A new premium travel card has launched, but this one has several unique twists.
The Karta card is aimed at international applicants who have assets in U.S. financial institutions. It doesn't require a Social Security number, Individual Tax Identification Number or a U.S. credit history.
The card is currently available only through private banks and brokers who can offer a referral. Among its partners are Bolton Global Capital, XP Investments, ProCapital Financial and Global Wealth Management, according to a news release. Karta's issuing partner is Third National, according to its website.
Like traditional premium credit cards, this one is shiny and expensive: It's made of metal, has a $300 annual fee, and packs benefits like Priority Pass airport lounge access, no foreign transaction fees and modest rewards. But the Karta card comes with wrinkles you won't find elsewhere, including an "automatic Europe tax refund" and customer service that's handled through WhatsApp.
Here’s more about the Karta card.
Karta’s features
Things to know upfront
To qualify for the Karta card, you’ll have to meet certain requirements:
- You’ll need a minimum balance of $50,000 in assets at a U.S. financial institution.
- You must also have an active U.S. bank account, a copy of your passport, a utility bill and a U.S. visa if it was required for entry into the country.
Things to know as a cardholder
- You can get approved for the Karta card in minutes, according to the website, and use it immediately with Apple Pay or Google Pay after approval.
- It’s a charge card, so you can’t carry a balance from month to month, although it does offer a buy now, pay later option. (More on that below.)
- At the moment, it reports payments only to Experian, one of the three major U.S. credit bureaus.
What the card offers
The Karta card has the following features:
- A credit limit of up to $200,000: This is based on your assets under management from your U.S. financial institution.
- A buy now, pay later option: While you can’t carry a balance on the card like you might with a traditional credit card, you can use this card’s buy now, pay later option to buy yourself three months, six months or nine months to pay down a purchase. A fixed finance charge applies that varies depending on the plan.
- Points: The card earns 1 point per $1 spent. Points can be redeemed for statement credit or to pay for preferred airlines and hotels, according to Freddy Juez, Karta's CEO and founder.
- Priority Pass Select airport lounge access: Get access to 1,700 airport lounges around the world. All cardholders get 10 complimentary passes.
- Customer service via WhatsApp: With the WhatsApp concierge, you can get help from an AI agent for card-related tasks and questions. A human is also available to respond to messages if needed, according to Juez.
- An automatic refund on taxes for purchases made in Europe: The refund is credited to your credit card when you take a picture of your receipt and send it to the concierge via WhatsApp.
- Visa Infinite benefits: The card offers baggage delay or loss insurance, price protection, purchase protection, auto rental insurance and more. Terms apply.
Is the annual fee worth it?
An annual fee on a premium credit card can be worth paying if the benefits help you offset that cost. The Karta card can certainly check that box for the right applicants — namely, those who might otherwise be unable to get a credit card in the U.S. because they lack a credit history or Social Security number here.
And in terms of perks, the card's Priority Pass Select access alone might justify the annual fee. If you were to purchase your own Priority Pass membership separately, the plan that offers 10 complimentary visits would cost $329 (as of this writing).
You'll also have the potential for a much higher credit limit than you might normally expect from a traditional credit card, though of course that limit will vary depending on your U.S. assets.
But the Karta card lacks the rich rewards rates and piles of perks you'll find on more traditional premium travel cards, plus you'll want to make sure you're OK with engaging with customer service through WhatsApp.
And if your goal is largely to establish credit, keep in mind that the Karta card reports only to Experian, but not TransUnion or Equifax, the other two major U.S. credit bureaus that compile the information that informs your credit scores. You could do better on that front with a $0-annual-fee card like the Zolve Classic Credit Card, which reports to all three bureaus and is potentially gettable without a Social Security number.
Once you are able to qualify with a Social Security number or ITIN and good credit, you could pursue a traditional premium travel credit card and the more generous rewards and perks that come with it.
