In this Petal® 2 Credit Card review, we’ll cover who this card is best for, the credit score requirements, fees, alternatives, and more.
This Article Contains:
(Click on a link to jump to the specific section)
- Who is the Petal 2 Credit Card for?
- Petal 2 credit score requirements
- Petal 2 Credit Card fees
- Petal 2 Credit Card rewards
- Pros and cons of the Petal 2 Credit Card
- Alternatives to the Petal 2 Credit Card
Let’s dive in.
Who is the Petal 2 Credit Card for?
The Petal 2 Visa Credit Card is a great starter card for those looking for a modern, rewarding credit card while trying to build their credit score.
It does this by reporting credit activity to each major credit bureau like Equifax, Experian, and TransUnion
This card helps new credit cardholders become responsible credit users with its innovative feature of increasing cash back rates with increased on-time payments. The card also charges no fees.
This makes it a great card for recent college graduates, young adults, or anyone that hasn’t established a positive credit history yet.
Petal 2 credit score requirements
Much like the Petal 1 Credit Card, one of the main purposes behind the Petal 2 card is to help people build credit.
However, where the Petal 1 is specifically for people with average to poor credit scores, the Petal 2 is primarily for those with no or average credit scores.
As a result, you don’t need a credit history when applying for the Petal 2. Rather than basing your application on your previous credit history, the issuer factors in other considerations to arrive at a “Cash Score.”
However, if you do have an existing credit score, it will be factored into the decision.
You must be a US citizen with a valid Social Security number to qualify for the Petal credit card. Petal’s card issuer, WebBank, analyzes your income, savings, and spending and factors that into their cash score. You’ll have to link your bank account to do this.
Next, let’s see what kind of fees you can expect from the Petal 2 Visa card.
Petal 2 Credit Card fees
As its name suggests, the Petal 2 “Cash Back, No Fees” Visa Credit Card includes no fees whatsoever.
Petal’s bank advertiser highlights how there’s no annual fee, no late fee, no foreign transaction fee, and no returned payment fee.
A returned payment fee is a charge levied by a financial institution when a customer bounces a payment.
Typically, cards like this include an annual fee that can range from $30 - $50. If you have multiple cards, this small fee can add up to hundreds of dollars in annual payments just for using a credit card.
Petal makes its money through merchant transaction fees and interest paid on revolving balances. You can avoid these interest charges by paying your credit card off in full every month. Doing so will also ensure your credit score stays healthy.
Petal 2 Credit Card APR
If you’re interested in taking out a loan, Petal includes a variable APR of 12.99% - 26.99%.
However, you can’t make a balance transfer or cash advance.
Frequently exceeding your credit limit will lead to bigger complications than if you had used it up to your given credit limit. In this case, you could consider a secured card.
Petal 2 Credit Card rewards
Petal card owners can earn 1% cash back on eligible purchases, which increases to 1.25% after six on-time payments. After a year of on-time payments, you will earn 1.5% cash back, which is fantastic for a starter credit card.
Further, you can earn up to 10% cash back with selected merchants. You can redeem any amount of rewards for a statement credit. Statement credit is money credited back into your account.
Now, we’ll take a further look at the pros and cons of the Petal 2 card:
Pros and cons of the Petal 2 Credit Card
Let’s take a look at some of the pros and cons of the Petal card:
Here are a few of the benefits of the Petal 2 card:
- No fees - The Petal 2 Visa Credit Card includes no fees whatsoever.
- Credit-building opportunities - Petal shares your credit report with each major credit bureau, namely Equifax, Experian, and TransUnion. This is a key feature that allows users to enjoy gaining rewards and making their creditworthiness more well known.
- No security deposit - A secured card is the most common type of credit building card. The downside is the cost of the security deposit, which often serves as your available credit limit.
The Petal Cash Back Credit Card, however, requires no security deposit. If you don't have the funds to apply for a secured credit card, you can receive this card with a minimum of $500 credit limit.
- No credit history required - While you must be a US resident with a Social Security number, you don’t need a credit history to apply.
- Petal app - The Petal app allows Petal card members to see how much interest they owe any outstanding balances, set and maintain budgets, and track their credit score.
Additionally, each cardholder can see what their next monthly payment will cost and can benefit from earning Uber credits through the card’s Visa Local Offers program.
- High credit limits - Most credit-building cards include a sparse credit limit, typically ranging from $300 - $1,000. In contrast, the Petal 2 Visa offers a credit limit of between $500 and $10,000.
Now, let’s have a look at some of the downsides of the Petal Visa card:
- No welcome bonus - Unfortunately, the Petal 2 Visa Credit Card does not offer any sign-up bonus for obtaining this card. However, this is the norm for credit building cards, such as secured and student cards.
- Sensitive to Prior Bankruptcy - If you’ve filed for bankruptcy in the last 48 months, you aren’t eligible for the Petal credit card. If you were unaware and had your application rejected as a result, the credit card company won’t accept your future application, even if the bankruptcy is well behind you at the time of applying. If this sounds like you, the Petal 1 Card could be a good fit.
- No cash advances - The Petal 2 credit card doesn’t support cash advances.
A cash advance is a short-term loan you can get at a bank or ATM with your credit card. They often incur high penalties and interest but can be helpful if you need cash quickly.
The Avant Card Credit Card, another card designed for those with poor credit which helps you build credit, offers a cash advance - but be aware of the costs. For example the Avant Card card includes an annual fee of up to $59.
Now that we’ve compared the pros and cons of the Petal card let’s look at a few other cards you could look at instead.
Alternatives to the Petal 2 Credit Card
Here are a few other cards for building credit that you could consider:
The Petal 2 Visa Credit Card is an excellent starter card. It’s one of the most rewarding credit cards for those looking to make the most out of average credit or no credit score while attempting to increase it.
The Petal Visa card is beneficial for first-time card users and those who have poor credit management skills. It’s structured so that you get into the habit of becoming more responsible with your spending and repayment actions.
This card also offers a rewards program that is higher than what secured and student cards provide, ensuring that it is a beneficial card to use.
With no fees of any kind, the Petal Cash Back Visa Credit Card should be highly considered by those with fair credit or good credit scores wanting to control their finances while receiving incentives to do so. You can apply for this card online here.