Whether you need to repair credit that’s less than perfect or build credit from scratch, Petal can help you make progress toward your financial goal. The Petal® 1 No Annual Fee Visa® Credit Card, released in October 2020, helps people with less-than-stellar credit rebuild their credit history. There’s also the Petal® 2 Cash Back, No Fees Visa® Credit Card, which is a rebranded version of the original and is aimed at applicants with somewhat better credit scores than the Petal 1 Credit Card. Both cards are issued by WebBank.
The Petal cards differ from competing credit cards designed for those with limited or no credit history by using a “Cash Score” in determining eligibility for applicants. This score is derived through analysis of banking and bill payment patterns, rather than relying on traditional credit scores to determine creditworthiness. For example, applicants link a bank account, which is then fed into an algorithm to review banking transaction history, money earned and money spent each month, as well as bills paid.
Plus, you can check before applying to see if you’re preapproved for a Petal card, which won’t impact your credit score. However, you will be asked for your Social Security number, annual income and housing costs, and other personal information, including your phone number, employment status and income.
Finally, while many cards meant to help consumers establish or repair credit are secured (requiring a deposit be paid to the issuer), the Petal cards are unsecured. If you’re looking to build credit but don’t want to tie up money in a security deposit, Petal may be the right choice for you.