Our Verdict
If your credit history is just starting to bud, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card* (issued by WebBank) merits a look. The card, which runs on the Visa network, is one of the best of the bunch when it comes to cards aimed at those with less-than-stellar credit.
With the Petal 2 card, you won’t be required to pay an annual fee or put down a security deposit and eligible purchases earn 1% cash-back rewards. With consistent on-time payment behavior, that number will blossom into a healthy 1.5% cash back.
Pros
- No fees: no annual fee, no foreign transaction fee, no late fee, no over limit fee
- No security deposit
- No credit check required
Cons
- No intro APR offer
- No cash advances or balance transfers
- Applicants with a damaged credit report may not qualify
Highlights
- 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
Current Petal 2 Visa Credit Card Offer
- This card does not offer a welcome bonus.
- Earn 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.
Alternatives to the Petal 2 Visa Credit Card
Table of Contents
- Introducing the Petal 2 Visa Credit Card
- Petal 2 Visa Credit Card Quick Facts
- What Is the Petal 2 Visa Credit Card Best For?
- Petal 2 Visa Credit Card Rewards
- Petal 2 Visa Credit Card Cash-Back Benefits
- Petal 2 Visa Credit Card Identity Theft Protection Benefits
- Petal 2 Visa Credit Card Commuter Benefits
- How To Maximize Petal 2 Visa Credit Card Cash Back
- Fine Print
- Alternatives to the Petal 2 Visa Credit Card
- Is the Petal 2 Visa Credit Card for You?
- Methodology
- Frequently Asked Questions (FAQs)
Introducing the Petal 2 Visa Credit Card
Anyone with less than perfect credit would be wise to consider the no annual fee Petal® 2 “Cash Back, No Fees” Visa® Credit Card*. It’s one of the only no annual fee cards available to those with so-so credit that also has the potential to earn up to 1.5% cash back, making it a rare specimen among unsecured credit cards aimed at building credit.
The rewards structure on the Petal 2 card sows the seeds for responsible payment behavior. 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.
However, if you’ve filed for bankruptcy in the past 48 months, you won’t be eligible for a Petal card. If you are rejected for any reason, Petal states that you aren’t eligible to apply again for at least 30 days after receiving its decision.
If your credit history is nonexistent rather than damaged, you’ll have to let Petal link to your primary bank account so they can assess your financial history. That’s not an uncommon practice among issuers that grant credit to those just starting to build up a credit score but be aware that more traditional credit cards won’t require that kind of access.
Petal 2 Visa Credit Card Quick Facts
- No annual fee, account opening or maintenance fees
- Available to those with limited or no credit history
- Credit limits from $300 to $10,000
- 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
- 18.24% - 32.24% variable APR
- No foreign transaction fees
- This card does not offer a welcome bonus
- Balance transfers and cash advances not permitted
What Is the Petal 2 Visa Credit Card Best For?
- A simple cash-back structure with no hoops to jump through
- Helping those with limited credit history to build credit
- Avoiding costs such as annual fees and maintenance fees
- Rebuilding your credit history after some previous missteps
Petal 2 Visa Credit Card Rewards
Earning Rewards
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card* works on a tiered cash-back rewards system that rewards cardholders for making on-time payments.
Cardholders automatically earn 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. This is in addition to any purchases you might make that qualify for bonus rewards via Petal Offers.
Redeeming Rewards
You can redeem your Petal 2 card rewards in any amount as soon as they appear in your Cash Back Wallet in the billing cycle after you’ve made your purchase. You can redeem them as a statement credit by logging into your Petal 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.
Rewards Potential
Forbes Advisor uses data from various government agencies to determine baseline income and spending averages across various categories. Our sample cardholder with fair credit spends $95,450 annually and has $30,974 in expenses that can reasonably be charged to credit cards.
|
Category
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Earning Rate
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Estimated Annual Spend
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Estimated Annual Earnings
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First six months of card ownership
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1%
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$15,487
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$154.87
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|
Second six months of card ownership
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1.25%
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$15,487
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$193.59
|
|
Total: $384.46
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|||
After 12 months of on-time payments, your rewards rate would be bumped up to 1.5% which makes your annual earnings after the first year $464.61.
Petal 2 Visa Credit Card Cash-Back Benefits
Earning cash back is as simple as using your card for your everyday purchases. Any cash back earned will be deposited into your Cash Back Wallet the following billing cycle.
Once you activate your Petal 2 card, you’ll earn 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.
If your earned cash back is over $20, you can call the number on the back of your card to request the money go directly to your bank account or get a check in the mail. Otherwise, you can redeem your Cash Back balance as a statement credit in the app.
Petal 2 Visa Credit Card Identity Theft Protection Benefits
In a partnership with Visa, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card* offers ID Navigator by NortonLifeLock. Your credit file is constantly monitored for fraud and the dark web is patrolled for your information in case of an information leak.
If you are the victim of identity theft, you will get personalized help from a U.S.-based identity restoration specialist to help set things in the right direction. You can also start the process directly on Visa and Norton’s dedicated website.
