Petal

A simple, no-fee credit card

#5 Product of the WeekSeptember 08, 2017
+1

Build credit, track spending and manage money better, all with no credit score required.

Around the web

Reviews

  • diymanikFounder, Nectrpay.com
    Pros: 

    No credit score required is a life saver for building credit

    Cons: 

    Make it faster to get started maybe?

    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: 

    simple UI, low APR, and no fees

    Cons: 

    rewards (coming in a while!)

    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.

    Nik Milanović has used this product for one day.

Discussion

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Jason Gross
Maker
Hiring
@jasonbgross · Co-Founder & CEO, Petal
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.
Dimitris TzortzisHiring@dtzortzis42 · Product Lead @ Viral Loops
@jasonbgross congrats! I'm on the waitlist already, looking forward to it ;-)
midnight@itsmidnightyo · Music Promoter/Producer
@jasonbgross congratulations!! i made sure to sign up. :))
Gary@garytokman · developer
@jasonbgross Why launch on Product Hunt today, if you're just going to put everyone on a waiting list?
Shlok Vaidya@shloky · Sr. Product Manager at Planview, Writer
@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.
Jason Gross
Maker
Hiring
@jasonbgross · Co-Founder & CEO, Petal
@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.
Jason Gross
Maker
Hiring
@jasonbgross · Co-Founder & CEO, Petal
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.
Shlok Vaidya@shloky · Sr. Product Manager at Planview, Writer
@jasonbgross Gotcha. Cool. To chase that thread - Do you capture/assess what vendors I pay or get paid by not just on my Petal but my banking institution? If so, do you store that information? (I'm not coming at you, just feels like, in a post-OPM and post-Equifax world, consumers are going to look to understand their exposure.)
Nadia Yun@nadia_yun · The StartUP CMO: Marketing I PR I Social
@jasonbgross This is great, signed up for beta!
Jason Gross
Maker
Hiring
@jasonbgross · Co-Founder & CEO, Petal
@shloky All great (and timely questions), so thanks for that! First, we do not assess data on a vender-level (i.e., Petal doesn’t analyze who shops at Trader Joe’s and who shops at Whole Foods in making a credit decision). We also have serious safeguards in place for data security purposes. We don’t store bank credentials or Social Security Numbers on our system, and we keep all financial data encrypted and stored with a token identifier (rather than with PII). We use bank-level security protocols and are subject to audit and financial oversight. Finally, we work with secure configurations on AWS, similar to major financial companies like Capital One and NASDAQ. Being a new company born in the cloud allows us to adopt best practices in data security; the same can’t always be said about incumbents burdened with legacy systems. The technology we use is similar to what’s powering companies like Mint.com, Acorns, Betterment, Clarity and Robinhood. Thanks again for your interest in Petal and what we do!
Ryan@un3qual · Programmer
@jasonbgross I know nothing about credit cards, so this could mean nothing, but what is your connection to Visa?
Jason Gross
Maker
Hiring
@jasonbgross · Co-Founder & CEO, Petal
@un3qual Hey Ryan--Visa is our partner, and the card network that supports the Petal card. That means that you can use Petal anywhere Visa is accepted, in the U.S. and internationally, for both online and in-person transactions.
Jason Gross
Maker
Hiring
@jasonbgross · Co-Founder & CEO, Petal
@nadia_yun Thank you! So glad you like it 😊
Gerard van Kempen@gvkjr · Programmer, designer, font-afficionado.
@jasonbgross I'm curious as to where you guys get your revenue from if you don't request fees. Do you fully rely on interest rates, or do you have other revenue streams as well? (Eg. data mining, ...)
Ryan@un3qual · Programmer
@jasonbgross Sweet! Thanks for the quick reply.
Mike Cataldo@mccataldo · Software Eng., Test Nerd, Indie Hacker
@jasonbgross so what's the benefit to cardholders with no-fee, cash-reward cards like Fidelity Rewards and Amazon Rewards Visa's? Or are we outside of your target market?
Jason Gross
Maker
Hiring
@jasonbgross · Co-Founder & CEO, Petal
@gvkjr Hi Gerard, thanks for the question. Check out the answer to @pietervanmill 's question above. In addition to interest, merchants pay us to accept Visa credit cards. Let me know if you have any other questions!
Jason Gross
Maker
Hiring
@jasonbgross · Co-Founder & CEO, Petal
@mccataldo Hey Mike—great question. Petal is the only credit card that has no fees whatsoever and a true grace interest calculation (read more about that on our FAQ). Petal also comes with a digital product that we think is pretty special. In addition, we're working on some awesome user benefits that we're excited to announce in the coming months. There are a lot of credit cards out there and people have different preferences. We're hoping to offer something new and unique—credit that is honest, simple and accessible.
Kesava Mandiga@k3sava · Curious cat. Writer. Explorer.
@jasonbgross Love the vision behind this one! Looking forward to see how it takes off. Signed up. ;)
Mike Cataldo@mccataldo · Software Eng., Test Nerd, Indie Hacker
@jasonbgross looking forward to hearing about the upcoming features. Good luck!
Saif Al Falah@saifalfalah · JavaScript Developer
Which countries is this available in?
Trista Kempa
Maker
Hiring
@tristajaye · Ops + CX
@saifalfalah Hey Saif -- Per the FAQ, Petal is only available to U.S. Residents with a valid SSN or ITIN over the age of 18.
Kesava Mandiga@k3sava · Curious cat. Writer. Explorer.
@saifalfalah @tristajaye One more thing to wait for... Come to India someday soon. :)
Steffi@mistakenlyiteps · Builder of mobile apps, Deal Grocer
@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.
Trista Kempa
Maker
Hiring
@tristajaye · Ops + CX
@mistakenlyiteps Thanks! We'll be US only for our upcoming launch, but appreciate the tip!
Ravishankar@r_ravishankar · Director, Front end Enthusiast
Simple and clean website
Pieter van Mill@pietervanmill · Front-End Designer
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".
Jason Gross
Maker
Hiring
@jasonbgross · Co-Founder & CEO, Petal
@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.
Mike@seekwell_io · SeekWell.io
@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.
Mark Egerman@megerman · Cover, Co-Founder
This is a very strong team entering a large market with a product that is needed now more than ever.