About

Petal offers a credit card service designed to help individuals with little or no credit history build their credit scores. Instead of relying solely on traditional credit scores, Petal evaluates applicants based on their bank data and spending habits, allowing them to extend credit to more people. They provide three types of cards with no annual fees and cash back rewards, along with a program that increases credit lines for responsible users. The goal of Petal is to promote financial inclusion and responsible credit use.

Simplify's Take

What believers are saying

• Petal secured a $200 million debt facility to expand its credit card program.
• Petal's cash flow underwriting aligns with the trend of financial inclusion.
• Petal's mobile-first approach caters to the growing demand for digital services.

What critics are saying

• Petal faces competition from companies like TomoCredit using similar underwriting methods.
• The acquisition by Empower Finance may disrupt Petal's business model.
• Petal's reliance on debt financing could increase financial vulnerability.

What makes Petal unique

• Petal uses cash flow underwriting instead of traditional credit scores.
• Petal offers a user-friendly mobile app for real-time credit tracking.
• Petal provides credit cards with no annual fees and cash back rewards.

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