay will in-fact be less than the interest and principal you would otherwise pay on your debts. And, keep in mind that debt settlement often has a negative impact on your credit report, and negative marks can remain for up to seven years.

It’s important to note that National Debt Relief operates on a performance-based fee structure – This means they are only supposed to collect their fee after they successfully negotiate a settlement with your creditors. Again, you will have the chance to approve the cost and the savings. 

You might also like: A Credit Stacking Breakdown: What it is & How it Works 

Company Overview

National debt relief, 180 maiden ln 30th floor, new york, ny 10038

National Debt Relief LLC is a New York-based company that was founded in 2009 by Alex Kleyner, Daniel Tilipman, Tom Leydiker. Kleyner is the current CEO, where he’s been full-time for the past 15+ years. 

Prior to launching the company, Kleyner received a Bachelor’s degree from Pace University

Alex Kleyner national debt relief

Tilipman remains on National Debt Relief’s executive board, and went on to found Reach Financial — a debt consolidation loan provider  — in 2022. This makes me wonder if National Debt Relief offers consolidation loans in partnership with Reach. 

Leydiker is also still with the company. Before co-founding the company, he was a branch manager at Citibank and President and CEO of Continental Funding, LLC. 

The leadership seems strong, especially considering that most employees (according to Glassdoor) would recommend the company to a friend in need of a job. What staff thinks of a company speaks volumes, and 75% of National Debt Relief’s Workers approve of the CEO. 

National debt relief Glassdoor

With that said, you also have to look at what clients think of a company before you can really judge. Like all financial offers, National Debt Relief gets mixed reviews. 

They are A+ rated and accredited with the Better Business Bureau (BBB), but this is despite 124 complaints in the past year. Still, 3,385 customers give them a 4.73-star rating. I do like these numbers. 

National debt relief reviews bbb

National Debt Relief is rated nearly as high on Trustpilot (4.7 stars) and platform reviewers are mostly very satisfied with the services they receive. 

National debt relief screwed me

Plus, even Redditors have generally objective opinions about the company – they are typically the toughest crowd on the internet to impress. 

National Debt Relief Reddit

Note that some anonymous commenters do recommend you side-step these guys and go straight to a government agency or attorney for your own protection (which are definitely avenues worth exploring). 

Now, there is a new class action lawsuit against National Debt Relief that claims they collect users’ IP addresses without consent – note, this has nothing to do with the way they handle clients’ finances. And, keep in mind, the jury is still out…literally. 

National debt relief class action lawsuit

Before you decide if this is the offer for you, find out exactly what National Debt Relief can do to help provide relief from debt. 

You might also like: 41 Companies That Help Build Business Credit [Beyond Net 30 Vendors] 

What Does National Debt Relief Do? 

Some of National Debt Relief’s services are offered in-house and other advertised relief solutions are made by referral. Now, I didn’t see any affiliate links or affiliate disclosures on their site – this could mean that they will refer you out to someone without earning any commission, but I can’t be sure. 

Here’s what you might expect if you sign up. 

You might also like: No-Doc Business Loans: Get Funds Without Proof of Income 

1. Free Consultation 

National debt relief login portal

If you reach out and apply for services from National Debt Relief, the first thing you can expect is a call from a rep who will listen to your situation, ask questions and start to formulate a plan. 

At this stage, I only recommend you watch out for high-pressure sales tactics. This is always a bad sign. But, a phone call is a low-risk way to explore whether an offer is going to be a good fit for you. Your mantra for any sales call should be, “I’m in the driver’s seat.” 

2. Personalized Debt Relief Plan 

How to cancel national debt relief

National Debt Relief will need to know about all of your debts before they can make a recommendation on how to tackle them.  

So, list out all of your debts: 

  • Credit cards
  • Lines of credit
  • Personal loans
  • Medical bills
  • Collections
  • Repossessions
  • Student loans
  • Business debts

And, be prepared to let the rep take some time to come up with a tailored plan. 

3. Credit Counseling & Education 

National debt relief email

Credit counseling might be beneficial if you are able to make monthly payments, but struggle with debt management. It’s ideal if you’re seeking a structured plan to handle debt effectively, negotiate lower interest rates, and consolidate payments. 

Additionally, counseling offers valuable financial education on budgeting and responsible credit use. Credit counseling might be suitable if you want to avoid bankruptcy and are willing to actively participate in the counseling process to achieve financial stability.

In addition to the counseling services they offer, National Debt Relief offers quite a few educational resources – primarily a comprehensive blog that discusses all matters debt, lifestyle, and financial wellness-related. If you want to learn about debt consolidation, or bankruptcy, their blog is full of useful information. 

