Petal issues credit cards to consumers who are new-to-credit, without requiring established credit scores to qualify.

Petal, a credit card and financial technology company, has secured a $200 million debt facility from Victory Park Capital (VPC), an alternative investment firm. Additionally, Petal has obtained a new term loan facility with Trinity Capital (NASDAQ: TRIN) for up to $20 million and raised $20 million in equity funding from existing investors. The influx of capital will support Petal’s expansion and growth as the U.S. open banking sector emerges.

Petal’s unique approach to creditworthiness, known as cash flow underwriting, allows consumers without credit scores to qualify for credit cards based on their banking history. This has enabled more than 400,000 consumers to access high-quality Visa credit cards. The company’s mission to provide credit to underserved individuals aligns with the upcoming Consumer Financial Protection Bureau (CFPB) rulemaking on Dodd-Frank Section 1033, which aims to enhance consumers’ access to cash flow data for credit underwriting. (CISION PRWeb)

The current economic climate has seen traditional bank lenders increasingly reject credit applicants, particularly those with credit scores below 680. Petal’s groundbreaking method has bridged the divide by granting approval to individuals with limited or no credit history, a segment previously rejected by major banks.

With the recent funding, Petal has now amassed over $300 million in equity capital and secured more than $680 million in debt financing. The company’s focus on financial inclusivity and its cash flow underwriting model position it to cater to millions of underserved consumers and expand its credit card program significantly.

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