Petal is a new credit card company that started with the intention to “help people succeed financially while they build their credit history”. With this mission, Petal introduced the Petal® Visa® Credit Card — also known as “the Petal card”.
The Petal Card is a cashback credit card made for those who have no credit history or a less-than-perfect credit history. The card comes with no fees of any kind, along with a unique approval process that can boost the approval odds for consumers with lower credit scores and allow them to qualify for higher credit lines.
Petal® Visa® Credit Card
No Annual Fee
12.99% - 29.49% Variable
- No fees whatsoever. No late fee, international fee, annual fee, or any-other-kind-of-fee, fee
- Up to 1.5% cash back after making 12 on-time monthly payments
- Variable APRs 12.99% - 29.49%
- 1% cash back on eligible purchases right away
- Up to 10% cash back from select merchants
- Build credit alongside tens of thousands of Petal Card members
- Cash flow technology may help applicants without credit history get approved
- $500 - $10,000 credit limits
- Petal's mobile app makes it easy to manage your money, track your spending, and automate payments
- See if you're pre-approved within minutes without impacting your credit score
- Petal reports to all 3 major credit bureaus
- No deposits required
- Card issued by WebBank, Member FDIC
Yes, the Petal® Visa® Credit Card is legit
The Petal® Visa® Credit Card is in fact legit! The Petal credit card is backed by WebBank, which is FDIC-insured. It may look a bit different, but it is a fully functional credit card.
The card offers outstanding features for consumers with lower credit scores, such as increasing cash back, high credit limits and no fees. These features make it a great credit card for building credit.
And because Petal looks at more than just a credit score, it is possible to get the Petal card with no credit history.
The Petal Card has no fees — ever
While many credit cards have a long list of pesky fees, the Petal® Visa® Credit Card does not. The Petal® Visa® Credit Card has taken a firm stance against charging its user fees. (However, there are interest charges if you carry a balance month to month on the card.)
As a comparison, here are a few common credit card fees included on the Blue Cash Preferred® Card from American Express:
Common Credit Card Fees
|Petal® Visa® Credit Card||Blue Cash Preferred® Card from American Express|
|Late Payment Fee||$0||Up to $39|
|Annual Fee||No Annual Fee||$95|
|Foreign Transaction Fee||$0||2.7% (See rates & fees)|
How does the Petal® Visa® Credit Card work?
The Petal® Visa® Credit Card is a bit different in its rewards structure, but it operates just like any other credit card on the market.
The most unique feature of the Petal® Visa® Credit Card is that it incentivizes you to have sound personal finance practices. In the first 12 months of card membership, you will earn the following cash back:
- 1% cash back right away
- 1.25% after 6 months of on-time monthly payments
- 1.50% after 12 months of on-time monthly payments
Since the Petal® Visa® Credit Card is designed to help you build your credit score, the tiered cash back is a great incentive to continue building your financial habits.
Application process for Petal® Visa® Credit Card
The Petal® Visa® Credit Card application process is much different than a traditional credit card application. 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, Petal analyzes it along with other factors using “clever algorithms” to determine if you are approved or not. For example, if you cannot qualify with your credit history, you’ll be asked to link your bank account. 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 brand-new. However, you can rest assured that the Petal Card is safe to use. WebBank, who manages the Petal card, is FDIC-insured. This means that the federal government protects consumers against bank failure and fraud.
Preapproval for the Petal 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 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.
A preapproval will not cause a hard credit inquiry, but rather a soft credit inquiry to see if you can qualify.
How does the Petal® Visa® Credit Card compare to other credit cards?
The Petal® Visa® Credit Card is a unique cashback credit card that differentiates itself from other credit cards that are currently available. With no fees, and a cash back program that incentivizes consumers to pay their bills on time, it is great for someone building their credit.
However, how does it stack up against its competitors?
Petal® Visa® Credit Card vs. Capital One® QuicksilverOne® Cash Rewards Credit Card
If you have average credit, you should consider the Capital One® QuicksilverOne® Cash Rewards Credit Card. With the Capital One® QuicksilverOne® Cash Rewards Credit Card, you earn 1.5% cash back on all your purchases starting on Day One. With the Petal card, you need to make 12 on-time monthly payments to earn the same rate of cash back. Also, the Capital One® QuicksilverOne® Cash Rewards Credit Card comes with travel benefits, such as travel accident insurance, rental car insurance and 24-hour travel assistance services.
On the downside, the Capital One® QuicksilverOne® Cash Rewards Credit Card has a No Annual Fee annual fee while the Petal card's annual fee is No Annual Fee. Also, the Capital One® QuicksilverOne® Cash Rewards Credit Card starts all cardholders off with a small credit line, with the potential to increase that credit line after five on-time monthly payments. If you need a large credit line immediately, you may want to consider the Petal card instead.
Petal® Visa® Credit Card vs. Discover it® Student Cash Back
The Discover it® Student Cash Back offers 1% cash back on everyday purchases, which is equal (or even less) than what the Petal® Visa® Credit Card offers — depending on how high of a cashback rate you're currently earning with the Petal Card. However, the Discover it® Student Cash Back offers 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate. Plus, earn unlimited 1% cash back on all other purchases - automatically. In 2020, the categories are the following:
- Jan-March: Grocery stores, Walgreens and CVS
- April-June: Gas stations, Uber, Lyft and Wholesale Clubs
- Jul-Sept: Restaurants and PayPal
- Oct-Dec: Amazon.com, Walmart.com and Target.com
Even better, for new cardmembers the Discover it® Student Cash Back will match your cash back amount for the first year. So if you earn $300 in cash back your first year, you will receive an additional $300 to match it. If you manage to hit the spending maximum for each quarter's bonus category, you can earn an outstanding rate of cash back, especially in the card's first year. However, if your shopping does not align with these categories, it may be best to go with the Petal® Visa® Credit Card.
Petal® Visa® Credit Card vs. Chase Freedom Unlimited®
The Chase Freedom Unlimited® is known as one of the best cashback credit cards on the market. The card offers a respectable 1.5% cash back on all purchases and Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. Earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year. In addition to great cashback, the Chase Freedom Unlimited® comes with benefits such as trip cancellation/trip interruption insurance, rental car insurance, purchase protection and extended warranty protection.
However, Chase is particular with who they approve for credit cards, so you will likely need a solid credit score to be approved.
If your credit score measures up, consider the Chase Freedom Unlimited® for its long list of benefits and consumer protections. If you are looking for a simple way to build your credit and earn cash back along the way, you may want to select the Petal® Visa® Credit Card.