Overview

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 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.

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

YesNo