Empower Finance, known for its cash-advance app, has acquired Petal, the credit card issuer recognized for helping individuals with poor credit histories. Initially, Petal gained attention for its use of alternative data in credit assessments, offering a more accessible credit line without requiring a security deposit and providing up to 10% cash back rewards. However, Petal faced criticism for downgrading customers to higher-fee cards. This acquisition by Empower could lead to significant changes in service offerings and possibly more robust financial tools for users, although it raises concerns about potential new fees and changes to account terms. Current Petal cardholders might see benefits from Empower's broader range of financial products but should stay alert to any modifications in their account terms, especially regarding fees and card benefits.
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