Petal, a credit card company that lets users gain access based on their bank accounts has been making its rounds in the Fintech sector. Created by founders Jason Gross and Andrew Ellicot, the company has gained an $800 million valuation after it’s latest series round initiated by Tarsadia Investments. The company specializes in the credit alternative market, where most of their clients have been previously denied by traditional banking institutions either due to low scoring or other standard approval factors.
The card works by evaluating borrowers’ cash score which is determined by their banking history such as amount of deposits, NSF’s, or length of account, among other variables. The company then gives users a worthiness score to provide the best card for their financial needs. Some features of the card include a wide range APR of up to 29%, generous spending limits, and no annual fee. Users can also increase their limits with six months of on-time payments and responsible usage. So far, the company which comes with a mobile application, boasts more than 300,000 users. As their popularity grows they are likely to reach full unicorn status by the end of the year.
