GREENWOOD VILLAGE, Colo.—Empower Finance is buying Petal, the credit card issuer that originally made headlines by promising to help customers build their credit inexpensively—yet ended up downgrading some of those same customers to cards charging numerous fees, according to a new report.
“When it launched in 2016, Petal credit card company touted itself as an affordable way to access credit for anyone with a less-than-stellar credit history,” Cnet reported.
Its approval process used alternative data like banking information instead of just credit scores and credit history.
The Offer
“And unlike some credit-builder cards, Petal doesn’t charge a security deposit,” Cnet stated. “Plus, you could earn 1% to 10% in cash back, depending on the card you were approved for, a rarity for a credit-builder card with no annual fee. But the company stumbled amid financial woes with users reporting issues that included some customers being downgraded to a version of the card that charged an annual fee.”
The card continues to promote itself as a means for building credit in a “modern world.’ More information is here.
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