The PDF attached to the email you receive when your application is declined (also known as the Adverse Action notice) can give you a more specific idea of why you're not able to get Petal right now, but we've also listed some potential reasons as to why you may have been declined below—please note that these are common reasons why applications are declined, not necessarily the reasons that applied to your specific case:
Your financial institution may not be supported.
Unfortunately, some banks such as (Chime and PNC) don't give third parties, like Petal, access to enough financial information to evaluate your application. We want to make sure we evaluate you based on your complete digital financial record, so we are not able to connect to process your application using an account associated with one of those institutions. We know this isn’t a good experience, so we’re working hard to get this connection to work better for our users. If you check back with us periodically, we can give you an update on our progress.
In the meantime, you can help us get connected! If you think we might have issues connecting to your financial institution, reach out to them directly and let them know you'd like to share your data with Petal—it’s your data after all! The more those banks hear from its customers about this issue, the quicker we can get you up and running.
A history of bankruptcy, missed payments, or recent collections
If you're looking to repair damaged credit, you may find better options on the market than Petal. Petal's mission is to give those without access to credit the chance to build credit, but at this time, applicants who have a bankruptcy, a history of missed payments, or a record of recent collections, for instance, may not qualify for Petal.
Short payment history
If you just opened a U.S bank account, you may not have enough cash flow history in that account for us to figure out if you're qualified for Petal. If you come back and reapply in a few months after building your cashflow history, you may be able to get Petal.
You have too much debt relative to your income.
The Debt-to-Income Ratio (or DTI) is a common metric used by lenders to figure out whether you can afford to take on a new loan or credit card. It’s calculated by adding up all of your monthly debt payments and dividing that by your gross monthly income. For reference, a DTI of 43% or less is required for a qualified mortgage. For other types of debt like credit cards, a DTI of 36% or less is considered healthy.
Well, my financial situation has changed since I was declined. When can I reapply?
Our dream is to bring access to credit to more people, and we're aiming to help allow people to apply again in the future. If you're still interested in getting Petal, we'd recommend checking in with us every now and then to see if you can submit the application again.