The credit card for social media influencers
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When Eric Wei and Will Kim decided to create a credit card for creators and influencers, they did so because traditional banks and card issuers were often reluctant to give out credit cards or give credit. credit to influencers.
Many of these Twitch streamers, TikTokers, Substack writers, and Instagrammers had cash on hand, high incomes, and millions of followers. However, many also had bad credit with little or no credit history or income which changed monthly and reportedly came from different sources. This made it difficult for them to qualify for a credit card or for lines of credit from traditional banks or card issuers.
“The only reason we exist is that we see this whole new class of business [who] finding a way to make a living from online content is just plain badly treated by the banks. Not just on credit cards, [but] on mortgages, on accounts, on taxes, on payments… “Wei said.
Introduce the Karat Black Card: a payment card with no annual fee for social media influencers. A charge card is a card that requires you to pay your balance in full each month and does not allow you to roll over your balance. The card, which was introduced in June 2020, already has many popular influencers endorsing and using it, including Twitch chess streamer Alexandra Botez, lifestyle YouTuber Kelly Stamps and YouTube player TheRussianBadger.
Karat Black Card eligibility
When you apply for the card, Karat not only evaluates financial data that a bank or traditional issuer would look at, like your cash on hand and income, but it also examines your social media stats. Depending on what platform you are on, they will look at different types of data. If you’re a YouTuber, they’ll look at subscribers and ad sharing revenue. If you’re an Instagram influencer, they’ll be looking at followers, engagement rates, and referral offers.
While Wei was unable to share specific approval criteria, he says there is a general number of subscribers that Karat reviews for applicants. YouTubers generally need to have at least 100,000 subscribers; Instagrammers must have at least 125,000 subscribers; and TikTokers is expected to have 2.5 million subscribers. Wei estimates that the average cardholder has an annual income of over $ 500,000.
Lenny Rachitsky, a Substack writer with 68,000 subscribers who covers the workplace, had applied for the card because of his growing newsletter business. After being initially rejected for the Brex Card, a card for small business and start-up owners, a friend recommended the Karat Black Card to him. He applied and was approved.
“They [traditional banks] don’t look at the audience value, the growth potential and the unique way these people’s business operates, ”Rachitsky said.
Earn rewards with the Karat Black Card
The card has been designed to be customizable according to the needs of the creator who uses it. There is no defined reward system. Instead, creators determine which three spending categories are the highest for them and receive between 3% and 5% cash back in those categories.
Wei explains that a travel blogger might prioritize spending on food and flights, while a YouTube player might spend more on computer equipment and technology. The card also comes with a welcome offer of $ 250 which is received in the form of statement credit for any future purchase.
The conditions and conditions for applying the Karat Black Card are shrouded in mystery. You will need to apply to be on the waiting list, the approval conditions are not set in stone and you will only know the card conditions once you have applied.
So far, Karat has cornered a part of the market that has often been misunderstood and unrecognized by banks and card issuers.
“The designer economy is booming, there are millions of creators generating billions of dollars in revenue, this is an underserved type of business, [and] we get them, ”Wei said.
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