Who is Petal?
Petal’s mission to provide access to fair and transparent credit has made the company one of the most highly funded and fastest growing fintech companies in the United States. The company found early success with their first credit card - known as the Petal 2 Card - that offers cash back rewards that increase when you pay your card back on time. The company recently released a new card - the Petal 1 Card - for Americans with less than perfect credit history.
Who is the Petal 1 Visa Credit Card for?
If you are someone who is looking to rebuild your credit history, the Petal 1 “No Annual Fee” Visa Credit Card is one of the best options out there. Specifically designed for consumers who have no or non-prime credit, the Petal 1 Visa Credit Card offers a limited cash back reward program that is rarely found for subprime cards.
The main benefit of this card (in addition to the app that makes it easy to manage) is the lack of annual fees. Most subprime cards charge ‘application fees’ which you must pay once approved for the card. The absence of any fees easily makes this card one of the least expensive credit cards right now to build credit.
The Petal 1 Visa Credit Card helps you build your credit by automatically reporting to the three major credit bureaus (TransUnion, Equifax, and Experian) on a monthly basis.
Additionally, Petal’s mobile app allows customers to easily track their spending, manage finances, and set up automatic payments. With on-time payments and low credit utilization, you should be able to build your credit score consistently.
The Petal 1 Visa Credit Card is a credit card specifically designed for credit building purposes.
Moreover, credit score is not the only determining factor in the application process. Based on your banking history, Petal also calculates a “Cash Score” to evaluate your creditworthiness that factors in your income-level and number of on-time bill payments.
This holistic evaluation approach not only welcomes consumers with non-prime credit scores to apply, but it also gives them a better chance to qualify for higher credit limits and better rates as they commit to good financial habits.
Since the Petal 1 Visa Credit Card mainly serves as a tool for consumers to build and strengthen their creditworthiness, it does not offer any welcome bonus when you sign up.
While most credit-building cards charge annual, monthly, and foreign transaction fees, the Petal 1 Visa Credit cardholders do not have to pay for any of those expenses. The only fees they are responsible for are the $29 returned payment fees and up to $40 late payment fees. This feature makes the Petal 1 Visa Credit Card easily one of the least expensive credit cards.
Cash Back Rewards
While most credit-building cards do not offer any reward programs, Petal cardholders are automatically enrolled in its Petal Perks program. Cardholders can earn 2% - 10% cash back points at select merchants, which can then be redeemed for a statement credit, ACH transfer, or a check. There is no annual or lifetime maximum on the amount of cash back that cardholders can earn, and the points will not expire as long as the card account remains opened and in good standing.
To search for merchants that offer cash back points for the Petal 1 Visa Credit Card, simply activate the card, download the Petal mobile app and share your current location. The app will then display a map that shows you all the places around your area where you can earn cash back rewards. To earn rewards, simply use your card at these locations.
Benefits and Credits
The Petal 1 Visa Credit Card reports account information and payment history to the three major credit bureaus (TransUnion, Equifax, and Experian) every month, allowing cardholders to build their creditworthiness and enjoy its cash back rewards program simultaneously.
Additionally, the credit card also comes with the Petal mobile app that lets cardholders manage their finances, set budget, track spendings, and automate payments. This feature makes it easy for consumers to build good financial habits and improve their creditworthiness in no time.
Depending on the cardholders’ financial profilecredit scores, the Petal 1 Visa Credit Card offers a credit limit ranging from $500 to $5,000 and a purchase APR ranging from 19.99% to 29.49%. As mentioned above, Petal calculates “Cash Scores” to evaluate cardholders’ creditworthiness, allowing them to have a better chance to qualify for better rates and higher credit limits.
Secured credit cards are the most common type of credit cards for those wanting to improve their credit score, but they come at the expense of placing a security deposit in the amount of credit limit you want.
The Petal 1 Card is unique and does not require any security deposit when you open an account, meaning you can receive this card and access a $500 minimum credit limit without any hidden depository cost.
One of the drawbacks of the Petal 1 Visa Credit Card is that cardholders cannot transfer existing card balances onto the card. Moreover, this credit card charges $29 for returned payment fee and up to $40 for late payment fee.
Consumers should note that these penalty fees and restrictions are standard among other credit building credit cards. These practices are in place to encourage responsible spending habits and credit behaviors.
The Petal 1 Visa Credit Card is able to stand out among the rest. It is rare to find a credit card that offers any cash back reward program, requires low creditworthiness, and has no annual fee. If you are looking for the least expensive way to improve creditworthiness while enjoying a limited cash back rewards program, the Petal 1 Visa Credit Card is one of the best options you can find. You can apply for this card online here.