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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.
On Oct. 1, 2020, in partnership with card issuer WebBank, Petal launched a rebranded version of the original card: the Petal® 2 Cash Back, No Fees Visa® Credit Card. The Petal® 2 Cash Back, No Fees Visa® Credit Card comes with no fees of any kind, along with a unique application process that can boost the approval odds for consumers with limited credit histories and allow them to potentially qualify for higher credit lines.
If you're looking to earn valuable cashback rewards, avoid all types of fees and most importantly, build credit, look no further than the Petal® Visa® Credit Card.
Petal® 2 Cash Back, No Fees Visa® Credit Card
- No fees whatsoever. No late fee, foreign transaction fee, annual fee, or any-other-kind-of-fee, fee.
- 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
- $500-$10,000 credit limits
- Variable APRs 12.99%-26.99%
- Build credit alongside tens of thousands of Petal card members
- Cash flow technology may help applicants without credit history get approved
- 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
Who is the Petal® 2 Cash Back, No Fees Visa® Credit Card for?
If you're new to the world of credit cards and don't know where to start, Petal has designed this card specially for customers like you.
The Petal® 2 Cash Back, No Fees Visa® Credit Card offers outstanding features for building credit, such as increasing cash back, high credit limits and no fees. And because Petal looks at more than just a credit score, it is possible to get the Petal card with no credit history. With Variable APR between 12.99% - 26.99% and credit limits between $500 to $10,000, the Petal® 2 Cash Back, No Fees Visa® Credit Card is the perfect place to start your credit history.
Currently however, Petal cards are only available to legal U.S. residents of the 50 states with a valid SSN or ITIN.
The Petal® 2 Cash Back, No Fees Visa® Credit Card has no fees
While many credit cards have a long list of pesky fees, the Petal® 2 Cash Back, No Fees Visa® Credit Card takes 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® 2 Cash Back, No Fees Visa® Credit Card
Blue Cash Preferred® Card from American Express
|Late Payment Fee||$0||Up to $40|
|Annual Fee||$0||$0 introductory annual fee for the first year, then $95|
|Foreign Transaction Fee||None||2.7% of each transaction after conversion to US dollars. (See rates & fees)|
For rates and fees of the Blue Cash Preferred® Card from American Express, please click here.
How does the Petal® 2 Cash Back, No Fees Visa® Credit Card work?
The Petal® 2 Cash Back, No Fees 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® 2 Cash Back, No Fees 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:
- Earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants
Since the Petal® 2 Cash Back, No Fees 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® 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.
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.
How does the Petal® 2 Cash Back, No Fees Visa® Credit Card compare to other credit cards?
The Petal® 2 Cash Back, No Fees 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 cashback 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® 2 Cash Back, No Fees Visa® Credit Card vs. Petal® 1 No Annual Fee Visa® Credit Card
On Oct. 1, 2020, Petal also launched the new Petal® 1 No Annual Fee Visa® Credit Card, developed for those with more complicated histories who are interested in building or rebuilding their credit. Once approved, cardholders have access to a high credit limit without an annual fee. While the two cards have a similar premise, these are the main differences:
Petal® 1 No Annual Fee Visa® Credit Card
Petal® 2 Cash Back, No Fees Visa® Credit Card
|Credit limit||Credit limits between $500 to $5,000||Credit limits between $500 to $10,000|
|APRs||Variable APR between 19.99% - 29.49%||Variable APR between 12.99% - 26.99%|
|Fees||$0, no foreign transaction fees
Late fees up to $29 for first late payment, $40 for second late payment
Returned payment fees up to $29
|$0 annual fees, late fees and no foreign transaction fees|
|Rewards||Earn 2% to 10% cash back at select merchants||Earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants
The right choice for you comes down to the type of credit user you are. For those with no credit history or lower credit scores, the Petal® 1 No Annual Fee Visa® Credit Card is catered more for you. Meanwhile, the Petal® 2 Cash Back, No Fees Visa® Credit Card is for those with no credit history or those with average or good credit. Regardless, Petal's preapproval tool will help you gauge which product is your best pick.
Petal® 2 Cash Back, No Fees 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 every purchase, every day starting on Day One. With the Petal® 2 Cash Back, No Fees Visa® Credit 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 $39 annual fee while the Petal® 2 Cash Back, No Fees Visa® Credit Card has a $0 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® 2 Cash Back, No Fees Visa® Credit Card instead.
Petal® 2 Cash Back, No Fees 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® 2 Cash Back, No Fees Visa® Credit Card offers — depending on how high of a cashback rate you're currently earning with the Petal® 2 Cash Back, No Fees Visa® Credit Card. However, the Discover it® Student Cash Back offers 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate, 1% unlimited cash back on all other purchases - automatically These are the categories for 2021:
- Jan-March: Grocery stores, Walgreens and CVS
- April-June: Gas stations, select streaming services, 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 offers the following sign-up bonus: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match. 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® 2 Cash Back, No Fees Visa® Credit Card
Petal® 2 Cash Back, No Fees Visa® Credit Card vs. Chase Freedom Unlimited®
The Chase Freedom Unlimited® is known as one of the best cashback credit cards on the market. Earn 5% cash back on travel purchased through Chase, 3% on dining and drugstores, and 1.5% on all other purchases. The current welcome bonus allows you to Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. And 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® 2 Cash Back, No Fees Visa® Credit Card.
Here at ValuePenguin, we often review the top credit cards with the best rewards programs. But for those starting from the bottom (and want to work their way all the way up), the Petal® 2 Cash Back, No Fees Visa® Credit Card is a fantastic place to start. Its biggest draw is that it is fee-free, unlike the majority of cards on the market today. Petal's emphasis on building and establishing a healthy line of credit — rather than luring you into confusing credit card terms — makes this card worth considering for newbies.
The information related to Discover it® Cash Back has been independently collected by ValuePenguin and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply to American Express credit card offers. See americanexpress.com for more information.