Petal
Strengths
- No fee credit card
- Approval based on other factors besides credit history
- Higher credit limits available
- No security required
- Cash back rewards
Weaknesses
- APR as high as 26.99%
- No intro APR
- Limited eligibility
Petal Visa credit cards offer features and benefits that can help you build credit without using a secured credit card. They have other qualities as well that set them apart from other credit building cards, like lower available interest rates, higher credit limits, and cash back rewards.
In this article, I’ll review the Petal 2 Visa card. I’ll cover the features, let you know how it’s different from Petal 1, and help you determine if the Petal 2 Visa card is right for you.
Petal Credit cards are issued by WebBank, Member FDIC
Table of Contents
What Is The Petal 2 Visa Credit Card?
Petal 2 and its sibling card, Petal 1, are Visa cards designed to help you build credit by bucking the system when it comes to traditional credit card approval methods.
And while both Petal 1 and Petal 2 cards are standout cards, Petal 2 has some attractive features that make it very competitive, even when stacked against non-starter credit cards.
But first, let’s talk about how Petal card approvals work. We all know that there are plenty of starter credit cards to choose from.
However, Petal cards are different from many starter credit cards. They offer features that most starter credit cards don’t. In addition, whereas most credit cards approve or deny you based on your credit score, Petal does things differently.
Learn more about the Petal 2 Visa
How the Petal Credit Card Approval Process Works
Although Petal will consider your credit history if you have one, Petal also uses your banking history to create a Cash Score. Here’s how that works.
In the past, banks owned your banking history. However, regulations regarding personal information have changed in recent years, meaning your banking history is now a bit more transparent. Petal uses your banking information to help determine whether to approve you for a Petal Visa card.
As a borrower, you benefit, because even if you don’t have an excellent credit history, you may still be eligible for a Petal Visa credit card.
Petal Cash Score
This is where your Cash Score comes in. If your banking history shows regular deposits, a healthy savings account, and responsible spending, your Cash Score will be higher.
However, if your banking history shows minimal savings and reckless spending, your Cash Score will be lower.
Petal Visa partners with WebBank to assess your banking history and determine if you qualify for the Petal 2 Visa card.
This is a game-changer because historically if a person had a lower credit score or no credit score, banks were quick to deny them for anything except a secured credit card.
Petal’s Cash Score system evaluates an applicant’s cash management habits via their banking history, giving those who haven’t used credit or have made some recent credit mistakes a chance to redeem themselves.
And with the introduction of the Petal 2 Visa, cardholders can build credit without being subjected to astronomical interest rates and fees.
Petal 2 Visa Credit Card Features
The Petal 2 Visa credit card has several features that make it competitive with conventional credit cards, including:
- Fees: No annual fee, returned payment fee, late payment fee, or any other fee.
- Interest rate: 12.99% to 26.99%, depending on your financial and credit history
- Credit limit: $500 to $10,000 depending on your credit history
Petal 2 offers competitive interest rates on the low end and a potential for a higher credit limit than most beginner or secured credit cards. It will also reward you with cash back for all eligible purchases.
You’ll earn 1% for all eligible purchases made with your Petal 2 card. After six months of on-time payments, the rate jumps to 1.25%.
And after 12 months of on-time payments, you’ll start earning 1.5% cash back on eligible purchases.
You can redeem your earned cash back as a statement credit or ACH transfer to your bank.
Learn more about the Petal 2 Visa
Cash Back Offers
The Petal 2 Visa card also gives you specified cash back offers from select merchants. These offers will appear in your online Petal account and typically reward you with cash back of between 2% and 10%.
Contactless Pay
Petal offers a contactless chip card, allowing you to make purchases without having to touch the card reader.
User Insights
The Petal Insights page helps you understand your spending habits by sharing information, such as how much you’ve spent and in which categories. This can go a long way in helping you tweak your budget so you can increase your net worth and reach your financial goals.
Mobile Pay
Petal currently works with three forms of mobile pay: Samsung Pay, Apple Pay, and Google Pay.
Petal 2 Visa Credit Card Pros And Cons
Here is a list of pros and cons to consider as you decide whether the Petal 2 Visa card is right for you.
Pros
- No fee credit card
- Approval based on other factors besides credit history
- Higher credit limits available
- No security required
- Cash back rewards
Cons
- APR as high as 26.99%
- No intro APR
- Limited eligibility
Learn more about the Petal 2 Visa
Petal 2 vs. Petal 1
The limited eligibility is probably one of the most significant drawbacks of the Petal 2 Visa card. The Petal 1 Visa will accept users with a lower credit score, but the Petal 2 Visa card will not.
You either need to have no credit to get the Petal 2 Visa, or you need to have average to good credit to qualify.
Otherwise, the Petal 2 card is superior to Petal 1 because it carries no fees and earns cash back rewards, up to 1.5%. Petal 2 also has a higher available credit limit ($10,000 vs. $5,000) and a lower available APR.
Who Is the Petal 2 Visa Credit Card Best Suited For?
The Petal 2 Visa card is suitable for a wide range of credit users. The card’s target audience is those with limited or no credit who have a responsible banking history.
However, with features such as zero fees, a competitive APR range, and up to 1.5% cash back on purchase, mainstream credit users can also benefit from a Petal 2 card.
Those who like earning cash back rebates when shopping online and in-store might like the Petal 2 Visa card too.
Although the card won’t pay you the additional cash back rewards (over and above the 1%-1.5%) on every purchase, you could earn between 2% to 10% on specified offers.
If you find the special offers you’re getting through Petal are for products and services you use, you could pad your pockets even more by taking advantage of those offers.
However, if you have a recent negative credit or banking history, you’ll want to apply for the Petal 1 card.
Bonus: When you put in your application, Petal automatically considers you for both cards. If you don’t qualify for Petal 2, you could be approved for the Petal 1 card.
Learn more about the Petal 2 Visa
Petal 2 Visa Credit Card Alternatives
If you’re curious as to what some of the Petal 2 competitors are, we’ve got you covered. Here are some of our favorite choices for Petal 2 card alternatives.
Chime Credit Builder Secured Card
The Chime Credit Builder Visa Card has no annual fee, and there’s no credit check performed when you apply.
You can transfer money from your Chime banking account to your Chime Credit Builder account at any time to determine your Chime Credit Builder credit limit.
Note that you need to have a Direct Deposit totaling $200 or more to be eligible for the Chime Credit Builder credit card.
This card has no rewards, but it is easy to get, and it’s free of annual fees.
Learn more about Chime in our full review.
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. The Chime Visa® Debit Card is issued by The Bancorp Bank or Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. Please see back of your Card for its issuing bank.
Discover It Secured Card
The Discover It Secured credit card offers balance limits between $200 and $2500.
Of course, you have to make a security deposit equal to the credit limit you want to have. However, that deposit can be refunded after you’ve established good usage habits with Discover.
You’ll also earn cash back on your purchases, 1% on all purchases, and 2% on restaurants and gas stations up to $1,000 in purchases per quarter.
There’s no annual fee with the Discover It card; however, you may incur other costs such as late fees.
Final Thoughts on the Petal 2 Visa Card
With the Petal 2 Visa, Petal has created a credit card for those whose credit hasn’t been severely damaged, but who may not qualify for a regular rewards credit card based solely on their credit history. They’ll appreciate Petal’s use of the Cash Score system. We like the low available APR of 12.99%, high available credit limit, and the ability to earn decent cash back rewards for no fee. And if your credit is poor, the Petal 1 Visa is a worthy alternative.
