Petal 2 Cash Back Visa Card Review: Advantages
This is one of the rare cards that has no fees at all, which is great for people who love simplicity and really hate credit card fees and “gotchas.” Its graduated cash back rewards program is also a sweet incentive to make on-time payments while earning competitive rewards as your credit improves. Yet another plus: You don’t need excellent or even “good” credit to be approved.
How To Use Petal 1 No Annual Fee Visa Card
Once youre approved for the Petal 1 No Annual Fee Visa Card, you should use it for small purchases and bills you can afford to pay off right away. Not only is this a great way to build credit over time, but youll also avoid this cards high APR. Charging only what you can pay off when your statement balance is due will help you avoid taking on high-interest debts.
Also start working toward qualifying for a higher credit limit by making your payments on time each month, and monitoring your credit to ensure it stays within your given predetermined range. While you may not actually need a higher credit limit, having more open credit can improve your and give an additional boost to your credit score.
What You Need To Know About The Petal 2 Cash Back No Fees Visa Credit Card
With the Petal 2 “Cash Back, No Fees” Visa Credit Card, issued by WebBank Member FDIC, cardholders don’t have to pay an annual fee, nor any late payment fees or foreign transaction fees if they travel outside the U.S.
Compared to other cards for fair or average credit, such as secured credit cards, Petal also does not require any security deposits and the credit limits range from $500 up to $10,000, depending on your creditworthiness. Interested applicants will need to have at least one active bank account to link to their application.
Instead of just looking at your credit history when you apply, WebBank will also consider your bank statements and other financial data to determine your eligibility for the Petal 2 Visa Credit Card. The bank looks at your credit score if you have one, but in case it’s in the fair or low range, it also reviews your bank statements to confirm your earnings and history of paying bills on time.
And if you have no credit at all, that’s fine. The Petal 2 Visa Credit Card ranked as the overall top credit card for building your credit because you can apply when you’re just starting out, as long as you have a bank account.
The card’s rewards program may motivate you to make on-time payments as well . Cardholders earn 1% cash back on eligible purchases right away and up to 1.5% after making 12 on-time monthly payments. They also receive 2% to 10% cash back from select merchants.
- Excellent: 781 to 850
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Petal 2 Cash Back No Fees Visa Credit Card
The Petal 2 card offers a tiered cash-back rewards program that motivates users to make their monthly payments on time. Follow the rules, and you can earn up to 1.5% on eligible purchases according to the following schedule:
- Immediately upon card activation: earn 1%
- After 12 on-time monthly payments: earn up to 1.5%
Cardholders are automatically enrolled and can redeem cash back as a statement credit, electronic transfer or check.
From time to time, bonus cash back may be available on certain purchases, helping you earn as much as 2% to 10% cash back from select merchants.
How To Use The Petal 2 Visa Credit Card
If youre a beginner to using credit, use the Petal 2 Visa Credit Credit Card as a tool to build your credit score and begin practicing good credit habits. Start by charging small purchases you can afford to pay off to your card, and make sure only positive payments are reported to the credit bureaus by paying your credit card bill early or on time each month.
Not only will those positive payments have a big effect on your credit score, but youll also earn a boosted 1.25% on your spending after six on-time credit card payments, then 1.5% back after 12 on-time payments. When youre ready to redeem your cash back, you can request a statement credit, transfer to your bank account, or paper check.
You should avoid carrying a balance on this card accruing interest at a rate between 12.99% and 26.99% will quickly wipe out any rewards you earn on your spending.
Finally, keep your credit limit in mind while you spend with this card. , or the amount of credit you have available versus the amount you owe , is one of the most influential credit scoring factors. Experts recommend keeping this ratio below 30%. If youre assigned the minimum credit limit of $500, for example, you should aim to keep your statement balance below $150.
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Petal 2 Cash Back No Fees Visa Credit Card: A Great Card For Newbies
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Editorial Note: The content of this article is based on the authors opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.
Editor’s Rating
- On Petal’s Secure Website
Founded in 2016, Petal is a new credit card company whose mission is to provide “responsible credit for the modern world.” Petal has disrupted the industry by eliminating all the fuss that comes with credit cards, with the intention of helping those who struggle with qualifying for certain cards and want to build their credit history. Having this goal in mind, Petal originally created a card for those who have no credit history or a limited credit history.
Drawbacks To This Card
- One application for both cards: You won’t know which Petal card you qualify for until you fill out and submit the pre-approval application. On the plus side, you can check your pre-approval without impacting your credit score.
