US credit card fintech Petal secures $200m debt facility

New York-based fintech Petal has secured a $200m debt facility from Victory Park Capital and a new term loan facility for up to $20m with Trinity Capital.

The company will use the funding, which builds on a $35m raise led by Peter Thiel’s Valar Ventures in May, to expand its credit card program, helping consumers who are new to credit to build it with the data in their personal banking history. 

“It will soon be possible for any US consumer to use their banking history to qualify for new and better financial services,” Petal co-founder and CEO Jason Rosen said.

“That’s great for consumers, and an opportunity for Petal to make credit accessible to millions of people who have been overlooked and underserved for too long.”

So far, around 400,000 consumers have been approved for Petal credit cards — there are three different options ranging from free to $59 a year and with varying cashback rewards and credit limits.

In 2022 alone, more than 100,000 new cards were approved, using bank data to determine a consumer’s credit worthiness where they might typically be declined based on credit score alone. 

“VPC is a strong supporter of Petal’s mission to make responsible, modern financial services available to everyone,” Victory Park Capital partner Jason Brown said.

“We look forward to partnering with the Petal team as they work to expand the credit card program and serve even more underbanked consumers.”