About

Petal provides a credit card service aimed at helping individuals, particularly those with limited or no credit history, to build their credit scores. The service evaluates applicants not just on traditional credit scores, but also on their bank data, spending, and saving habits, allowing more people to qualify for credit. Petal offers three types of credit cards with no annual fees and rewards that provide cash back ranging from 2% to 10% at select merchants. Additionally, the "Leap" program enables cardholders to increase their credit line after six months of on-time payments. Petal generates revenue through interest on carried balances and transaction fees from merchants. The accompanying mobile app allows users to monitor their credit scores, track transactions, and make payments conveniently. Petal's goal is to promote financial inclusion and responsible credit use by providing accessible credit options.

Simplify's Take

What believers are saying

• Petal secured a $200 million debt facility to expand its credit card program.
• Petal's acquisition by Empower Finance highlights its strategic value in fintech.
• Petal's focus on financial inclusion aligns with growing consumer demand.

What critics are saying

• Petal faces increased competition from companies like TomoCredit.
• Petal's financial struggles may affect customer trust and investor confidence.
• Spinning off Prism Data could lead to a loss of valuable data insights.

What makes Petal unique

• Petal uses cash flow underwriting instead of traditional credit scores.
• Petal offers three types of credit cards with no annual fees.
• Petal's mobile app provides real-time transaction tracking and credit score monitoring.

Help us improve and share your feedback! Did you find this helpful?

YesNo