Petal® 1 "No Annual Fee" Visa® Credit Card Review
Jennifer Doss
Last Updated: February 15, 2024 Petal® 1 "No Annual Fee" Visa® Credit Card
CardRatings Editor's Analysis: Pros & Cons
- Earn cash back of up to 10% at select merchants.
- Enjoy no annual fees and no foreign transaction fees.
- With this card, you'll have an opportunity to increase your credit limit in as little as six months.
- Though this card offers the chance to earn cash back, only purchases from a limited number of merchants are eligible.
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TABLE OF CONTENTS
- What makes the Petal® 1 Credit Card unique?
- How does the Petal® 1 Credit Card work?
- What are the benefits of the Petal® 1 Credit Card?
- What are the potential downsides of the Petal® 1 Credit Card?
- Petal® 1 Credit Card cardholder scores?
- How does the Petal® 1 Credit Card compare to other cards?
- Is the Petal® 1 Credit Card a good card?
Traditionally, those with limited credit histories or low credit scores have had few credit card options. In many cases, people have needed to pay a deposit for a secured card before they could be approved for an unsecured card. However, the CardName is making it easier to skip straight to an unsecured account. (Petal cards are issued by WebBank, Member FDIC)
The Petal® 1 card is designed for those who are still building credit, but it doesn't ask cardholders to pay a security deposit. There's no annual fee either. Plus, there's even an opportunity to earn cash back on some purchases.
Keep reading for a deep dive into the Petal® 1 credit card, its features and why it might be right for you.
WHAT MAKES THE PETAL® 1 CREDIT CARD UNIQUE?
The CardName is unique for several reasons, most notably in that it uses a "Cash Score" when determining whether to approve an application. This score is based on an applicant's banking data, and it is considered alongside a credit score to determine creditworthiness. As a result, those with a lackluster credit score can still be approved for the card (applicants must be at least 18 years old, be a legal U.S. resident, have a SSN or ITIN, and be able to make payments from a U.S. bank account).
Another unique feature of the card is its app, which can be used for budgeting as well as account management. Cardholders can also monitor their credit score within the app.
Finally, while credit card rewards are often thought of as something reserved for those with very good or excellent credit, Petal® 1 offers the chance to earn cash back from select merchants. The cash back is available via various offers loaded on the card, and these can be worth as much as 10% of an eligible purchase.
Top Features
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- Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
- $0 intro annual fee for the first year, then $95.
- Buy Now, Pay Later: Enjoy $0 intro plan fees when you use Plan It® to split up large purchases into monthly installments. Pay $0 intro plan fees on plans created during the first 12 months from the date of account opening. Plans created after that will have a monthly plan fee up to 1.33% of each eligible purchase amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors.
- Low Intro APR: 0% on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 19.24% - 29.99%. Variable APRs will not exceed 29.99%.
- 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
- 6% Cash Back on select U.S. streaming subscriptions.
- 3% Cash Back at U.S. gas stations.
- 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
- 1% Cash Back on other purchases.
- Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
- Get up to $120 in statement credits annually when you pay for an auto-renewing subscription to Equinox+ at equinoxplus.com with your Blue Cash Preferred® Card. That's $10 in statement credits each month. Enrollment required.
- Thinking about getting the Disney Bundle which can include Disney+, Hulu, and ESPN+? Your decision made easy with $7/month back in the form of a statement credit after you spend $9.99 or more each month on an eligible subscription (subject to auto renewal) with your Blue Cash Preferred® Card. Enrollment required.
- Terms Apply.
HOW DOES THE PETAL® 1 CREDIT CARD WORK?
While it does have some unique features, the CardName works largely the same as any other credit card. Once approved, cardholders are issued a credit limit and can spend up to that amount at any merchant accepting Visa.
Credit limits on Petal® 1 can be anywhere from $300-$5,000. Through its Leap program, cardholders can earn a higher credit limit after six months assuming they make qualifying monthly on-time payments and maintain their credit score within a personalized range.
It's always best to pay off a card each month, but if you carry a balance, Petal® 1 charges a RegAPR APR.
There is no annual fee to have a Petal® 1 card, but you could get assessed a late payment or returned payment fee if you miss a payment or make a payment that doesn't go through.
WHAT ARE THE BENEFITS OF THE PETAL® 1 CREDIT CARD?
For those looking to build credit, there are several reasons to consider the CardName:
- No annual fee or foreign transaction fee
- Opportunity to earn cash back
- Budgeting tools via the Petal app
- Chance to earn a credit increase within six months
Petal® 1's Cash Score is also a significant advantage for those who have no credit history or a limited one. It allows people who might be otherwise ineligible for an unsecured card an opportunity to obtain one.
