Building credit from scratch presents challenges that most banks don’t make easy to navigate. The go-to solution for those with minimal or nonexistent credit history typically involves secured credit cards.
However, secured cards demand a security deposit that pulls money from your pocket upfront. They frequently carry annual fees, and carrying a balance means interest charges will send your bill soaring.
Companies like Petal Card offer alternatives designed to help those with limited credit build their scores and earn cash back—all without requiring a security deposit.
Sounds too good to be true? Let’s examine this credit card company and determine whether they deliver on their promises in this comprehensive Petal Card review!
What is Petal Card?
You’re likely familiar with established credit cards from American Express and Citi—companies offering their namesake products. While these cards typically provide rich rewards and premium benefits, they’re designed for consumers who already have solid credit histories.
Traditional credit cards remain inaccessible to many people, particularly credit newcomers and those with poor credit. Founded in 2016 by four entrepreneurs, including CEO Jason Gross, Petal was created to bridge this gap.
Their mission focuses on providing credit access to individuals with limited credit histories or lower credit scores.
Your Credit History and Credit Score
Traditional credit card companies base approval decisions primarily on FICO credit scores and credit history from your credit report.
Petal takes a more comprehensive approach to determining creditworthiness, placing greater emphasis on an applicant’s cash flow patterns instead.
This methodology enables them to assess repayment ability more accurately. Using this approach, they aim to approve more applicants for Petal credit cards than traditional methods would allow.
Petal Card Products
Petal Card currently offers two credit card products: the Petal 1 and Petal 2. Let’s explore each option in detail.
Petal 1 Visa Credit Card
Features
- $0 annual fee (late and returned payment fees may apply)
- Credit limits range from $500-$5,000
- Annual Percentage Rate between 19.99%-29.49%
- 2% to 10% cash back at select merchants
- No foreign transaction fees
- AutoPay feature helps avoid late fees
- No balance transfer or purchase intro APR offers
- No sign-up bonus offers
- No penalty APR
Benefits
Additional Petal 1 perks include standard Visa credit card benefits. While these Visa benefits may change or vary over time, the Petal 1 currently provides:
- Cardholder inquiry services
- Zero liability fraud protection
- Pay-per-use 24/7 roadside dispatch assistance
- Lost/stolen card reporting
- Emergency card replacement and cash disbursement
- Visa Local Offers with Uber
Increase your Credit Limit
Petal’s Leap program allows cardholders to earn higher credit limits. Qualification requires making on-time payments for six months while maintaining your credit score within a specified range.
Petal 2 Visa Credit Card
Features
- $0 annual fee
- No other fees (late or return fees waived)
- Credit limits starting at $500-$10,000
- Annual Percentage Rate between 12.99%-26.99%
- 1%-1.5% cash back (plus additional offers)
- No foreign transaction fees
- No balance transfer or purchase intro APR offers
- No cash back bonuses
- No penalty APR
Benefits
Similar to the Petal 1, the Petal 2 includes additional benefits from the Visa network. These benefits may change or vary, but the Petal 2 Visa credit card currently offers:
- Auto rental collision insurance
- Roadside dispatch
- Emergency card replacement
- Emergency cash advance
- Zero liability protection
Cash Back, No Fees
Two standout features distinguish the Petal 2: automatic 1% earnings on all eligible purchases, plus the ability to earn up to 1.5% cash back when you maintain on-time monthly payments.
The Petal 2 card also eliminates late or return payment fees if you happen to miss a payment.
Petal Card Rewards Program
Petal 1 Cash Back no Fees Visa
The Petal 1 lacks a consistent cash back rewards program. However, the Petal Perks program occasionally offers opportunities to earn cash back on eligible purchases from participating merchants.
Earning Cash Back
Similar to Amex Offers and other card-linked programs, you’re automatically enrolled in Petal Perks offers—a nice advantage since others typically require manual activation.
Earnings range from 2% to 10% on eligible purchases at select merchants. Rewards come as “cash back points.”
Each point represents a percentage of a dollar, making each cash back point equivalent to 1 cent.
Since each offer has unique terms and timeframes, consistent reward opportunities aren’t always available with this card.
How to Redeem Cash Back
Cash back points can be redeemed once you’ve accumulated at least $20. Redemption options include statement credit, check, or direct deposit.
Petal 2 Cash Back no Fees Visa
The Petal 2 allows cardholders to automatically earn 1% on all eligible purchases. You can increase this to 1.5% on eligible purchases after making 12 consecutive on-time payments.
You also gain access to Petal Perks offers available on the Petal 1, providing earning opportunities of 2% to 10% on eligible purchases with select merchants.
Earning Cash Back
Upon signing up for the Petal 2, you immediately begin earning 1% on eligible purchases. After six on-time payments, this increases to 1.25%.
With 12 consecutive on-time payments, earnings jump to 1.5%.
Petal Perks offers are automatically loaded into your account, eliminating the need for manual enrollment. You can view participating merchants by sharing your location with the Petal app.
The app displays nearby businesses offering cash back and their respective earning rates.
How to Redeem Cash Back
With the Petal 2, eligible purchase rewards are automatically deposited into your Cash Back Wallet during the next billing cycle. Cash back points can be redeemed as statement credit up to your current balance.
Once you accumulate over $20 in cash back rewards, you can request a check or ACH transfer to your bank account.
Petal Card Pros
Underwriting Favors Credit Builders
Credit scores like FICO aren’t the primary approval factor. Petal’s cash flow technology expands credit card access to those typically denied by traditional methods.
