Petal® 2 “Cash Back, No Fees” Visa® Credit Card Review

No Annual Fee Card

Petal® 2 "Cash Back, No Fees" Visa® Credit Card

Top Features

• Rewards
• Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments. 1% cash back on eligible purchases right away. 2% - 10% cash back at select merchants.
• Welcome Bonus
• N/A
• Annual Fee
• $0

5.0

Credit Score: Excellent, Good, Limited History, No History, Limited, No Credit

Terms and Limitations Apply

ALTERNATE CARD TO CONSIDER

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PETAL 2 CREDIT CARD SCORE NEEDED

Until now, credit card options for those without a credit score were limited. In many cases, people had no choice but to make an upfront deposit for a secured credit card. Or, if they were approved for an unsecured card, their spending limit may have been very low. However, the new CardName changes all that. (Petal credit cards are issued by WebBank, Member FDIC)

The Petal 2 Cash Back No Fees Visa Credit Card is ideal for those who have solid money management skills but no credit history. Applicants without a credit score can link to their bank account to prove their creditworthiness. For those approved, credit limits start at $300 and run to as much as $10,000. The card not only provides access to credit for those with no score, but it offers cash back:

• 1% cash back on all eligible purchases upon card activation
• 1.25% cash back on all eligible purchases after making six on-time monthly payments
• 1.5% cash back on all eligible purchases after making 12 on-time monthly payments
• 2% – 10% cash back when you shop with select merchants.

Beyond that, the Petal 2 Visa Card comes with these additional perks:

• No fees of any kind, including no annual fee, no late payment fee and no foreign transaction fee
• Reporting to all three major credit bureaus to help build a credit score
• Easy money management through the Petal app

PETAL 2 CASH BACK

We love that the CardName is not only willing to approve applicants with no credit history, but it provides them rewards to boot. Its cash back percentage is competitive with other cards, and it’s designed in a way to encourage responsible money habits. All cardholders start with 1% cash back on eligible purchases. That amount increases to 1.25% after six on-time monthly payments and then 1.5% after 12 on-time monthly payments. Additionally, cardholders can earn 2% – 10% cash back from select merchants (the list is available via the Petal mobile app) thanks to the card’s Offers program. Just use your card with any of those merchants and the extra cash back is automatic – there’s no need to sign up, keep up with rotating categories or worry about a cap. Merchants included vary, but could include Gap, Casper, Lowe’s Home Improvement and more.

The Petal 2 Visa Credit Card also gets kudos for being fee-free and extending credit limits of up to $10,000 to new cardholders, something you won’t get with a secured credit card. Petal reports to all three major credit reporting bureaus – Experian, Equifax and TransUnion – to help users build their credit score.

Another reason to like the Petal 2 Visa Card is its security features. Cardholders can temporarily freeze their accounts at any time. Customer service is available 24/7, and Petal’s user-friendly app makes it easy to track spending for both your credit card and bank account in one place.

POTENTIAL DOWNSIDES OF THE PETAL 2 VISA CREDIT CARD

While 1.5% cash back is similar to the standard rates offered by other cash-back cards like CardName discontinued, the initial 1% cash back rate is lower than what you could get elsewhere. What’s more, unlike many other rewards credit cards, there is no welcome cash back bonus available for the CardName.

Although the Petal 2 Visa Credit Card is a great starter card for those with no credit, don’t confuse it as a card for those with poor credit. If you have significant delinquencies or a bankruptcy on your record, you may not be approved.

Another potential downside of the Petal 2 Visa Card is that you can’t use it for cash advances. Also, be aware that if you carry a balance, you’ll pay an APR that currently ranges from RegAPR. That can easily wipe out any cash back rewards you earn with the card if you don’t pay your balance in full each month.

PETAL 2 VISA CREDIT CARD CARDHOLDER SCORES

CardRatings conducts a survey annually to learn what actual cardholders think of their cards. Here are the results:

HOW THE PETAL 2 VISA CARD COMPARES TO OTHER CARDS

Petal 2 Cash Back No Fees Visa Credit Card vs. CardName

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Neither the card_name nor the CardName charge an annual fee or late fees. CardName takes that one step further by promising to never assess a penalty interest rate either. However, unlike Petal, the Citi card isn’t truly fee-free. It charges foreign transactions fees, cash advance fees and balance transfer fees.

What’s more, CardName doesn’t offer any rewards. It does give cardholders free access to their FICO® Score as well as the ability to choose their own payment date, but that doesn’t really compete with the 1%-1.5% cash back offered by the Petal 2 Visa Card.

Where the CardName does have a significant advantage over the CardName is in its 0% introductory APR for both purchases and balance transfers offer. The zero percent rate is good on purchases for the first 12 months after opening an account, and for 21 months for balance transfers from the date of first transfer and completed within the first four months. After that, the rates jump to RegAPR which are slightly higher than those on the Petal 2 Cash Back No Fees Visa Credit Card.

Petal 2 Cash Back No Fees Visa Credit Card vs. CardName

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You won’t pay an annual fee or foreign transaction fees with either the CardName or the CardName. Both cards also offer unlimited 1.5% cash back although Petal requires 12 on-time monthly payments to earn that rate while Capital One offers it immediately.

CardName also has an advantage over the CardName in that it offers a welcome bonus opportunity: Spend $500 within the first three months of opening an account and you’ll get a one-time cash back bonus of $200. Capital One also extends intro 0% APR on purchases and balance transfers for the first 15 months of opening an account (balance transfer fee applies). The card’s standard APRs are RegAPR.

Another advantage of the CardName is its extensive perks. In addition to allowing cardholders to redeem cash back for gift cards, statement credits or cash, the card offers extended warranty protection, 24-hour travel assistance, travel accident insurance and a host of other benefits. However, you’ll need very good or excellent credit to qualify for this card.

Petal 2 Cash Back No Fees Visa Credit Card vs. CardName

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Both the CardName and the CardName are designed for those who don’t have the excellent credit needed for other cards. While the Petal 2 Card is designed for those with no credit, the CardName requires CreditScoreNeeded credit.

You won’t get any rewards with the CardName which puts it at a significant disadvantage to the CardName. However, it provides perks such as free credit scores and credit monitoring tools through CreditWise from Capital One. Meanwhile, the Petal 2 could give you up to a $10,000 credit line right off the bat.

Another advantage of the Petal 2 Visa Card over the CardName is its APR. While the Petal Card’s APR ranges from RegAPR, CardName cardholders will pay RegAPR on their balances.

IS THE PETAL 2 CASH BACK NO FEES VISA CREDIT CARD A GOOD CARD?

The CardName is a good card for anyone with a limited credit history. While it doesn’t come with some of the bells and whistles offered by other rewards cards, it has a solid cash back offer. Plus, it’s hard to argue with any card that isn’t going to charge you fees.