Plus, their articles are laid out in a way that’s simple to navigate and written in an easy-to-understand tone.  

Moreover, they have quite a few calculators to help you figure out your situation. 

National debt relief cancellation form

Calculators include accelerated debt payoff, consolidation loan investment, cost of debt, credit card minimum payment, and more. 

If you decide to take a DIY approach, or even if you choose another service, I do recommend you peek in at National Debt Relief’s resources. They share most of the basics of debt and finances – And, I think this is a great knowledge base for anyone looking to sharpen their debt and financial wellness chops. 

4. Debt Negotiation With Creditors 

National debt relief scholarship

Debt negotiation, or debt settlement, might be a good fit if you have significant unsecured debt you can’t fully repay – this could be due to financial hardship like job loss or medical emergencies. It’s suitable for those unable to qualify for consolidation loans or facing collections or legal action. 

Debt negotiation provides an alternative to bankruptcy, helping stop collection calls and lawsuits by reaching settlements with creditors. However, it’s not ideal for everyone, and careful evaluation of your financial situation is essential before pursuing this option. 

5. Debt Consolidation Loans

National debt relief bbb consolidation loans

Debt consolidation can be a suitable option if you have multiple debts, such as credit card balances, personal loans, or medical bills…and are looking for a more manageable way to repay them. It might be beneficial if you want to streamline your debt by combining multiple payments into a single monthly payment (usually at a lower interest rate). 

This type of debt relief can help you simplify your finances and potentially save money on interest payments over time. And, it’s a good fit if you have a steady income and can afford to make consistent monthly payments towards your consolidated debt. 

6. Bankruptcy Referrals 

National debt relief vs bankruptcy

Bankruptcy might be a viable option if you’re facing overwhelming debt that you cannot repay, even with debt management strategies like credit counseling or debt negotiation. It might also be good if you’re experiencing severe financial hardship, such as job loss, medical expenses, or divorce. Sometimes, these situations can make it impossible to meet debt obligations. 

Bankruptcy provides a legal process for individuals to eliminate or restructure debts and obtain a fresh financial start. It may also be appropriate if you’re at risk of foreclosure or wage garnishment. However, bankruptcy has long-term consequences, including a negative impact on your credit score and potential loss of assets. So, it’s essential to carefully consider the decision and seek legal advice before filing.

You might also like: Cred AI Review: Are You Really Better Than Your Bank? 

Frequently Asked Questions

Can you cancel National Debt Relief? 

Yes, you can cancel your enrollment with National Debt Relief at any time. They understand that circumstances may change, and you have the right to discontinue their services if you wish.

How can you cancel National Debt Relief? 

To cancel National Debt Relief, you can contact their customer service team either by phone or email. They will guide you through the cancellation process and provide any necessary documentation or instructions.

Do I get my money back if I cancel National Debt Relief? 

If you cancel National Debt Relief, you may be entitled to a refund of funds you’ve deposited into your dedicated savings/escrow account, minus any fees earned for services rendered up to that point. The specific refund policy may vary depending on the terms outlined in your agreement.

Does National Debt Relief hurt your credit? 

When you stop making payments to creditors and enter into negotiations for debt settlement, it can be reflected on your credit report. The long-term effects of debt settlement on your credit score can vary depending on your circumstances. Discuss the potential impact with a legal and financial professional and consider all your options before enrolling.

Conclusion: Is National Debt Relief Legit? 

The percentage-based pricing model seems higher than what you might expect from a debt relief program. If you paid a separate credit repair company to clean up your report for, say, $170 per month, the cost could add up fast. But, if you save 25% off your debt, and National Debt Relief charges you 20% of your enrolled debt to do it, is it really worth it? 

In the case that you’ll save 50%, a 25% fee might make sense. Be sure to read the fine print before you make any commitments.  I don’t know whether National Debt Relief charges before or after debt is negotiated, which could vary on a case-by-case basis.

If you’ve got a lot of collections that you want to clear up or negative items you need removed from your report, a credit repair company, an attorney, or a DIY approach might be cheaper alternatives. 

In all, though, I like this offer. The company seems to be legit, they’ve been in business long enough to be reputable, and the BBB likes them. Other than the potential expense, I don’t see any glaring red flags that would make me tell you to run for the hills. 

My only advice is to do your research. Learn about all of your options before you apply for relief from debt. And, if you don’t have at least $7.5K in debt, you will need to look elsewhere. Good luck on your journey to financial freedom.  

Do you want to learn how to obtain up to $100K in business credit that won’t impact your personal credit, in as few as 30 days? If so, join Business Credit Workshop today!

