Petal was created to help more people access and build credit using data many of us already have in our personal banking history. With this data, we can evaluate creditworthiness using a more inclusive lens: the CashScore.
Why does a credit score matter?
The strength of a credit score (the traditional measure of creditworthiness) can be the deciding factor when applying for any major line of credit, including a mortgage, car loan, credit card, and more. On top of determining approval, a credit score can also influence the interest rates and repayment terms a lender may offer.
How does a CashScore help?
A CashScore, unlike a credit score, can consider a much wider financial picture using applicants’ banking history. This allows even more people to qualify for credit, including those totally new to credit.
The Petal card program makes money primarily from 3 things.
Interest.
This is the annual percentage rate (APR) members incur if they don't pay their full statement balance each month on time.
Merchant interchange.
In order to accept credit payments, merchants pay a fee on every Petal card transaction.
Card fees.*
Petal 1 members may incur fees on late or returned payments, and cash-like transactions. Petal 1 Rise members may incur fees on late or returned payments, cash-like transactions, and will incur an annual membership fee.
* Card fees and terms may vary for members acquired prior to 5/16/23.
How do you build credit with Petal?
Petal cards are designed to help members financially succeed. We report to the major bureaus so, with responsible credit use and on-time payments, members can grow their credit.
We also want members to learn what it means to use credit responsibly. In the Petal app, members can access budgeting tools, track their credit score, and understand progress toward a limit increase in the Leap program. Terms apply.
Why do some Petal cards charge fees?
We strive to make credit as affordable and accessible as possible. There are times when fees help us to provide access to credit. Petal believes transparency empowers members to do more with their credit and this includes being upfront about our fee structure.
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