Petal Launches No-Fee Credit Card for People without Credit
Petal takes a unique approach to account approval. Instead of using a person’s credit score or credit history, Petal looks at an applicant’s bank account and monthly payments. This determines the credit limit and interest rate for the card.
Petal’s co-founder, Jason Gross, says the company is able to extend higher credit limits to first-time cardholders because of their metrics system. The company boasts credit limits of $500 to $10,000.
Interest rates range from 14.74% to 25.74%. Petal explains the cost of each monthly payment so users understand how much they will be charged if they only pay the minimum. This encourages cardholders to pay off their balances quickly which will help build their credit.
Petal launched earlier this year to a trial group, but is now available to all applicants. Interested customers can apply for a Petal Card online at PetalCard.com.