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Petal1 <p class="">Petal credit cards are issued by WebBank, Member FDIC.<br></p> pitches its cards as a way for customers to build credit while earning cashback on their spending. The company offers access to credit and cashback rewards via the Petal® 1 "No Annual Fee" Visa® Credit Card, Petal 1 Rise Visa® Credit Card, and Petal® 2 "Cash Back, No Fees" Visa® Credit Card.
With simple cashback earnings, credit limits ranging from $300-$10,000, and 24/7 customer support, one of the three Petal Visa Credit Cards could provide you with a way to get your credit history started and your personal finances on the right path.
However, you won't be able to apply for a specific card. Rather, Petal will let you know which card you qualify for after you complete a pre-approval application. Each card has its own cashback rates and terms, so what you could end up earning on your spending will depend on which card you're approved for. The Petal® 1 "No Annual Fee" Visa® Credit Card and Petal 1 Rise Visa® Credit Card, for example, only earn cash back at select merchants.
You won't pay an annual fee to carry the Petal® 1 "No Annual Fee" Visa® Credit Card or the Petal® 2 "Cash Back, No Fees" Visa® Credit Card, but the Petal 1 Rise Visa® Credit Card comes with a $59 annual fee.
Rewards for Beginners to Credit Cards
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Petal® 1 "No Annual Fee" Visa® Credit Card
Current Offer
Earn a credit line increase in 6 months with Petal’s Leap program
Annual Fee
$0
Rewards Rate
2% to 10% cash back at select merchants
Key Takeaways
- Petal cards are designed to help you build or rebuild your credit.
- Petal reports your payments to all three credit bureaus.
- Petal 2 offers the most benefits overall, including unlimited 1% cash back on eligible purchases; after 6 on-time payments, earn 1.25% cash back; after 12 on-time payments, earn 1.5% cash back.
- The Petal® 1 "No Annual Fee" Visa® Credit Card and Petal 1 Rise Visa® Credit Card only earn cash back at select merchants.
Who should get a Petal Visa Credit Card?
If you are searching for a credit card but have no credit history or a limited credit history, then a Petal card is a good way to build credit and have access to a credit line for spending. Credit cards can raise your credit score when used responsibly and when you pay your bills on time.
Also, if getting something back for your spending is important, all three of the Petal Visa Credit Cards earn cash back on eligible purchases, though the Petal® 1 "No Annual Fee" Visa® Credit Card and Petal 1 Rise Visa® Credit Card only earn cash back at select merchants.
If you end up getting approved for the Petal 2 card, you may be able to boost those cashback earnings simply by paying your statements. That's because your cashback earnings with the Petal 2 Visa will actually increase from 1% unlimited cash back on all eligible purchases to 1.25% unlimited cash back on all eligible purchases after 6 on-time payments, and again to 1.5% unlimited cash back on all eligible purchases after 12 on-time payments.
Great Starter Card for Those With No Credit
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Petal® 2 "Cash Back, No Fees" Visa® Credit Card
Current Offer
Reports to all three major credit bureaus
Annual Fee
$0
Rewards Rate
Unlimited 1% cash back on eligible purchases; after 6 on-time payments, earn 1.25% cash back; after 12 on-time payments, earn 1.5% cash back
If you are applying for a Petal card, you must be at least 18 years of age and a legal U.S. resident. You will need to provide either a Social Security number or Individual Taxpayer Identification Number, and you must be able to make your monthly payments from a U.S. bank account.
Card basics: Petal 1 vs. Petal 2
The Petal 1 and Petal 1 Rise offer cash back at select merchants, while the Petal 2 offers cash back on a wider range of purchases. The Petal 1 has a $0 annual fee, while the Petal 1 Rise has $59. The Petal 2 has a $0 annual fee.
