Petal offers a Visa rewards card to people with little to no credit history. The idea that served as a starting point for the company was to offer younger customers, who often haven’t established credit, a rewards-based card.
Instead of using a traditional FICO score, it uses other data and metrics to assess whether or not someone can repay the loans. Companies like Square, Stripe, and PayPal are leaning on similar tactics to underwrite small business loans.
Petal’s financing comes as investors increasingly bet on other credit card startups. Mission Lane, another new credit card company, raised USD 500 billion in debt and equity financing in September 2019.
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