What's more, Petal® 1 will preapprove applicants without impacting their credit score. To do so, you'll need to link a bank account so the company can assess your cashflow. Final approval, though, may include a credit check.
WHAT ARE THE POTENTIAL DOWNSIDES OF THE PETAL® 1 CREDIT CARD?
The downsides of the CardName aren't necessarily unique to the card and are traits shared by many accounts marketed to those with minimal credit histories or lower credit scores. They include the following:
- Higher interest rate
- Balance transfers and cash advances not supported
- Limited reward-earning potential
While Petal® 1 offers the chance to earn cash back, only purchases from a limited number of merchants are eligible. Plus, the card doesn't have any type of welcome offer - such as an introductory APR or bonus rewards - for new cardholders.
PETAL® 1 CREDIT CARD CARDHOLDER SCORES?
CardRatings conducts a survey annually to learn what actual cardholders think of their cards. Here are the results:
| Current Scores | Past Scores | |
|---|---|---|
| Overall Score | 77.9 | 79.6 |
| Features Satisfaction | 7.9 | 7.8 |
| Customer Service | 7.9 | 8.2 |
| Website/App Usability | 7.2 | 8.1 |
| Likelihood of Continuing to Use | 7.8 | 8.3 |
| Recommend to a Friend/Colleague | 7.8 | 7.9 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
HOW DOES THE PETAL® 1 CREDIT CARD COMPARE TO OTHER CARDS?
Before you apply for the CardName, it's smart to check out the other cards available to those with fair credit scores. Here's a look at how Petal® 1 compares to other popular options.
Petal® 1 vs. Petal® 2
Petal has two credit cards: CardName and CardName. Both can be used by those with little to no credit history, but the Petal® 2 card is intended for those with better cashflow or a higher credit score. (Petal credit cards are issued by WebBank, Member FDIC)
With Petal® 2, you won't pay any fees whatsoever - no annual fee, no late fee, no returned payment fee. It also offers the potential for a lower APR (RegAPR). As with Petal® 1, you can earn cash back of up to 10% at select merchants, but Petal® 2 also provides rewards on every purchase. Initially, cardholders receive 1% cash back but that can increase to 1.5% with on-time payments.
When you apply for preapproval with Petal, the company will consider you for both cards and select the one that best matches your credit and cashflow profile.
Petal® 1 vs. CardName
The CardName is the type of credit card typically offered to those building their credit. It is a secured card that requires a refundable security deposit of $49, $99 or $200. New cardholders receive a $200 credit limit but can increase that by depositing up to $1,000 more once their account is open.
After six months, Capital One will automatically review accounts to determine whether they are eligible for a higher credit limit. Once a cardholder has established a history of responsible use, the security deposit is refunded and the card upgrades to an unsecured account.
Like Petal® 1, Capital One will preapprove you for a Platinum Secured card without impacting your credit score. It also does not charge an annual fee and has a comparable APR of RegAPR. Both cards have apps with tools to help with money management.
Petal® 1 vs. CardName
Both the Petal® 1 and the CardName are available to those working on their credit, and neither card charges an annual fee. However, while the Petal® 1 is an unsecured card, the Capital One Quicksilver Secured requires a minimum $200 security deposit.
Cardholders with a Capital One Quicksilver Secured account initially get a $200 credit limit, lower than what is available with Petal® 1, but they can increase the limit by making an additional deposit of up to $3,000, based on creditworthiness, prior to activating their card. Capital One will automatically review accounts for credit increases in as little six months.
Another significant difference between the cards are the rewards they offer. Petal® 1 cardholders can earn up to 10% cash back but only from certain merchants. Meanwhile, the Capital One Quicksilver Secured card awards an unlimited 1.5% cash back on every purchase.
IS PETAL® 1 A GOOD CREDIT CARD?
The CardName can be a good choice for those who have limited credit and want an unsecured card. While its rewards are a little lackluster compared to other options, it makes up for that by offering higher credit limits and charging no annual fee.
Survey Methodology: CardRatings commissioned Op4G in September 2023 to conduct surveys among 1,869 cardholders nationwide. CardRatings website analytics from Jan. 1, 2023-Aug. 31, 2023 were used to determine a selection of the most popular cards and additional cards were included to add survey breadth. Responses to each of nine questions were given on a scale of 1-10 and respondents' scores were then averaged under broad topics. To determine the overall score, responses from questions 1-8 were summed and the answer to "How likely are you to recommend this card to a friend, coworker or family member?" was double weighted. “Current Scores” reflect scores from the most recent survey (2023); "Past Scores" reflect scores from the 2022 survey.
Petal® 1 "No Annual Fee" Visa® Credit Card Compared to Other Cash back Cards
Disclaimer: The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.
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