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new credit card option for those with scant credit histories

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new credit card option for those with scant credit histories

a new york startup aims to use everyday financial information to qualify people with scant or no credit histories for its credit cards.the company, called petal, considers an applicant's standard credit scores, when available. but it also analyzes their digital financial records, like checking accounts or, in some cases, prepaid debit cards, to rapidly assess their income and spending habits."it uses more financial information to make a credit decision," said jason gross, chief executive of petal.the company plans to target consumers who are "new to credit," like young adults, recent immigrants and lower-income consumers, as well as others who may lack traditional credit scores, gross said.the idea is that by sharing information about their personal cash flow, consumers can get a quick decision on a card application and access to a low-cost card even if they don't fit the traditional profile of a top-tier credit customer.the company's petal visa card isn't widely available yet, but is being tested privately starting this month. consumers can sign up online to receive an invitation to apply.petal isn't a bank, but works with a bank, as yet undisclosed, to issue its petal card.the card is the latest in a batch of new tools aimed at expanding financial options for consumers, often by tapping into digital data.traditionally, applicants for a credit card are assessed based on their credit score — a three digit summary of information in their credit reports, compiled by ...