NEW YORK—Petal, a fintech looking to provide credit cards to Millennials and others who lack a credit history, has raised $13 million.
The funds will be used to roll out the Petal Visa credit card nationwide. The card is currently only available via a waitlist, and has already attracted 40,000 people, Forbes reported.
“Petal is among a new crop of companies that are roping in non-traditional data in their underwriting to approve Millennials, immigrants and other consumers who are typically turned away from banks and lenders because of their limited credit histories,” Forbes stated.
Petal relies on a potential borrower's cash flow: How much money they make, how much they spend on rent, bills, groceries and other things and how much they save. The company gathers the information by requesting access to a person's bank account. It also considers a person's credit score and history when available, Forbes explained.
The Petal credit card offers interest rates between 13.99% on 24.99% on credit limits ranging from $500 to $10,000. It also touts zero fees.