Our Verdict
For those whose credit score is muddied by missteps, the Petal® 1 “No Annual Fee” Visa® Credit Card* (issued by WebBank) may be a good option. It’s one of a tiny batch of credit cards aimed at those without great credit that don’t require an upfront security deposit. But if your credit is better than meh, you might fare better with another card, including another one offered by Petal.
Pros
- No security deposit required
- No annual fee
- Earns rewards
Cons
- Rewards only available at select merchants
- No balance transfer option available
Highlights
- $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
Introduction
If your credit score reminds you of the early stages of a compost pile, the Petal 1 Visa could be the catalyst you need for improvement. You may not be required to have a credit score to apply. Instead, Petal uses what it calls a “CashScore,” based on your banking and other financial history to determine your creditworthiness. This puts it in a rare category of cards that are available to those with not-great credit but don’t require a security deposit.
The Petal® 1 “No Annual Fee” Visa® Credit Card* is also appealing for its lack of annual fee and potential to earn some rewards via Petal Offers which could snag you 2%-10% cash back at select merchants. It may not be the most rewarding cash-back program around, but it’s rare to find any kind of rewards program on a credit card aimed at those with not-so-good credit.
However, if your credit profile is fair or better know that there are more rewarding card options available that offer rewards on more purchases, including Petal 1’s sibling, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card*.
You should also be aware that you won’t be eligible if you’ve filed for bankruptcy within the past 48 months, even if your finances and credit situation have improved since then.
Related: Credit Cards for Bad Credit
Quick Facts
- No annual fee, account opening or maintenance fees
- Late and returned payment fees apply
- May be available to those with limited or no credit history
- APR range: 25.24% - 34.74% Variable
- No foreign transaction fees
- No welcome bonus
- Balance transfers and cash advances not permitted
Petal 1 Visa Card Rewards
Earning Rewards
Rewards may be earned via Petal’s Cash Offers. The earnings rate is between 2%-10% cash back at select merchants. Merchant offers are automatically loaded to your Petal account. When you make a purchase with a merchant that meets the requirements listed in the offer terms, you’ll earn cash back based on their offer; these funds will be added to your cash-back wallet in the following billing cycle.
Redeeming Rewards
Petal® 1 “No Annual Fee” Visa® Credit Card* rewards can be redeemed in any amount at any time as a statement credit by logging into your card account and selecting “Perks” and then “Redeem.” You can also redeem by calling Petal and requesting a paper check be mailed to you or to receive a deposit to a qualifying checking account starting at a minimum of $20 in earnings.
Rewards Potential
The rewards potential on the Petal® 1 “No Annual Fee” Visa® Credit Card* varies greatly based on your geography and how likely you are to shop with any of the merchants offering rewards via Petal Offers.
Other Petal 1 Visa Card Benefits
The Petal 1 card comes with some basic Visa benefits:
- Roadside dispatch: Get access to roadside dispatch, Visa’s pay-per-use roadside assistance program.
- Lost or stolen card assistance: Visa can help you get an emergency replacement card and arrange for cash to be delivered to you.
- ID Navigator identity theft protections: Enroll in this complimentary service from Norton LifeLock and get credit monitoring and assistance if your identity is compromised.
Fine Print
Interest Rates
- APR: 25.24% - 34.74% Variable
Fees
- Annual fee: $0
- Balance transfer fee: N/A
- Foreign purchase transaction fee: None
How the Petal 1 Visa Card Stacks Up
Petal® 1 “No Annual Fee” Visa® Credit Card* vs. Petal® 2 “Cash Back, No Fees” Visa® Credit Card*
If your credit skews more towards fair than not great, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card* (issued by WebBank), is likely a better choice between the two. The Petal 2 earns rewards on all eligible purchases, starting at 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. That’s a solid rewards rate for a card aimed at those with just fair credit.
The Petal 2 card also doesn’t charge any late or returned payment fees. But again, if your credit is in just-OK shape, you might be more likely to get approved for the Petal 1 card.
Petal® 1 “No Annual Fee” Visa® Credit Card* vs. OpenSky® Secured Visa® Credit Card
If you’ve had a credit misstep in the form of bankruptcy within the last 48 months, you won’t be eligible to apply for the Petal® 1 “No Annual Fee” Visa® Credit Card*. In this scenario your best bet may be to get a secured credit card which offers a less stringent approval process in exchange for an upfront security deposit.
The OpenSky® Secured Visa® Credit Card is an option worth considering. The OpenSky Secured card doesn’t require a credit check and no bank account is required. Your credit limit is equal to the amount of your deposit, starting at a minimum of $200. It does have an annual fee of $35, but the tradeoff is that there’s no credit check. This might make the carrying cost worth it to you.
Petal® 1 “No Annual Fee” Visa® Credit Card* vs. Discover it® Secured Credit Card
The Discover it® Secured Credit Card charges no annual fee and you’ll earn 2% cash back at gas stations and restaurants on up to $1,000 in combined spending each quarter and 1% on all other purchases. Opening deposits start at $200 up to a maximum of $2,500. The amount you deposit will equal your credit limit.
Best of all, Discover automatically matches the cash back you’ve earned at the end of your first year and reviews your account starting at seven months to see if you qualify to have your deposit returned to you.
Compare Petal® 1 “No Annual Fee” Visa With Other Cards
Is the Petal 1 Visa Card for You?
If you’re trying to dig out of a credit hole and you’re dead-set against paying an annual fee, the Petal® 1 “No Annual Fee” Visa® Credit Card* could be a reasonable option. But in exchange for an annual fee or a security deposit you might qualify for a card that earns consistent rewards and may even let you graduate to an unsecured version. This could pay off better in the long run.
If your credit is fair or better, leave this card in the dust in exchange for a more rewarding option, like the Petal 2 Visa card.
Methodology
Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors, including:
- Annual fees
- Welcome bonus offers
- Ongoing earning rates
- Value of individual points or miles
- Included travel or merchant credits
- Additional cardholder benefits
Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.
Read more: How Forbes Advisor Rates Credit Cards
*The information for the following card(s) has been collected independently by Forbes Advisor: Petal® 1 “No Annual Fee” Visa® Credit Card, Petal® 2 “Cash Back, No Fees” Visa® Credit Card. The card details on this page have not been reviewed or provided by the card issuer.