Petal’s algorithm analyzes your income, savings, and spending patterns to inform underwriting decisions. Linking your bank account enables Petal to access this information.
Security concerns are minimal since Petal doesn’t store your login credentials and maintains read-only access to your bank account.
This approach makes these cards excellent options for those lacking extensive credit history who want a fee-free Visa credit card.
No Security Deposit
Neither Petal Visa credit card requires a security deposit to open an account. Most options for credit newcomers are secured cards demanding this upfront payment.
Competitive Rates and Fees
For first-time credit builders, Petal Visa credit cards offer lower rates and fees than typical secured cards. There’s no annual fee or foreign transaction fees, and the Petal 2 even waives late payment and return fees.
Credit-Building Benefits
Both cards report monthly payments to all three major credit bureaus. The Petal 2 allows you to increase cash back rewards through consistent on-time payments.
Petal’s mobile app includes free credit score tracking, allowing you to monitor progress and understand your credit development.
Higher Credit Limits
Initial credit limits on the Petal 1 range from $500 to $5,000—impressive for an unsecured starter card. Even better, you can earn credit limit increases by building positive credit history.
Making timely monthly payments while maintaining the recommended credit score range can boost your credit limit.
Higher limits make maintaining a low credit utilization ratio easier—a major component of your credit scores.
Cash Back Rewards
Few starter credit cards offer cash back rewards without fees. The Petal 2 evolves your rewards as you build credit—six months of on-time payments increases cash back to 1.25%.
After 12 consecutive on-time payments, cash back increases to 1.5%. Beyond rewarding responsible payment behavior, there’s no limit to earnings, and rewards don’t expire as long as your account remains in good standing.
No Foreign Transaction Fees
Either Petal Visa card serves as an excellent travel companion. Without foreign transaction fees, international travel won’t incur the typical 1% to 3% surcharge per transaction.
Using the Visa network ensures widespread merchant acceptance while traveling.
Petal Card Cons
No Intro APR
While Petal cards offer many features typically unavailable to credit builders, neither the Petal 1 nor Petal 2 provides low or 0% introductory APR rates.
No Balance Transfers or Cash Advances
Those seeking balance transfer capabilities or cash advances will be disappointed. Even the more feature-rich Petal 2 lacks these options.
Secured Cards Still Offer Better Approval Odds
Approval odds remain higher with secured credit cards compared to Petal 1 or Petal 2 cards. Those who’ve damaged their credit through bankruptcy or have histories of missed payments face lower approval odds.
Even with decent or fair credit, approval isn’t guaranteed. Since Petal’s algorithms analyze various personal data points, a middle-range credit score may not ensure approval.
No Sign-up Bonuses
Many unsecured credit cards offer bonus cash as sign-up incentives. Even the premium Petal 2 lacks bonus rewards for new cardholders, making these cards unsuitable if that’s your priority.
Fixed Payment Due Date
Those wanting flexibility to change their due date for better payment management will find Petal cards lacking this capability—potentially a dealbreaker for some.
Petal Card Scores
Starter Card – 5/5
These cards excel as first credit card options. With no annual fee, no security deposit, and unique cash flow-based underwriting, you’d be hard-pressed to find better alternatives.
Most starter cards feature low credit limits that make maintaining low credit utilization challenging. The Petal 1 rewards on-time payments and good credit score maintenance with credit limit increases.
The Petal 2 delivers solid 1% earnings that can increase to 1.25% and 1.5% for building strong payment history. These features enable both cards to “grow” alongside your improving credit.
Rewards – 4/5
Many cards in this category offer no reward opportunities whatsoever. Both Petal products give newcomers earning chances. While the Petal 1’s rewards program lacks consistency, it surpasses having no rewards at all.
The Petal 2 proves far more competitive with its 1% starting rate. As you build credit, earnings potential increases. The maximum 1.5% rate competes strongly with cards typically reserved for those with established credit histories.
Benefits – 3/5
Additional benefits on the Petal 1 are fairly standard. Visa Local Offers with Uber, roadside assistance, and rental car collision insurance (secondary coverage) aren’t particularly exciting.
The Petal 2 doesn’t offer significantly more impressive perks. You receive similar Visa benefits plus extras like identity theft coverage, including free ID Navigator enrollment with threat alerts and compromise assistance.
Customer Service – 4/5
While companies like Discover and Citi have operated much longer than Petal (the Petal 2 launched in October 2018), Petal provides solid support.
Petal maintains a comprehensive FAQ and help center on their website, addressing most account management questions.
Additional support is available via email at support@petalcard.com or phone at 1-855-697-3825. Their customer service team operates 24/7, providing assistance whenever needed.
Mobile App – 5/5
Petal’s mobile app is intuitive and user-friendly. You can discover cash back offers through their Petal Perks program by using location sharing to find local deals.
The app identifies subscriptions to popular services like Netflix and Spotify linked to your Petal Visa, showing you how to cancel unused subscriptions easily.
Credit tracking is seamlessly integrated, allowing you to monitor your credit score directly within the app.
Useful budgeting features include a payment calculator that shows exact interest amounts based on your payment, plus budget-setting capabilities with spending tracking against your targets.
Bottom Line
After reviewing these Petal Visa credit cards, you should have a clear sense of whether they suit your needs. If you’re new to credit and have never held a credit card in your name, Petal cards offer superior value compared to secured cards. Qualifying for the Petal 2 is even better, since its cash back rewards compete favorably with many standard unsecured cards.
