Hey PH — this is Jason, Co-Founder and CEO of Petal. We’re launching our company publicly this week and I’m excited to share with you what we’ve been working on for the last two years.
———
First, some background: today, millions of people don’t have access to affordable, high quality credit, simply because they haven’t had credit in the past. For the most part, this affects younger and new-to-credit consumers, and disproportionately minorities, immigrants, and people with low-to-moderate income.
Our team experienced this credit access problem first-hand. Despite working and paying bills on time, many of us had trouble qualifying for a decent credit card out of college and establishing credit history. Others on our team have struggled with credit card debt and fees, and know how difficult traditional credit cards are to understand and manage.
We knew there was a problem here and wanted to be part of the solution, so we created Petal — a simple, no-fee credit card, designed to make life easier.
Here are a few of the things that make Petal different:
• We’ve developed new technology that allows us to assess creditworthiness without relying on a credit score. We use machine learning models to analyze things that don’t factor into a credit score today, like income trends, expenses and cashflows. This allows us to provide higher credit limits and better rates than competing cards, even to customers who don’t yet have a credit history.
• We are the first credit card that charges absolutely no fees. No annual fee, international fee, overdraft fee, over-limit fee or late fee.
• Petal provides a beautifully re-designed digital experience that makes it easier than ever to manage your money and radically more transparent.
———
There’s plenty more info on our site, and I’ve also written a more in-depth Medium post on why we created Petal if you want to check it out.
Thanks for taking a look! I’d love your feedback and I’m happy to answer any questions.
@jasonbgross Given the Equifax disaster - what inputs are going into calculating the credit score equivalent? "Income trends, expenses, and cashflows" - do you plug into my bank account and run models against that? Transparency is probably going to be a key differentiator in a post-big-three-credit-score world.
@garytokman We were hunted by @yottoy (TY!) when we launched our website and were covered in the press this morning. We're planning to ship our first Petal cards to beta users in just a few weeks and will be letting users in off of the list soon.
Hey @shloky, the Equifax breach is terrible. Credit bureaus are middle-men for your financial data, and they're notoriously unreliable. You’re exactly right about how Petal works—we plug directly into your digital financial record, and give you credit for all of the information that the bureaus miss: like the money you make and the bills you pay each month. Our model analyzes cash flows and your ability to meet month-to-month financial obligations. We believe this direct relationship is the future of credit scoring, and a potential solution to problems with data security and credit access.
This looks awesome if need a credit card and can't get one. I was just wondering what the business model is when it seems you have "absolutely no fees".
@pietervanmill Hey Pieter—great question. We want to make sure our customers know exactly how we make money, and exactly what it costs to use credit, so they can do so safely and responsibly.
Traditional credit cards make money in three ways: customer fees, merchant fees and interest. Because we don't charge customer fees, Petal makes money through merchant fees collected when the card is swiped and the interest from carrying a balance. And before customers carry a balance, we show them exactly what it will cost — in dollars, not just in interest rates and APRs.
@pietervanmill@jasonbgross Since some people seem to think "no fees" means free, "Petal has a variable APR of 17.99% to 24.99%." If you're looking for a new card, just like anything else, shop around. 18+% is a subprime rate and the card has no rewards. If you have subprime or no credit, this card is possibly a good fit, but otherwise you're likely to get a better deal elsewhere. Not a knock on the product, just want to make sure people aren't making bad financial decision because of a good design.
Looks good if you need to build credit for your first credit card, but after that there are plenty of no-fee credit cards out there that give 1–2% cash back. Plus even if you don't have good credit you can usually get a secured credit card (and still get the perks) and after about 6 months get switched to a regular one if you maintain good credit practices.
Credit card rewards are pretty dumb, but if you don't get them you're just missing out.
FAQs have the question, "Does Petal have perks or rewards?" and the answer is just, "We believe that traditional credit card rewards can be confusing and hard to use, and sometimes encourage overspending. We want to make sure that Petal benefits actually make your life easier."
Which doesn't really answer the question, now does it?
@shimmb Thanks for the comment Simon! We agree that credit card rewards can use improvement. We’re working on some awesome benefits that are simple and honest, and are excited to share those details soon. If you have ideas for rewards or benefits you’d like to see in a next-generation credit card, let us know!
@shimmb@jasonbgross I'm really looking forward to seeing what the future holds for you guys. If all pans out as promised, should be a pretty revolutionary card from many standpoints. Let's not forget that the card looks awesome :) major points for that.