Petal 2 Visa Credit Card Commuter Benefits
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card* doesn’t have specific commuting benefits, but as a Visa card it offers many benefits including roadside dispatch to all card members. For a set price per service call the program provides:
- Standard towing—up to five miles included
- Tire changing—must have good, inflated spare tire
- Jump starting
- Lockout service (no key replacement)
- Fuel delivery—up to five gallons (plus the cost of fuel)
- Standard winching
How To Maximize Petal 2 Visa Credit Card Cash Back
To take advantage of the full cash back offered by the Petal 2 card, use the specialized offers inside the Petal App.
You can request your cash back come to you in the form of an ACH payment or check. Just save up to at least $20 and you can get the cash that way instead of a simple statement credit.
Transfer Partners
As the Petal 2 card is a cash-back card, there are no transfer partners. Your rewards enter your Cash Back Wallet for you to redeem once they’re earned.
Cash-back partners for bonus cash back change throughout the year and are personalized for you. Besides using your card for your everyday purchases, make sure to check the app to see if there are any larger cash-back offers to take advantage of.
The Petal 2 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.
- Identity theft protections. Enroll for free in ID Navigator to get alerts on potential threats and assistance if compromised.
Fine Print
Interest Rates
- Regular APR: 18.24% - 32.24% (Variable)
- Purchase intro APR: N/A
Petal 2 Visa Credit Card Fees
- Annual fee: $0
- Foreign purchase transaction fee: $0
Credit Limits
- $300 minimum up to $10,000
Alternatives to the Petal 2 Visa Credit Card
Petal® 2 “Cash Back, No Fees” Visa® Credit Card* vs. Petal® 1 “No Annual Fee” Visa® Credit Card*
If you think it might be a reach to qualify for the Petal 2 Card, your best bet is to check out the Petal® 1 “No Annual Fee” Visa® Credit Card*, also issued by WebBank. It, too, has an annual fee of $0, but is designed for those with credit ranging from none to fair.
Unlike the Petal 2, you could get hit with late or returned payment fees. There are no ongoing rewards with the Petal 1 Card but you can access Petal Offers which range from 2%-10% cash back at select merchants.
Petal® 2 “Cash Back, No Fees” Visa® Credit Card* vs. Apple Card*
For those with fair credit who are comfortable using mobile wallets, the Apple Card* may offer a more lucrative rewards structure. For an annual fee of $0, the Apple Card earns 3% back on eligible purchases from Apple including the Apple Store, apple.com, the App Store and iTunes, 2% back on purchases when using Apple Pay and 1% back on all other purchases.
Like the Petal 2 card, it offers bonus cash back at select merchants but unlike the Petal 2 card, the Apple card may not be a fit for credit newbies. It’s also not a fit for Android users because an iPhone with the latest iOS is required to access all the card’s features.
Petal® 2 “Cash Back, No Fees” Visa® Credit Card* vs. Capital One QuicksilverOne Cash Rewards Credit Card
The Capital One QuicksilverOne Cash Rewards Credit Card offers a flat-rate 1.5% cash back on every purchase and 5% cash back on hotels and rental cars booked through Capital One Travel (terms apply) (rates & fees). But it also comes with an annual fee of $39 which means you’d have to spend at least $2,600 annually on the card to break even with the carrying cost. It also carries a high 29.99% variable APR on purchases and balance transfers.
Depending on your creditworthiness, you could qualify for a much lower interest rate with the Petal 2 card. If you sometimes carry a balance, that’s an important consideration.
Is the Petal 2 Visa Credit Card for You?
The Petal 2 card is a solid option compared to similar options for people with fair credit. The card’s lack of annual and other account fees, potential for a strong rewards structure and the ability to qualify for a lower APR than most cards aimed at those working on building their credit makes the Petal 2 card a good choice.
Find The Best Cash Back Credit Cards Of 2024
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 come together to provide a star rating for each individual card.
Read more: How Forbes Advisor rates credit cards
Frequently Asked Questions (FAQs)
How much does Petal increase a credit limit by after six months?
Leap is a program that encourages Petal members to complete tasks that exhibit healthy financial behavior to earn rewards, like a credit limit increase.
Petal uses many factors when determining your credit limit increase, so it varies from person to person. However, you’ll get an increase of at least $50 if you meet the Leap goals.
When does Petal report to credit bureaus?
Petal reports to the three major credit bureaus once per month. Your Petal account activity is reported the first of every month and will include activity from the previous billing cycle. This means that your August account activity will be reported to the credit bureaus September 1. Due to processing time, you may not see an update on your report for several weeks.
What credit score is needed for a Petal credit card?
Petal will look at your credit score but if you don’t have much information, Petal will ask to link to your bank account and view your information to generate a Petal Cash Score. This score is based on factors like your income and the bills you pay.
*The information for the following card(s) has been collected independently by Forbes Advisor: Petal® 2 “Cash Back, No Fees” Visa® Credit Card, Petal® 1 “No Annual Fee” Visa® Credit Card, Apple Card. The card details on this page have not been reviewed or provided by the card issuer.