It's important to note that there is one application for all of Petal's credit cards, so you can't apply for a specific one. You can check which card you qualify for without impacting your credit score, though.
| Petal 1 | Petal 1 Rise | Petal 2 | |
| Card type | Cash Back | Cash Back | Cash Back |
| Credit card issuer | WebBank | WebBank | WebBank |
| Credit card network | Visa | Visa | Visa |
| Annual fee | $0 | $59 | $0 |
| Reward rate | 2% to 10% cash back at select merchants | 2% to 10% cash back at select merchants | Unlimited 1% cash back on eligible purchases; after 6 on-time payments, earn 1.25% cash back; after 12 on-time payments, earn 1.5% cash back
2% to 10% cash back at select merchants |
| Recommended credit score | Fair | Fair | Excellent, Good, Fair |
| Foreign transaction fee | None | None | None |
Petal 1 and Petal 2 benefits and perks
Respectable cash back
With the Petal 2 card, you can earn unlimited 1% cash back on eligible purchases; after 6 on-time payments, earn 1.25% cash back; after 12 on-time payments, earn 1.5% cash back. Earning rewards on the Petal 1 and Petal 1 Rise is much more restrictive. Cardholders can earn 2% to 10% cash back at select merchants with the Petal 1 and 2% to 10% cash back at select merchants with the Petal 1 Rise. Eligible merchants vary throughout the year and may change based on your personal spending habits.
No fees or few fees on the Petal 1 and 2 cards
With the Petal 2 card, you will pay no annual fees, late payment fees, or foreign transaction fees. The Petal 1 likewise has a $0 annual fee and no foreign transaction fees, but you will be subject to late fees. The Petal 1 Rise has an annual fee of $59.
The Petal cards will apply a variable APR to any balance you carry over each month, though.
Higher minimum credit limit than other credit building cards
The Petal cards credit lines range from $300-$10,000. The credit line you receive will be based on your personal creditworthiness. But unlike some other credit cards, more than just your credit score may be considered when determining your credit line.
Apply without a credit score
If you have a credit score, it will be considered during the application process for these cards. But you can potentially qualify for a Petal Visa Credit Card without a credit score or credit history. And even better, the card does not need an upfront deposit like a secured credit card.
Be aware that if you do not have a credit score, you may be asked to link to your bank account during the application process so that your cash flow, income, and spending can be assessed.
Budgeting tool
With the Petal Visa cards, cardholders will have access to the mobile app and the ability to track your spending in the Spending Planner. This makes it simpler for you to set a budget and then compare your spending to the plan you set for yourself.
Build credit for your future
With the Petal cards, you can confidently practice good financial habits and work at building credit. Petal reports to all three major credit bureaus.
Petal 1 and Petal 2 drawbacks
- One application for all cards: You won't know which Petal card you qualify for until you fill out and submit the pre-approval application. On the plus side, you can check your pre-approval without impacting your credit score.
- No intro APR: There is no introductory interest rate offer on the Petal cards. So if you were hoping to avoid interest charges for a few months with a new credit card, the Petal cards would not be a good fit.
- No balance transfers or cash advances: The Petal cards do not allow you to make balance transfers or cash advances.
- Annual fee for the Petal 1 Rise: The Petal 1 Rise has an annual fee of $59.
Earning & redeeming cash back
Earning cash back with a Petal card is relatively simple. Just use the card for your purchases, and pay off your statements on time. Over time, your cashback earnings could grow, and depending on which card you have, your cashback rate could rise as well.
Redeeming the cash you earn is quite simple as well. You can redeem your cash back as either a statement credit or a check (if it's over $20) as long as your account is in good standing. Your cash back will show up in your Petal dashboard and be available to redeem as soon as 7 days after your current billing cycle ends, as long as you have been making on-time payments.
Potential earnings in years one and two
Here's a look how your cash back can add up with the Petal 2 Credit Card. To calculate these values, we used the 1% rewards rate. Your earnings will be higher than this if you make on-time payments and work up to one of the higher cashback rewards rates.
Remember, this is an estimation. The actual value will be determined by how much you spend and in which categories you spend.
Year one earnings: $60
Year two earnings: $60
These values are based on the FinanceBuzz Credit Card Rewards Valuation Model which takes a look at points earned via spending, the welcome bonus, and the annual fee.