They Do What?! Is the X1 Card Just a Bunch of Hype or True Innovation? 

By Joe

x1 card review

Over a year ago, I first planned to share an X1 Card review with readers. The name has been getting a ton of hype. For a while there, it left us all wondering, ‘When will X1 be available?’ Well, it’s official; as of last season, the offer has launched and you can now apply. 

So, here’s what I know about the novel credit card offer from X1 — the good, bad, and the ugly — use this info to decide if you should apply.

*Note that everything listed here is subject to change by the respective card issuers. Always do your due diligence before you apply for any financial offer. 
  • What is an X1 Visa Credit Card?
  • How is X1 Different From Other Credit Card Offers? And, How is it the Same?
    • The Features & Benefits
      • 1. Pay No Annual Fee
      • 2. Carry a Stainless Steel Card
      • 3. Create Multiple Virtual Cards
      • 4. Add Family Members to Your Account
      • 5. Earn 2X+ Rewards on Every Purchase
      • 6. Get Up to 10X (Non-Taxable) Points for Referrals
      • 7. Leverage an Array of Insurance & Protections
      • 8. Receive Up to 5X Higher Spending Limits
      • 9. Get Approved With An Attainable Credit Score
    • The Drawbacks
      • 1. Not Intended for Business Use
      • 2. Upon Approval, There Will Be a Hard Pull
      • 3. You Might Find Unexpected Limitations
  • X1 Company Overview
  • Frequently Asked Questions
  • Conclusion: Is X1 Really “the Smartest Credit Card Ever Made?”

What is an X1 Visa Credit Card? 

The X1 card is a new, personal Visa credit offer that is intended to extend higher spending limits to those with lower credit scores (and higher incomes). The offer comes with some shiny features beyond that. 

Originally, the X1 card was expected to launch in Winter 2020. As we all know, this was not a great year for new businesses, as there were some significant setbacks. 

When will the X1 card be available?

Well, the X1 card weathered the storm and announced its launch in July 2022, which opened doors for its 500K-person waitlist and the general public. 

Rather than apply, the website calls new visitors to “Order” a card, which may sound gimmicky. However, this is simply a copywriting decision — no tricks here. You will still need to apply. And, while your credit score won’t be the only determining factor, it will play into the decision somewhat. 

How is X1 Different From Other Credit Card Offers? And, How is it the Same?  

In a nutshell, the X1 card is built for people with higher incomes and lower credit scores than traditional credit card offers, and it comes with a range of benefits. 

From virtual cards to rewards and protection, this offer has quite a bit going for it. In some ways it’s different, and in other ways no better than other credit cards. Let’s explore the X1 offer in full so you know all the ups and downs, what’s different and what’s not, before you apply. 

The Features & Benefits

First, let’s take a look at the advantages of becoming an X1 cardholder — there really are quite a few. 

1. Pay No Annual Fee

Annual fees are just the worst (when you don’t spend enough to get your money’s worth) — thankfully, the X1 card doesn’t have any. 

Some favorable X1 reviews have stated that companies with such a “premium-looking” card do not offer zero annual fees, but this isn’t completely true. For example, the Apple Mastercard offers a nice-looking metal card with no annual fee, and there are definitely others out there. 

2. Carry a Stainless Steel Card

It’s amazing how many compliments people get on metal cards when they use them to make in-person purchases. And, the X1 card does offer a lightweight, stainless steel card. If you like the idea of carrying a fancy-looking piece of metal to pay for your purchases, then X1 definitely is an option worth considering.

With that said, the material a card is made from has no impact on your spending limits, your credit score, or your ability to leverage credit. This is a vanity feature (nothing wrong with that). 

3. Create Multiple Virtual Cards

At some point in our lives, we’ve all had a nasty subscription charge that just wouldn’t go away — virtual cards offer a chance to protect yourself from unwanted spending on your credit card account.

Because the X1 offer includes virtual cards, you can start spending before the metal card arrives. If you haven’t used virtual cards before, they can be exceptionally helpful. 

X1 virtual cards

For example, you can create a card for free trial offers so that you aren’t charged a second time if you decide not to continue a subscription or forget to cancel. Or, you can create a single-use card for a one-time purchase like a gift card or other offer from a source you’re not confident about spending with. 

Or, if you lose your card, create a new virtual card, and get instant access to it. 

I’m going to bring up the Apple Mastercard again because they also offer a virtual card — but currently only allow you to create one at a time. And, when you request a second Apple Mastercard, any autopay accounts connected to the preceding card have to be updated. 

