5 Things to Know About the Karat Card

If you make money as a content creator, odds are your parents don’t totally understand what you do for a living. But traditional banks might not either, and that can get in the way of accessing financial services for your business.

Karat, a financial technology company, aims to meet these entrepreneurs where they are. It provides a variety of services for creators on platforms such as YouTube, TikTok and Twitch.

This includes the $0-annual-fee Karat Card. Issued by Cross River Bank, the card offers a credit limit based on what counts as success for creators, which is different from other types of small businesses.

Here are five things to know about the Karat Card.

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.

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:

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 (categories include groceries, bills and utilities, health and beauty, gas, entertainment, dining and nightlife, transportation and travel). Earn 1% cash back on all other purchases. There’s no need to select categories twice a year; you simply earn more where you spend the most.

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, which Karat’s co-founders say is a way for a creator to test out an idea for a new podcast without having to invest in their own equipment first.

Perhaps the most unusual perk of all is the ability to redeem rewards for a spot on Karat’s billboard in Times Square. While your face won’t be up there for long, that’s not the point. Creators are told exactly when their time slot will be, and they often fly up to New York to take photos in front of their billboard to post to social media.

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.

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.