Best ways to earn
The best way to earn cash back with a Petal Visa Credit Card is to put as many of your regular expenses on your credit card as possible. If your monthly bills such as cable or cell phone accept credit cards, this is a great way to earn easy cash back without increasing your spending.
| Petal 1 Credit Card | |
| Categories | Rewards rate |
| Select merchants | 2% to 10% |
| Petal 2 Credit Card | |
| Categories | Rewards rate |
| Unlimited cash back on all eligible purchases | 1% |
| Unlimited cash back on all eligible purchases after 6 on-time payments | 1.25% |
| Unlimited cash back on all eligible purchases after 12 on-time payments | 1.5% |
| Select merchants | 2% to 10% |
FAQs
What's the difference between the Petal 1 and Petal 2 cards?
The primary difference between the Petal 1 and Petal 2 is the cashback structure. With Petal 1, you can earn 2% to 10% cash back at select merchants. With Petal 2, you can earn 1% unlimited cash back on all eligible purchases; 1.25% unlimited cash back on all eligible purchases after 6 on-time payments; 1.5% unlimited cash back on all eligible purchases after 12 on-time payments.
Another important difference is the potential credit line. If you qualify for the Petal 2, you could receive a credit limit as high as $10,000. With the Petal 1 cards, the highest credit limit available is $5,000.
Its cash back rate and higher credit line make the Petal 2 the better card overall, but either card could be helpful for establishing or rebuilding your credit.
How do you earn cash back at select merchants?
With the Petal 1 and Petal 1 Rise cards, you can earn cash back with certain merchants. The offers are automatically loaded on your card, so you don't need to worry about finding and adding them.
Petal doesn't provide a lot of information on available offers, but it shows Costco, Shake Shack, Sam's Club, and Adidas as potential merchants as of Aug. 10, 2023.
Does Petal report to the credit bureaus?
Yes, Petal reports to all three major credit bureaus: Equifax, Experian, and TransUnion.
How long does it take to get my Petal Visa Credit Card?
You should receive your Petal credit card within 6-10 business days.
Other cards to consider
If neither the Petal 1 Visa Credit Card nor the Petal 2 Visa Credit Card fits your needs, don't fret. If you have limited or no credit history, you still have other credit card offers to choose from that can help you both save on your purchases and build your credit history.
The Capital One Platinum Secured Credit Card is a secured card, meaning you will need to put down a deposit if you qualify for this card. If you struggle with bad credit, though, this card may be a better fit for you than a Petal Visa Credit Card. If you pay your first five statements on time, you could be automatically considered for a credit line increase, and this card has a $0 annual fee.
The Discover it® Student Cash Back could be better than the Petal cards if you're a student because you can earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases. Also, Discover will match all the cash back you’ve earned at the end of your first year. This means you'll double all the rewards you earn on the bonus categories for the first year you have this card.
Great Starter Card for Those With No Credit
Petal® 2 "Cash Back, No Fees" Visa® Credit Card
Why We Like It
Reports to all three major credit bureaus
See how these cards compare:
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Capital One Platinum Secured Credit Card
- $200 initial credit line after making minimum security deposit
- Consideration for higher credit line as soon as 6 months after account opening
- No annual fee
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Journey Student Rewards from Capital One
- Motivates you to pay your bill on time
- No foreign transaction fee
- No cash back limits
Bottom line
Petal's roster of credit building cards offers potential cardholders the chance to work on establishing a record of responsible spending that doesn't require making a deposit in the way a secured credit card does.
Depending on which card you're approved for, your ability to earn cash back could be limited, but the earn rates offered on qualifying merchants for the Petal 1 and Petal 1 Rise are quite high, and the opportunity to earn up to 1.5% unlimited cash back on all eligible purchases after 12 on-time payments with the Petal 2 puts it in the same ballpark as other credit builder cards.
If you're early on in your credit journey, though, Petal's not your only option. Check out our list of the best credit cards for fair or average credit to learn more.
Lucrative, Flat-Rate Cash Rewards
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Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