Citi’s Double Cash, Diamond Preferred, and Premiere cards offer virtual cards as well, so this isn’t necessarily a breakthrough feature for a personal credit card, but it’s a notable one. 

However, this feature comes with limitations. 

X1 virtual card limitations

It seems as though the longer you have an X1 account, the more virtual cards you will be cleared to create. This isn’t really a big deal, though — in the meantime, you can also use a service like Revolut or DoNotPay to help you out with a similar offer. 

4. Add Family Members to Your Account

With an X1 card account, you can add up to 5 cardholders to earn points with you. And, there are no age restrictions on the 

While this is a benefit to obtaining an X1 card, it’s not a standout feature (but it does outperform Amex). Here’s a breakdown of authorized cardholder limits by issuer. 

How many authorized users can you add to a credit card by issuer?

Furthermore, it’s pretty common to add minor children to a credit card account. When adding a child or other family member to a credit card account, always be sure that they understand how credit works, and you know that you are responsible for payment, no matter who does the spending. 

5. Earn 2X+ Rewards on Every Purchase

There are a plethora of personal rewards credit cards on the market, most of them offering lower rewards than the X1 card. 

All purchases earn at least 2X points per dollar spent. Cardholders that spend $15K or more in one year on their card will level up to 3X points.   

Note that X1 is not the only personal credit card with the equivalent of 2X points on all spending. For example, Wells Fargo Active Cash offers 2%+ cash back on all purchases and Capital One Venture Rewards provides users with 2+ miles per dollar spent. 

With that said, there seem to be some hiccups with points redemption.  

X1 card reward boosts

Rather than simply shop as you normally would with a retailer, you have to use the app to leverage “boosts,” which is what X1 calls their bonus points. I find this to be the case with most credit cards. And, in many cases, you might find better rewards redemption with other cards — it just depends on where you shop.

6. Get Up to 10X (Non-Taxable) Points for Referrals

Like many other credit cards, X1 has a referral program. X1 cardholders who refer a new approved account will receive a “mystery reward multiplier” of 4X, 5X, or 10X for all spending made on the new account in the first 30 days. X1 card referral rewards are non-taxable, originally you could invite up to three friends to apply.

However (this just in), some users have been invited to share unlimited referrals with up to 10x points rewards, which is awesome.

x1 Card Unlimited Referrals
Image source: Redditor u/BreadIsForTheWeak

Most other cards offer a flat rate for referrals, which is typically the equivalent of around $100 per approved account. These bonuses often max out around the equivalent of $500 to $2K per year. And, most of these other referral rewards are considered taxable income. With X1, you could earn more (if the new cardholder you refer is a big spender).  

7. Leverage an Array of Insurance & Protections 

As an X1 cardholder, you’ll have access to quite a few insurance and protection offers. 

X1 insurance and protections

Here’s a breakdown: 

  • Cell phone protection – pay your phone bill or purchase your phone with the credit card and quit paying insurance through your carrier 
  • Trip interruption reimbursement – when you pay for travel with your card, there’s no need to purchase trip protection
  • Purchase security – rest easy knowing your transactions are safeguarded
  • Auto rental collision damage waiver – bypass rental car insurance when you pay with your card
  • Extended warranty protection – prolong the standard manufacturer’s warranty for any item you purchase with your card
  • Return protection – you’re covered for return fees for any item you purchase with your card
  • Zero liability protection – don’t pay out-of-pocket for fraudulent card use
  • Visa Signature concierge service – 24/7 enhanced support through Visa
  • Travel & emergency assistance – get help when you need it — just call the number in your cardholder agreement
  • Roadside dispatch – get a tow, a tire, or a battery delivered when you have problems on the road 

Personally, I love taking advantage of included insurances and protections through my credit card as opposed to purchasing additional insurance through vendors because it’s convenient and it saves money. 

The trick is to make sure you know which cards come with which protections so that you use the right card for relevant purchases — X1 has a well-rounded offer, so you don’t have to worry about that.  

8. Receive Up to 5X Higher Spending Limits

While the X1 card does not claim to guarantee any specific credit limit, they assert that most approved applicants receive a higher credit limit than their current average line. This data was acquired from X1 cardholders on August 22, 2022. 

What’s interesting about this to me is that this advertised benefit used to be, “based on advertised terms as of August 16, 2020, for each of the following cards: Chase Sapphire Preferred®, American Express Blue Cash Preferred®, American Express Amex Everyday® Preferred, Bank of America Premium Rewards®, Citi PremierSM.” 

So, it seems like the company found a way to reach its original goal and verified this through its current cardholders. 

