Credit card startup Petal, which promises credit for an irresponsible world, expanded its Jefferies debt facility.

Credit card startup Petal had arranged a $30 million debt facility with Jefferies a year ago. It is now expanding the arrangement to $300 million for boosting its card program. Jefferies is a global investment bank.

According to its website, Petal offers no-fees cards with a credit limit from $500 – $10,000. However, its APR, or Annual Percentage rate, range from 14.99% to 25.99% and cash backs from 1%-5%.

Notably, Petal does not require a credit history or an up-front deposit to qualify for a card, though it uses a special technology for credit evaluation.

“Our goal is to help Americans everywhere start building credit,” says Petal. “Tens of millions of Americans have no credit score at all, and millions more have short credit histories that may not tell the whole story.”

Expanded facility

The new debt arrangement will sustain Petal’s operations “for many quarters to come,” because the startup is showing stellar growth in card signups.

“It’s a massive vote of confidence in Petal’s mission to create a fundamentally better credit product experience,” Petal said, referring to the expanded debt facility from Jefferies.

Credit card startup Petal’s backers

Founded in 2016, Petal’s backers include Valar Ventures, Greyhound Capital, Third Prime Capital, RoseCliff Ventures and others. The startup has raised over $46 million in financing to date from venture capitalists, banks and institutions. It also has a debt facility with Silicon Valley Bank.

Novel technology sparks solid growth in card approvals

Petal said it witnessed exponential growth in card signups since its introduction last fall. Interestingly, more than 65% of customers are from the millennial and Gen Z categories.

Though Petal does not insist on credit history, it does use an innovative and proprietary technology that evaluates thousands of other financial data points, including the applicant’s earnings, bills and spending, and savings. These parameters do not normally figure in usual credit approval procedures.

The Petal credit card is issued by WebBank, member FDIC.