Getting a credit card when you’re just starting out and you don’t have a credit score can be a huge challenge, even for the most financially responsible consumers. Petal, a new credit card company, seeks to change that by creating a simple, no-fee credit card with high limits and great rates. And most importantly, you don’t need a credit history to become a cardholder.
Petal looks at a candidate’s income and the bills they already pay to determine whether they qualify. The company believes that a candidate should not not be judged solely on a credit score. According to Petal, the current technology used to develop a credit card is extremely outdated and unfairly puts certain groups at a distinct disadvantage. It underestimates the creditworthiness of people who are too young to have a significant borrowing history and it excludes those consumers who have historically lacked financial resources and services. According to Co-Founder and CEO Jason Gross, the current method of determining creditworthiness creates a dilemma: people who don’t have access to credit cannot build a credit history and people who don’t have a credit history cannot get access to credit. Advances in technology allow companies like Petal to develop a more comprehensive score that provides a much better snapshot of a potential credit card user. Instead of using the traditional formula for creditworthiness, Petal has developed a new technology that they call “Cashflow Underwriting” which analyzes an individual’s “digital financial record.” This technology takes into account how much money a person makes, how much they save and spend, and what bills they pay each month.
Petal believes that giving the younger generation access to credit is critical during this time in their life because this is when they need it most, whether to finance their education or to simply achieve financial independence. Giving them access to a credit card will allow responsible individuals to start building up their credit history.
In addition to providing access, Petal improves the entire user experience. The company helps cardholders track how much they spend and what they can afford. They can pay their credit card bill directly from their bank account or they can pay over time. Petal helps users understand, in dollars, how much this will cost, helping cardholders make an informed decision.
Billshark’s mission is to empower consumers and to help people gain control of their financial future. We’re thrilled that Petal created a simple, accessible consumer product that levels the playing field.