Credit

that don’t require a security deposit.

How startups evaluate applicants

Among them is Deserve, which began offering cards in 2017. The company has three cards: the Deserve Classic for people new to credit, the Deserve Edu for students and the Deserve Pro for people with limited credit. More startups have followed with their own cards for people new or newer to credit, including Petal and AvantCard.

These companies have their own underwriting standards to evaluate applicants’ creditworthiness based on factors such as income, expenses, assets, debts and banking information. Depending on the company, you may have to provide access to your bank account.

“The way you use a debit card or bank account is highly indicative of how you will use a credit card,” says Kalpesh Kapadia, CEO and founder of Deserve.

Cards offered by such companies are an alternative to secured credit cards, which require a cash security deposit that’s refunded when you close or upgrade the card. Your credit limit on a secured card will usually be equal to your deposit. The unsecured cards from alternative