It is often the case that when developing and making money on, for example, a YouTube channel, creators forget to take care of their credit history and FICO score which are very important for getting approved for credit products. Therefore, a creator may have great revenue and scores of employees but be not in good standing with banks.
A new startup project named Karat is trying to solve this issue. Its main goal is to make a credit card specially designed for creators working with social media platforms like Instagram, YouTube, Twitch, and TikTok to cover their business-related expenses. And here it is – the Karat Black Card.
The new card is promoted as a “card based on your social stats”. To apply for it, you do not need to indicate your SSN. Your credit reports won’t be checked as well. At Karat, they will check your revenue, “business savvy”, and the performance of the online account you run instead. For instance, if you work with Instagram, such metrics as follower count, engagement, and sponsorship deals will be taken into account first. For YouTubers, this is subscriber count and ad share revenue; for Twitch creators – subs, donations, and brand deals; for TikTokers – followers, hearts, and views.
Lucky owners of the Karat card are supposed to get a metal card branded with their logo, no fees or interest, 2%-5% cash back rewards on chosen categories based on their follower count, a $250 bonus on future purchases of electronics or equipment, and other perks. The card can be used anywhere Visa is accepted. But note that the Karat Black Card is a charge card, which means that you must pay off your balance each month.
By now, the company has already offered the card to selected creators. Everyone else is invited to share their email at the Karat website or send a direct message to Karat Instagram to join the waitlist. Priority will be given to full-time creators having 100K+ verified followers.