- No intro APR: There is no introductory interest rate offer on either of the Petal cards. So if you were hoping to avoid interest charges for a few months with a new credit card, the Petal cards would not be a good fit.
- No balance transfers or cash advances: Neither Petal card allows you do do balance transfers or cash advances.
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Don’t Take Our Word For It
âPetal uses a more holistic and comprehensive underwriting model to determine the creditworthiness of credit card applicants compared to traditional banks that rely predominantly on an applicantâs FICO score.â
âWhen people sign up for the card, theyâre given access to an app that advises them on money management decisionsâthe app will tell people itâs good to aim to pay off their whole credit bill at the end of the month, but will not penalize them if they canât.â
âIts âradically simplifiedâ user interface and mobile app makes it easy to manage money, track spending and build credit without thinking about it.â
âIts âradically simplifiedâ user interface and mobile app makes it easy to manage money, track spending and build credit without thinking about it.â
âWhen people sign up for the card, theyâre given access to an app that advises them on money management decisionsâthe app will tell people itâs good to aim to pay off their whole credit bill at the end of the month, but will not penalize them if they canât.â
âPetal uses a more holistic and comprehensive underwriting model to determine the creditworthiness of credit card applicants compared to traditional banks that rely predominantly on an applicantâs FICO score.â
Cardratings Editor’s Analysis: Pros & Cons
- Usually those with no credit history are limited to secured credit cards, which rarely offer rewards. This card is great for anyone looking to build their credit while also earning rewards, with up to 1.5% cash back on eligible purchases.
- Reporting to all three major credit bureaus to help build a credit score.
- No fees of any kind, including no annual fee, no late payment fee and no foreign transaction fee.
- This is a card for people with no credit history – not poor credit. If you have significant delinquencies or a bankruptcy on your record, you may not be approved.
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Petal 2 Credit Card Review: A Fee
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.
Application Process For Petal 2 Cash Back No Fees Visa Credit Card
The application process for the Petal® 2 Cash Back, No Fees Visa® Credit Card is much different than a traditional credit card. It asks for all of the same information such as name, birthdate, email, rent amount and income. However, it follows a user-friendly format that asks you for one piece of information at a time, rather than the boring template used by many credit card issuers.
Once you submit your application, it is analyzed along with other factors using “clever algorithms” to determine if you are approved or not. Petal’s unique technology generates a “Cash Score” for you, which pulls from your banking history based on your existing bills and your income. This makes it possible for potential cardholders with limited credit histories to qualify.
You may feel leery giving your banking information to a card company that is relatively new. However, rest assured that the Petal® 2 Cash Back, No Fees Visa® Credit Card, is safe to use. WebBank, who manages the card, is FDIC-insured, meaning that the federal government protects consumers against bank failure.
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Bankrates Takeis The Petal One Visa Card Worth It
The Petal 1 No Annual Fee Visa Credit Card is a decent low-cost choice if youre dead set on an unsecured card and your credit score doesnt reflect the best financial habits yet. However, the Petal 2 Card is the superior no annual fee card if youre eligible.
You also have a few better options if you qualify for a student credit card or if you can pony up a deposit for a secured card.
How The Petal Card Works
Applying for a card and being denied can hurt your credit score, so the Petal Card offers a pre-approval process to avoid causing damage. Prospective applicants fill out some information, and Petal performs a “soft pull” on their credit, which doesn’t affect your credit score. Then, you’ll be told whether or not you’re likely to be approved before you officially apply. Petal specifically says their card is a great choice for people who are new to credit, and that no credit is required to apply. That’s because Petal looks beyond your credit score during its application process.
Once approved, you’ll receive a card that has no annual fees, no late fees and no foreign transaction fees. You’ll start off by receiving 1% cash back on all purchases, but that will increase to 1.5% after you make 12 consecutive monthly payments on time. The standard interest rate is 12.99% – 26.99% variable APR, depending on your credit history.
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Preapproval For The Petal 2 Cash Back No Fees Visa Credit Card
If you’re worried about your application being denied, you can visit the card’s website to see if you are preapproved for the Petal® 2 Cash Back, No Fees Visa® Credit Card. Utilizing a preapproval for a credit card is a great way to understand your financial options before making a decision on the product that works best for you.
The best part? A preapproval will not cause a hard credit inquiry, but rather a soft credit inquiry to see if you can qualify. This means that your credit score will not be affected by the preapproval process whatsoever.