Just moved to SF from Canada and I've spent the past month and a half struggling to get my finances setup. I don't have a credit history and my Canadian bank doesn't provide a decent cross border account so I have to start completely from scratch. Even though I make a decent salary I've been rejected by Simple, Chime, Final, Capital One, and Chase, all because I don't have an American credit score. If this service works as advertised it will be one of the most useful and timely services I will have used in my life.
Pros:
No credit score required is a life saver for building credit
The topic of moving is very painful for me, because I have been moving all my life and I know that you need a lot of money for such things. My finances are tight right now, so I decided to seek the help of a bank and get a credit card, and I have never regretted it! A smart system , a smart cashback, and even bonuses on top! Damn, I would have known earlier!
@tristajaye You might want to check our Philippine market where credit card penetration is low. Most can't get their hands on with Credit card due to slow and tedious process of cc providers.
Full disclosure: I work at Petal, and I work here because I think this is an awesome product, especially for people new to credit, recent immigrants, and first time credit card owners.
VERY excited to be unshackled from the tyranny of my bank's incessant demands that I keep "feed"ing my credit card every. single. month!! Not sure how this business model pans out, but sign me up!
https://photos.app.goo.gl/Yb63Nz...
How are you guys doing KYC? Are you using possibly leaked credit data to verify people or something like Cognito?
And with whom am I building credit with exactly? Let's say I sign up for Petal and make all of my payments on time, is that information shared with the bureaus and reflected on my core credit profile?
@xgarland Hi there--We do digital identity verification and KYC using Socure (a service similar to Cognito).
Using Petal responsibly can help improve your traditional credit score over time.
We're partnering with Experian for credit reporting today and have plans to report to the other credit bureaus as well, although we are monitoring recent events to ensure our customers' data is safe.
"Pay your full bill each month straight from your bank account and never pay a dime in interest." - Finally, a credit card that does not urge you to create debt for yourself. Looking forward to your EU launch.
They say they are better than the rest, but turned me down for their card. Checked my account and pulled my credit. Said I dont have cash flow and my credit wasnt good enough. My account shows a cash flow of 7000 and my credit score is close to 700. Different? Really? I'll stick with capital one.
During the application process, there was an error and the site was unable to pull information from my credit union. I was automatically rejected due to the fact that my "cash flow information is insufficient." I tried multiple times to get help over the phone, explaining to them that I was rejected due to a failure on their end because there was an error in retrieving information from my bank. Unforunately, it was difficult to communicate this to them because none of the representatives were fluent in English, and they were very rude as well. I was instructed to email them, and after several days, I finally received an email that stated I was not eligible to reapply because I was already rejected. I explained the situation again, and I was told that I cannot reapply regardless. I am extremely unhappy with this company's shortcomings and horrible customer service. Don't waste your time like I did.
This is not about the credit card. Its about the whole finance industry. Machine Learning can predict credit worthiness than the legacy systems. The idea can be used across multiple sectors.
Question: Does anyone know what tool they are using for managing the waiting list ?
Thanks in advance.
@aakash_barot We agree Aakash--great minds! There’s a ton of work to be done in financial services, and we believe machine learning and mobile technology will have major roles to play. We’re so excited to be part of it.
We’re using viral-loops.com to manage our waitlist. The team has been great to work with. 👍👍
Replies
Petal
Petal
Candle
Petal
Petal
Petal
SeekWell
Petal
Petal
Loops
Petal
Just moved to SF from Canada and I've spent the past month and a half struggling to get my finances setup. I don't have a credit history and my Canadian bank doesn't provide a decent cross border account so I have to start completely from scratch. Even though I make a decent salary I've been rejected by Simple, Chime, Final, Capital One, and Chase, all because I don't have an American credit score. If this service works as advertised it will be one of the most useful and timely services I will have used in my life.
Pros:No credit score required is a life saver for building credit
Cons:Make it faster to get started maybe?
Petal
Petal
Cover
Look forward to swiping with Petal!
Pros:Transparent credit process that rewards responsible people and doesn't rely on esoteric FICO
Cons:Haven't used the beta yet...excited to test it out though
Petal
Full disclosure: I work at Petal, and I work here because I think this is an awesome product, especially for people new to credit, recent immigrants, and first time credit card owners.
Pros:simple UI, low APR, and no fees
Cons:rewards (coming in a while!)
Sivo
Moonshot OKR Notion Template
Fixing everything that is wrong with credit cards today!
Pros:Exactly what the world needs
Cons:Too early to tell
Petal
Petal
They say they are better than the rest, but turned me down for their card. Checked my account and pulled my credit. Said I dont have cash flow and my credit wasnt good enough. My account shows a cash flow of 7000 and my credit score is close to 700. Different? Really? I'll stick with capital one.
Pros:Nice
Cons:Not different
Future Investor
Petal
Teamstack
Petal