by Christy Bieber | Updated July 21, 2021 - First published on Jan. 7, 2021
Many or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
Could you get rewarded for paying more than the minimum?
The Petal® 2 "Cash Back, No Fees" Visa® Credit Card made The Ascent's list of the best credit cards in 2020 for a good reason.
You can qualify without a credit history, it offers a reasonable rewards rate, and it's designed to help you build your credit score. That's why it won our 2020 award for the best credit card for building credit. The Petal® 2 "Cash Back, No Fees" Visa® Credit Card also stands out from many of its competitors because it keeps excess charges to a minimum. It does not charge late fees, foreign transaction fees, or other nuisance costs.
The company recently announced a sweepstakes aimed at saving its users money -- and hopefully helping them build smart credit habits to boot. The best part is you're guaranteed to come out ahead even if you don't win the contest.
Tips and tricks from the experts delivered straight to your inbox that could help you save thousands of dollars. Sign up now for free access to our Personal Finance Boot Camp.
By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.
Starting in January, Petal's new contest will reward card users who pay more than their minimum payment. Specifically, those whose payments exceed the minimum will be entered into a sweepstakes to have card balances of up to $500 fully repaid.
Petal will pick a total of 100 winners, including 50 in the month of January and another 50 in the month of February. You'll be entered if you make your payment on time and it exceeds the minimum due.
It's impossible to guess your odds of winning this contest since there's no way of knowing how many cardholders will participate by paying extra. But it's still a great one to enter because it's a smart move to make more than the minimum payment anyway.
Every little extra you send to your card company will reduce your principal balance faster and you'll pay less interest in the long run. As a result, even if you aren't one of the 100 lucky winners who get their debt paid off, participating in the sweepstakes will still put you in a better financial position.
Petal's sweepstakes provides a nice bonus perk to encourage cardholders to pay more than the minimum. But you shouldn't need a contest to motivate you to make this choice. And you don't need to be a Petal cardholder to win big by paying more than your card issuer requires.
No matter what credit card is in your wallet, aim to pay off the balance in full -- or at least pay more than the minimum every month. If you don't, you're dooming yourself to years of debt and potentially tens of thousands of dollars in unnecessary interest costs. And, you can't count on winning a sweepstakes to deal with your card balance -- it's up to you to make a proactive plan to pay it off ASAP.
The good news is, you don't have to make a huge extra payment to make a big dent in principal. Simply paying a little extra each month will cut years off the time it takes you to repay what you borrowed. Make a point to work more money into your budget to deal with credit card debt this year -- whether it earns you a sweepstakes entry or not.
If you have credit card debt, transferring it to this top balance transfer card secures you a 0% intro APR into 2023! Plus, you’ll pay no annual fee. Those are just a few reasons why our experts rate this card as a top pick to help get control of your debt. Read The Ascent's full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2021 The Ascent. All rights reserved.