#LendTech / Petal raises $55m for credit card targeting underbanked

Petal, a US credit card startup that is ditching traditional credit scores in an effort to sign up young people and the underbanked, has closed a $55 million Series C funding round led by Valar Ventures.

Petal offers a Visa credit card that people can qualify for even if they’ve never used credit before. Instead of relying solely on credit scores, the firm has built proprietary technology that analyses banking history-measuring creditworthiness based on income, spending, and savings.

The process, referred to as “Cash Scoring”, measures economic fundamentals that aren’t typically considered in a credit approval decision… Once approved, customers get a mobile app where members can automate payments, track their credit scores, manage subscriptions, and stay on top of their spending.