Petal 2 Visa credit card review: A good option if you don't have a credit history, with between 1.0% - 1.5% cash back and no fees

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If you have a limited credit history, the Petal® 2 "Cash Back, No Fees" Visa® Credit Card, issued by WebBank, may be easier to qualify for. The card doesn't charge any fees and offers between 1.00% - 1.50% cash back on everyday purchases — but if you've already got a good credit score, you should consider a different rewards credit card with better earnings and benefits.

Review: Is the Petal 2 Visa the best credit card for you?

There are plenty of great cash-back credit cards on the market, but the vast majority are only available to those with good or excellent credit. However, if you have a limited or non-existent credit history — whether you're a college student, recent immigrant, or just new to credit cards generally — there are fewer rewarding options.

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card is worth considering if you're new to credit or have a lower credit score. While it doesn't come with a welcome bonus or fancy benefits, it offers an opportunity to earn rewards for spending and the ability to improve your credit history with responsible use. And it's not a secured card like most cards for bad credit, so you don't have to put down a security deposit to get approved.

You may also have the option to connect your banking history to your application to create a "Cash Score" which can be used to determine your creditworthiness. This is extra helpful if you don't have a credit history at all, and makes the card more accessible to those who are just getting started on their financial journey.

Cardholders start off by earning 1% cash back on all eligible purchases, but that rate increases to 1.25% back after six months of on-time payments, and 1.5% back after 12 months of the same. In addition, the Petal® 2 "Cash Back, No Fees" Visa® Credit Card partners with select merchants to offer extra cash back (2%-10%) on eligible purchases.

It isn't jam-packed with perks, but one benefit stands out: The Petal® 2 "Cash Back, No Fees" Visa® Credit Card doesn't charge fees — at all. There's no annual fee or foreign transaction fees, and you won't pay a late fee or returned payment fee, either. 

That said, if you already have a good credit score, you can likely qualify for better cards that offer welcome bonuses and perks like travel insurance or purchase protection. In addition, some starter credit cards, like the Capital One QuicksilverOne Cash Rewards Credit Card, have other appealing features and stronger earning rates, so be sure to compare your options before you decide to apply.

We're focused here on the rewards and perks that come with each card. These cards won't be worth it if you're paying interest or late fees. When using a credit card, it's important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

How to earn rewards from Petal 2 credit card

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card has an earning structure that rewards cardholders for responsible use. When you're first approved for the card, you'll earn 1% cash back on eligible purchases, which isn't a great rate. But if you make on-time payments for six months, you'll start earning 1.25% cash back, and once you reach 12 months of on-time payments, your rate improves to 1.5% cash back.

In addition, you can earn 2% to 10% cash back at select merchants. Cash back offers are automatically loaded to your account and will appear in your Petal online account or app, and any bonus rewards you earn usually appear by your next billing cycle.

One major downside: Petal's website is hard to navigate, and there doesn't appear to be a way to tell which participating merchants offer bonus cash back unless you already have the card, which makes it tricky to assess whether these deals are worth it for you. You can get an idea of what to expect by checking out Dosh, the third-party provider that runs Petal Card Offers — merchants like Walmart, Instacart, Dunkin', and Sephora are among the 10,000 brands that partner with the service.

How to use rewards 

Petal's app provides a convenient way to view and redeem the cash back you've earned with the Petal® 2 "Cash Back, No Fees" Visa® Credit Card. In the "Perks" section of your online account or app, you can see your current and pending cash-back balances, as well as lifetime rewards earned.

You can redeem cash back for a statement credit in any amount up to your current balance through the app or online, or request an ACH transfer or check (minimum $20) by calling the number on the back of your card. Note that if your account isn't in good standing, you won't be able to redeem rewards.

Petal 2 card benefits and features

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card is light on benefits, but a few features stand out.

Petal mobile app

The Petal mobile app can be a great tool for keeping track of your finances and progress in improving your credit history. Along with viewing your card account balance, payment due dates, and rewards, you can set budgets and monitor your credit score. The app also comes with a handy tracking feature that keeps an eye on any recurring subscriptions charged to your card.

Petal Leap program

If you're new to credit, Petal may start you off with a smaller credit limit on your new card — initially anywhere from $300 to $10,000, depending on your creditworthiness. A low limit can be frustrating if you have larger purchases you want to make, but if you use your card and manage your finances responsibly, you may qualify for a credit line increase in as little as six months.

Petal's Leap program gives eligible cardholders the chance to increase their credit limit by reaching certain goals:

• Goal 1: Pay at least your minimum payment or at least 15% of your monthly statement balance (whichever is greater) on time for six consecutive billing cycles in which a payment is due (called a "payment streak")
• Goal 2: Don't let your VantageScore drop by more than 25 points for six consecutive billing cycles in which a payment is due (if you don't initially have a VantageScore, it will appear in your Leap dashboard once it's available, usually within three months of making payments on your credit card)

If you accomplish both of these goals, you will be considered for a credit limit increase, although an increase is not guaranteed. A higher credit limit gives you more spending power, and can also potentially improve your credit score by increasing the total amount of credit you have available.

Pre-approval without impacting your credit score

Petal allows you to find out if you're pre-approved for its cards by entering your personal details on its website, and it won't hurt your credit score to do so.

Most other banks make you apply outright and perform a hard inquiry (also called a credit pull) before deciding to approve you. If you don't qualify, you'll still take a (small) hit to your credit score, which is an extra letdown.

Card freeze 

If you misplace your Petal® 2 "Cash Back, No Fees" Visa® Credit Card, you can temporarily freeze it so it can't be used through the "Settings" page of your online account. You'll have the option to unfreeze your card if you find it, or, if you think it's permanently lost or stolen, you can call Petal at 855-697-3825 immediately after freezing it to receive a replacement. 

Fees and costs

As mentioned, the Petal® 2 "Cash Back, No Fees" Visa® Credit Card doesn't charge an annual fee, late payment fees, or returned payment fees (the card doesn't allow balance transfers or cash advances, so you won't see fees for those, either). It also doesn't add foreign transaction fees, which makes the card a good companion on your travels abroad.

There's no intro APR offer, and the regular purchase APR is Petal® 2 "Cash Back, No Fees" Visa® Credit Card, so it's not a good choice if you need to carry a balance.

Comparison: Petal 2 vs other starter cards

Petal 2 vs other cash-back credit cards

Petal 2 credit card frequently asked questions (FAQ)

Is the Petal 2 credit card good?

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card is good for certain types of people — namely, those who are new to credit or who have a limited credit history. It's a decent beginner card to start with as a stepping stone as you work to improve your credit score, and unlike some other starter cards, it actually earns rewards.

However, if you've already got a decent credit score, there's no real reason to consider the Petal® 2 "Cash Back, No Fees" Visa® Credit Card, because there are other, mainstream cards that offer better rewards and benefits.

Is it easy to get the Petal 2 Visa?

This card can be easier to get approved for because you may opt to include your banking history with your application to assess your creditworthiness if you have a limited credit history. It includes your income, savings, and spending history to create a "Cash Score" to allow more people to qualify.

That said, if you already have a credit report and it shows a bankruptcy or a history of missed payments, you may not be approved.

Is Petal a real credit card?

Don't worry, the Petal® 2 "Cash Back, No Fees" Visa® Credit Card is legit! It's a Visa card issued by WebBank, and you can use it anywhere Visa cards are accepted.