5 Things to Know About the Karat Card - NerdWallet

5 Things to Know About the Karat Card

Designed for content creators, it offers a credit limit based on your social media following.

1. Your social media following matters

Karat looks at your social media following, as well as financial information like revenue and cash flow, when determining your eligibility for the card and what credit limit you’d be granted. According to Karat’s co-founders, the average Karat cardholder has 2 million social media followers, and is making $300,000 in revenue per year.

You may be able to get a credit limit increase later on, as your following and revenue grow. Karat reports payment history to Experian and TransUnion (two of the three main credit bureaus), which can help establish credit.

2. It earns rewards you can customize

You can earn 1, 2 or 3 points per dollar spent in categories you choose, and you determine how much you earn in your chosen categories. You can also change them every six months. Categories are intended to match typical business purchases for a wide variety of creators, including:

NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account the type of card being reviewed (such as cash back, travel or balance transfer) and the card's rates, fees, rewards and other features.

While these categories can certainly be useful for content creators, just be aware that the Karat Card isn't the only card that offers a customizable rewards program, and depending on where you do most of your spending, those cards may be better fits for you.

For example, while it's not a business card, the $0-annual-fee Venmo Credit Card also lets you customize your earnings. You'll earn 3% cash back in your top eligible spending category for the month, and 2% back in your second-highest category.

3. Redeem rewards in creative ways

You can redeem points for cash back, in the form of a statement credit, at a value of 1 cent per point. But the Karat Card also offers redemption options that provide opportunities for creators to make more content. Point values vary based on what you choose.

You can cash in points for Karat merch, which creators wear in photos and videos as a subtle cross-promotion. Another option is using rewards to book time in a podcast studio. Perhaps the most unusual perk of all is the ability to redeem rewards for a spot on Karat’s billboard in Times Square.

4. There are no fees

The Karat Card is a charge card, which means you must pay your bill in full each month. That also means the card doesn’t charge interest, because you can’t carry a balance.

There’s also no annual fee, late fee or foreign transaction fee.

5. It offers a concierge service

Cardholders can get help from Karat’s concierge service between 6 a.m. and 11 p.m. Pacific time, either on Karat’s website or via text. Concierges can assist with tasks like changing your reward spending categories, or helping you if you notice suspicious activity on your card.