Who Is This Credit Card Best For
- Prioritizes sticking to their budget while buying what they want and need See more cardsSavvy Saver
- Attacks existing balances while avoiding new debt See more cardsDebt Warrior
- Takes improving their finances seriously and wants recognition for using credit responsibly See more cardsCredit Builder
The Petal 1 Card is designed for people with low to fair credit scores, so its best for you if youre building your credit and, in general, you manage your money well. Its particularly appealing if you want to avoid a security deposit, which is required by secured credit cards designed for consumers with low or no credit, and fees, which are relatively common among unsecured credit cards for bad credit.
While the card doesnt offer consistent cash back, its one of just a handful of cards in its class that will give you some form of rewards while you work on your credit. So, if you cant qualify for a solid rewards credit card right now, but dont want to miss out on cash back, the Petal 1 Card may be right for you. That said, its not a good option if you have a good credit history and can get approved for a card with better perks.
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Not entirely fee-free like its predecessor
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Doesnt offer balance transfers or cash advances
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Petal 1 No Annual Fee Visa Credit Card Vs Opensky Secured Visa Credit Card
If youve had a credit misstep in the form of bankruptcy within the last 48 months, you wont be eligible to apply for the Petal 1 Visa card. In this scenario your best bet may be to get a secured credit card which doesnt have a similar requirement for approval.
The OpenSky® Secured Visa® Credit Card is an option worth considering. The OpenSky Secured card doesnt require a credit check and no bank account is required. Your credit limit is equal to the amount of your deposit, starting at a minimum of $200. It does have an annual fee of: $35 but the tradeoff is that theres no credit check. This might make the carrying cost worth it to you.
% Unlimited Cash Back To Start
The most significant difference between the Petal 2 and Petal 1 is that the Petal® 2 Cash Back, No Fees Visa® Credit Card earns 1% cash back on all purchases. This 1% cash back isnt spectacular, as it is a common feature with an ever-increasing number of credit builder cards, plus many checking and debit accounts.
After six on-time payments, that 1% cash back becomes 1.25%, not bad. However, the real highlight with the Petal 2 is that the 1% cash back becomes 1.5% unlimited cash back after a string of 12 consecutive on-time payments. A credit card aimed at consumers with subprime credit scores 1.5% cash back on all purchases is somewhat tempting.
The Petal 2 Visa also earns between 2% and 10% back on purchases with select retailers. This feature also appears with the Petal 1 Visa still, it is a nice little bonus for cardholders.
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Is The Petal 1 Credit Card Right For You
If you have limited/poor/average credit, the Petal 1 Credit Card is a solid card to help you establish credit history or improve a bad credit score. With a $0 annual fee and rewards on purchases from select merchants, its a good starter card. Just be aware of the Variable APR between 19.99% – 29.49%, because if you carry a balance, you could get hit with some expensive interest charges. And if youre a consumer with somewhat better credit , you might consider applying for the Petal 2 Credit Card instead. The Petal 2 Credit Card offers rewards on every eligible purchase and does not charge fees of any kind.
Finally, if your credit is so bad you think you might get denied for either of the Petal credit cards, consider the AvantCard Credit Card instead. It charges a $59 annual fee, but might be more accessible to consumers with fair/limited/bad/poor credit. You could also consider a secured card such as the Discover it® Secured Credit Card, which requires you to submit a security deposit to the issuer in the amount of your credit limit.
How To Apply For The Petal 2 Cash Back No Fees Visa Credit Card
You can fill out WebBank’s initial pre-qualification application for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card online in about 15 minutes. The pre-qualification process results in a soft pull on your credit report, so it won’t impact your credit at all.
The pre-qualification application asks for basic personal information such as your birthday, phone number, and home address. You may also be asked to connect your checking, savings, and credit accounts so Petal can get a sense of your earnings and savings as well as your spending habits, which is meant to increase your chances of approval. Petal uses a third-party data provider and connects to your accounts securely, and it never stores your login information.
After this, Petal will let you know if you’re pre-approved for its Petal® 2 “Cash Back, No Fees” Visa® Credit Card, which gives you a sense of your eligibility without dinging your credit. Keep in mind that pre-qualifying doesn’t guarantee you’ll be approved for the card. If you are pre-approved, you can finish the full application online and Petal will do a hard pull on your credit report, which might have a small, temporary effect on your credit.
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