This starter card is a good choice for those just starting to build credit because it doesn’t rely solely on your credit score for approval, doesn’t charge an annual fee and doesn’t require a security deposit.
About the Petal 2 Visa Card
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card (issued by WebBank) is a starter credit card that allows you to build your credit history with consistent cash-back rewards, no security deposit and no fees whatsoever. In addition to your credit history, Petal may also consider your money habits to determine eligibility, making it easier for people with limited credit history to get approved.
You can also check if you’re pre-approved without hurting your credit score. However, be aware the card’s interest rate can be incredibly high, and the rewards program is a bit complicated.
Petal 2 Visa Credit Card basics
- Annual fee: $0.
- Welcome bonus: None.
- Rewards: 1% to 1.5% cash back on everyday purchases, plus 2% to 10% back at select merchants.
- Regular APR: 17.49% to 31.49% variable.
- Other perks and benefits: Qualify with alternative credit, get a credit limit increase when you meet certain requirements, get access to Visa Local Offers, no foreign transaction fees or fees of any kind.
- Does the issuer offer a pre-approval tool? Yes.
- Recommended credit score: Limited, fair, good or excellent.
Petal 2 Visa Credit Card rewards
When you first open the Petal 2 Card, you’ll earn 1% cash back on every purchase you make. Once you’ve made six on-time monthly payments, though, that rate will bump up to 1.25%, and after 12 on-time payments, you’ll earn 1.5% back on everyday purchases.
If you have a month without a minimum payment, you won’t lose your progress, but you also won’t get credit for that month.
Additionally, you can maximize your rewards by earning between 2% and 10% back on purchases made with select local and national retailers. You can find these offers in the Petal mobile app, but you don’t need to activate them to enjoy the higher rewards rate.
When it comes to redemption, you can use your cash back to get a statement credit on your account. If you have more than $20 in rewards, you can also request a paper check or deposit to your bank account, but you need to call Petal for that option.
Petal 2 Visa Credit Card rewards potential
Using government data and other publicly available information, we estimate that a household in the U.S. that would be in the market for this card has an annual income of $84,352 and $25,087 in expenses they are likely to be able to charge to a credit card.
With the Petal 2 Card, you can earn up to $376.31 in rewards once you’ve achieved the 1.5% rewards rate on everyday purchases. If you take advantage of merchant offers, that amount could grow even more.
Petal 2 Visa Credit Card APR
The Petal 2 card has a variable interest rate that ranges from 17.49% to 31.49%, depending on your creditworthiness. While it’s common for a starter credit card to charge a higher interest rate, it’s rare for a card to charge an APR upwards of 30%.
That said, if you make it a priority to pay off your balance in full every month, you’ll be able to avoid interest charges altogether.
Petal 2 Visa Credit Card pros
- Qualify with alternative credit: If you have a credit score, Petal will consider it. But Petal also generates a Cash Score, based on your income and expenses, by asking you to link your bank accounts. If you have no credit history at all, you may still be able to get approved on your Cash Score alone.
- Get credit limit increases: Petal automatically reviews your account for credit limit increases, but there are steps you can take to improve your odds with the Leap program. You can get an increase of $50 or more if you make six monthly payments of the greater of your minimum payment or 15% of your balance and avoid letting your VantageScore credit score fall below your Leap goal by 25 points or more.
- Visa Local Offers: Add your Petal 2 card to your Uber account, and you can get rewarded in Uber credits for spending at more than 1,000 featured retailers, restaurants and coffee shops.
Petal 2 Visa Credit Card cons
- No welcome bonus: In addition to needing to wait at least 12 months to earn the card’s 1.5% cash-back rate, you also won’t earn a welcome bonus. But that’s common among starter credit cards, so leverage the card to build credit history, and eventually you will hopefully be able to qualify for credit cards with sign-up bonuses in the future.
- Complicated rewards: While many credit cards offer tiered rewards, it’s not common for cards to tie your rewards rate to your payment activity, and it’ll take a minimum of a year before you’ll earn the card’s highest rewards rate.
- No cash advances or balance transfers: Cash advances aren’t generally recommended because of how costly they are — and not having an introductory 0% APR on balance transfers may deter you from wanting to do one. But in either case, you can’t do one with the Petal 2 Card even if you want to.
How the Petal 2 Visa Credit Card compares to other starter credit cards
Petal 2 Visa Credit Card vs. Petal® 1 “No Annual Fee” Visa® Credit Card
If you can’t get approved for the Petal 2 Card, you may be offered the Petal 1 Card (issued by WebBank) instead. This card also offers 2% to 10% cash back with select merchant offers, and it doesn’t charge an annual fee or foreign transaction fees. But its APR is higher at 24.49% to 33.99% variable.
Petal 2 Visa Credit Card vs. Capital One Quicksilver Secured Cash Rewards Credit Card
If you have bad credit, the Petal 2 Card may not be available to you. Instead, you may consider the Capital One Quicksilver Secured Cash Rewards Credit Card. With this card, you’ll earn 1.5% cash back on every purchase you make from the start, and there’s no annual fee. While there’s a security deposit requirement, with a $200 minimum, you can get a refund without closing your account if you meet certain criteria. You can also qualify for a credit line increase with no additional deposit requirement as soon as six months after account opening.
Petal 2 Visa Credit Card vs. SuperCash Card
Unlike traditional credit cards, the SuperCash Card functions as a credit-debit hybrid. Your limit is equal to the amount you have in your account, similar to a prepaid debit card. But Super will also report your payments to the credit bureaus, allowing you to build your credit history. There’s no credit check when you apply, making it a good choice for people with limited, bad or no credit history at all. It also offers 2% cash back on every purchase. There are no fees beyond an expedited shipping fee for card replacements.
Should you get the Petal 2 Visa Credit Card?
The Petal 2 Credit Card is worth considering if you have limited credit history and want to build credit without putting up a security deposit for a secured credit card. That’s especially true if your credit history is thin but you generally manage your income and expenses well.
If you already have fair credit or better, however, you may be able to get better rewards elsewhere and possibly even earn a welcome bonus. Also, if you think you might carry a balance month to month, you may want to skip this card due to a potentially high APR.
As with any credit card, take your time to compare alternatives to determine the best fit for you.
Petal 2 Visa Credit Card summary
Frequently asked questions (FAQS)
Yes. Petal offers the chance to get pre-approved with no credit check before you submit an official application. As always, note that pre-approval does not guarantee approval once you actually apply, but indicates that you likely have a strong chance of being approved.
Petal doesn’t specify a minimum credit score requirement, but generally, people with limited or better credit may be able to get approved. If you have bad credit, however, you may be redirected to one of Petal’s other cards.
Yes. Your due date will be at least 25 days after your statement date with each billing cycle. If you pay off your balance in full by your due date each month, you won’t be charged interest on any portion of your balance.
Yes. Petal offers the chance to get pre-approved with no credit check before you submit an official application.
Yes. In addition to reviewing your account periodically for credit limit increases, Petal offers the chance to get increases with eligible on-time payments and general good credit habits through its Leap program.