9. Get Approved With An Attainable Credit Score

The key feature of the X1 card that does stand out is that you can claim all of the above benefits and features without a fantastic credit score. This isn’t typical with other credit card offers. With X1, approval is based primarily on current income and future earnings, not a fantastic credit score.  

X1 card trustpilot

Some cardholders claim that they’ve gotten the best interest rate and highest limits out of all other credit cards. Unfortunately, in most of these cases, we don’t know which other cards they have, so it’s impossible to determine if this is as exciting as they claim. 

The Drawbacks

All credit cards come with pros and cons — it’s not fair to tout on about an offer without clearly explaining both. So, here are the potential downsides of the X1 card.

1. Not Intended for Business Use

The X1 program terms clearly state that this card is NOT designed for business use. Several self-employed applicants have complained of not being approved for the card. It seems as though income verification is done via personal bank accounts. For many, this is a drawback. 

X1 card reddit

With that said, for those who aren’t approved, there’s no impact to their credit score, since the x1 underwriting process skips the initial hard pull. So, there’s no considerable risk in applying — but, accepting an offer may be another story.   

2. Upon Approval, There Will Be a Hard Pull

On the X1 credit card website, one of the main selling points is to “See if you’re approved with no impact to your credit score.” However, you always need to read the fine print. 

X1 card requires hard pull after approval

If you scroll down the page or read the program terms & conditions, you’ll realize that accepting an offer from X1 after pre-approval will result in a hard pull. Now, this is normal, but potentially misleading (another copywriting decision).  

3. You Might Find Unexpected Limitations

While the X1 card seems to have partnered with some major tech, fitness, retail, and travel partners (Bose, Patagonia, and Amazon, to name a few). Admittedly, this may be plenty for some people, and it likely comes with added points on select purchases. Sadly, purchases outside the partner network might be hit or miss. 

X1 Card charges declined
Source: https://imgur.com/a/wYAn8hD/

Limitations on purchases and unpredictable transaction approvals have been infuriating for some cardholders. So, I say you should enter without lofty expectations — otherwise, you might be disappointed. 

X1 Company Overview 

When gauging the trustworthiness of a financial offer, it’s important to understand who and what is backing it. So, who is behind the X1 Card?

X1 Inc. was co-founded by Deepak Rao and Siddarth Battra, who both left Twitter in 2017 to start this venture to build “the smartest credit card ever made.” Rao was a product manager and Battra was a software engineer. Also notable, Apple’s previous Head of Credit, Abhi Pabba, has recently gone to join X1 as their new Chief Risk Officer. 

X1 Visa cards are issued by Coastal Community Bank, an FDIC member. To date, X1 has received $47 million in funding from 14 investors, including Global Founders Capital, Spark Capital, and Harrison Metal. 

Frequently Asked Questions

How does the X1 card work?

Visit the X1 website and “order” your card. There will be no hard pull to your credit until after you are approved. Upon approval, you can receive 2+ points on all spending, and refer up to three friends. Manage virtual cards and take advantage of a spectrum of insurance and protections on purchases. 

Approval is based more on income than credit score, which is a novel feature for a personal credit card. 

How does the X1 card verify income?

X1 does a soft credit inquiry to make approval decisions. If additional verification is needed, you will be contacted by the card’s underwriting team to submit proof of income documentation. 

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. 

What are X1 points worth?

As with most credit rewards, X1 points are equal to one cent, but some purchases may offer 1:1.4 rather than 1:1 (in these cases, they’re worth 1.4 cents each). 

How do you redeem X1 points?

You can redeem X1 points directly on in-app purchases when your points balance can cover the full amount. You may also redeem points as cash back on your statement. 

How long is the x1 card invite good for?

The invitation period for an X1 card referral/invitation code is six months. 

Conclusion: Is X1 Really “the Smartest Credit Card Ever Made?” 

Is the X1 card legit? Yeah, I think so! Does it deserve all the fuss? Maybe… especially considering that they’ve managed to pack a ton of features into one credit card offer. For some people in certain situations, it could be a go-to credit card. For others, not so much.  

I feel it’s important to note that, in this article, the focus was on comparing the X1 card to more traditional credit card offers. And, the findings might have been different if we would have looked at it side-by-side next to less conventional offers like the Gemini card or Cred.ai (Who knows, maybe that’s something we’ll add in the future). So, again, do your due diligence before you apply for any card.

The biggest downside, from my perspective, is that X1 doesn’t cater to business owners. Perhaps, in the future, they will offer a business solution. Until then, they do offer features for personal card features that are more akin to existing business credit card offers, so I think it’s worth taking a look at under certain circumstances.

If you’re interested in learning how to obtain up to $100K in business credit in as few as 30 days, join business credit workshop today. 

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