Petal 1 Vs. Petal 2

Neither card offers a welcome bonus, but that’s common for credit cards designed primarily for people with limited or not-so-great credit.

Neither card charges an annual fee, making both a solid option for building credit. However, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card* goes one step further and doesn’t charge any fees at all.

Both cards allow you to earn cash back with select merchants, with offers ranging from 2% to 10%. You can see the merchant offers in your Petal mobile app or online account, but you don’t need to worry about activating them because Petal does that for you automatically.

On top of that, the Petal 2 Card offers cash back on everyday purchases. When you open the account, you’ll start out earning 1% cash back on eligible purchases right away, 1.25% cash back on eligible purchases after making 6 on-time monthly payments, and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments. Plus, earn 2% - 10% cash back at select merchants.

Because the Petal® 1 “No Annual Fee” Visa® Credit Card* doesn’t offer rewards on every purchase, opt for the Petal 2 Card if you qualify for it.

Petal® 1 “No Annual Fee” Visa® Credit Card

2.9

Forbes Advisor created additional star ratings so that you can see the best card for specific needs. This card shines for this use, but overall the star ratings may differ when compared to other cards.

Up to 10% Cash Back

2%-10% cash back at select merchants

Welcome Bonus

N/A

Annual Fee

$0

Regular APR

25.24% - 34.74% Variable

Credit Score

Fair/No Credit

Editor's Take

Those whose credit score is less than perfect may be able to build a stronger credit profile by using the Petal 1 Visa Credit Card responsibly. It’s one of a tiny batch of credit cards aimed at those without great credit that don’t require an upfront security deposit.

Pros & Cons

• No security deposit required
• No annual fee
• Earns rewards

• Rewards only available at select merchants
• No balance transfer option available

Card Details

• $300 – $5,000 credit limits
• Earn a credit limit increase in as little as 6 months
• Earn 2% – 10% cash back at select merchants
• No annual fee
• No foreign transaction fees
• Petal reports to all 3 major credit bureaus

N/A

Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.

In addition to the merchant offers, both cards also offer select benefits through Visa, including an auto rental collision damage waiver, theft coverage and roadside dispatch.

You can also use your card to enroll in Visa Local Offers through the Uber mobile app. This program offers rewards in the form of Uber credits when you make purchases with participating retailers, restaurants, coffee shops and more.

Because these standard benefits are the same for both cards, focus on other features to determine which one is the better fit for you.

Regardless of which card you have, you can redeem your rewards earned with Petal as a statement credit, a paper check or a deposit into your bank account. If you want a check or direct deposit, however, you’ll need to have at least $20 in cash-back rewards in your account, and you’ll need to call Petal to request the redemption.

The Petal 2 Card is rare among credit cards in that it doesn’t charge any fees at all. That includes no annual fee, no foreign transaction fee, no late fee and no returned payment fee. It carries a 18.24% - 32.24% variable APR, which is lower than the Petal 1 Card’s but is still high compared to similar options.

The Petal 1 Card also skips the annual fee and foreign transaction fee, but it does charge a late fee of up to $40 and a returned payment fee of up to $29. However, you can easily avoid those by making your monthly payment on time.

The Petal 1 Card carries a 25.24% - 34.74% variable APR, which is very high, so try to avoid carrying a balance from month to month.

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

2.7

Forbes Advisor created additional star ratings so that you can see the best card for specific needs. This card shines for this use, but overall the star ratings may differ when compared to other cards.

Up to 10% cash back

1% cash back on eligible purchases right away. Up to 1.5% cash back on eligible purchases after making 12 on-timeRead More

Welcome Bonus

N/A

Annual Fee

$0

Regular APR

18.24% - 32.24% (Variable)

Credit Score

Limited/Fair/Good/Excellent

Editor's Take

If you have no credit or limited credit, the Petal 2 Credit Card is our first choice. You can check to see if you’re pre-approved without impacting your credit score (a process that uses a “soft pull”). This card is light on fees, so if you don’t carry a balance you may be able to build a solid credit history with responsible use while limiting your exposure to fees. However, those with missed payments or a bankruptcy on their credit report are unlikely to be approved.

Pros & Cons

• No fees: no annual fee, no foreign transaction fee, no late fee, no over limit fee
• No security deposit
• No credit check required

• No intro APR offer
• No cash advances or balance transfers
• Applicants with a damaged credit report may not qualify

Card Details

• No late, foreign transaction or annual fees
• Earn 1.5% cash back on qualifying purchases after making 12 on-time monthly payments
• Earn 1% cash back on eligible purchases right away
• Earn 2% – 10% cash back on qualifying merchants
• $300 – $10,000 credit limits

N/A

Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.

You’ve Filed for Bankruptcy in the Past 48 Months

You may be able to get approved for the Petal 1 Card if you have not-so-great credit, but Petal states that you’ll be ineligible for either card if you’ve filed for bankruptcy within the last 48 months. In this scenario, you may be better off with a secured credit card, such as the Discover it® Secured Credit Card.

For an opening deposit of $200 to $2,500, the Discover it® Secured Credit Card has a $0 annual fee and earns 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases. Plus, with Unlimited Cashback Match™ - Discover will automatically match all the cash back earned at the end of the first year, effectively doubling your first-year rewards.

You Have Good Credit

The Petal credit cards are primarily designed to help people with limited, poor or even no credit to establish a positive credit history. And while it’s nice to earn rewards while you do so, the cards’ rewards rates can’t compete with top rewards credit cards.

If you have an established credit history and have a good credit score — generally a credit score of 670 or higher — you’ll have more opportunities to get better rewards, perks and even a welcome bonus with other credit cards.

You’re Unwilling To Link Your Bank Account

If you have a credit score, Petal will consider it when you apply. But the company will also ask you to link your bank account, so WebBank can analyze your income and expenses to develop a Cash Score.

If you don’t have a sufficient credit history and refuse to link to your bank account, you may have a hard time getting approved for either card.

Higher Rewards Are Important to You

If you have a limited or fair credit history, you may want to consider a card that offers 1.5% cash back right away without having to show 12 months of good payment behavior first. A card like the Capital One QuicksilverOne Cash Rewards Credit Card, which earns 1.5% cash back on every purchase and 5% cash back on hotels and rental cars booked through Capital One Travel (terms apply), could fit the bill. But be aware that it does come with an annual fee of $39 (rates & fees).

For the most part, the Petal 1 and Petal 2 Cards have a lot in common, but the Petal 2 Card is clearly better based on its rewards program, lack of fees, lower APRs and potential for a higher credit limit.

But ultimately, the right card for you between the two will depend on your eligibility. Before you apply, go through Petal’s preapproval process to gauge your approval odds for both cards. If the Petal 2 Card is within reach, choose that one. If not, you’ll be automatically considered for the Petal 1 Card, which can still provide value as you work on building or rebuilding your credit history.