Petal 2 Credit Card Review: No Fees and No Credit History Required

Issued by WebBank, the Petal® 2 "Cash Back, No Fees" Visa® Credit Card is one of the more unique starter credit cards. It's offered by Petal, a fintech company that's able to approve you for a card based on your banking information. That makes it easier to get than most credit cards, and it also earns cash back rewards. Read our in-depth Petal® 2 "Cash Back, No Fees" Visa® Credit Card review for all the details on its features.

This credit card is a good fit for: People with limited or no credit history looking for a fee-free card to build their credit.

Top perks

Here's a look at the most valuable benefits with this Petal credit card.

No credit history required

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card is ideal for consumers who are new to credit, because you don't need any credit history to get the card. If you have no credit, you can link your bank accounts during the application process. Petal will then use information from those accounts to evaluate your application.

SEE MORE: Best Starter Credit Cards for No Credit

Up to 1.5% cash back

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card rewards you for paying on time. It earns the following rates on all eligible purchases:

• 1% cash back to start
• 1.25% cash back after six on-time payments
• 1.5% cash back after 12 on-time payments

Those payments don't need to be consecutive -- but it's always a good idea to pay on time. While there are some top cash back cards that earn more, 1.5% is a great rate for a starter credit card.

Bonus cash back with Petal Offers

As a cardholder, you're automatically enrolled in Petal Offers. These are merchant-specific deals allowing you to earn between 2% and 10% cash back. Offers like these are a nice way to maximize your rewards while building your credit.

No fees

You won't need to worry about any fees with this card. It doesn't charge an annual fee, late payment fees, foreign transaction fees, or any of those other credit card fees that cost you money.

Note that you will pay interest if you don't pay your entire statement balance, but that's standard with any credit card.

MORE OPTIONS: Best No Annual Fee Credit Cards

Petal app

In addition to this credit card, Petal also offers an application that you can link to your card and most financial institutions. The Petal app includes several features that can help you improve your financial situation, including:

• Estimates of how much interest you'll pay based on your credit card payment amount
• A "Spend Planner" that lets you set a budget and track your spending each month
• A credit score tracker

No security deposit

Secured credit cards are a typical go-to option for consumers with no credit history, but they require a security deposit upfront, which can be tough to manage if money's tight. This card doesn't, so you won't need to pay a thing to get started with Petal.

What could be improved

This Petal card has a couple of notable drawbacks.

Not for rebuilding credit

While the Petal® 2 "Cash Back, No Fees" Visa® Credit Card is great for building credit, it's not designed for rebuilding credit. If you have a low credit score due to late payments, bankruptcy, or other issues, it's unlikely you'll be approved for this card. In that case, you'll need to look at other options.

RELATED: Best Credit Cards for Bad Credit

Can't change payment due date

Petal doesn't give you the option of picking a payment due date, so you're stuck with the date you get. Plenty of other credit cards offer this feature, which can be nice if you want to set your payment due date for right after you get paid. If that's important to you, you may want to explore more credit card reviews.

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card is available to consumers with no credit history or a limited credit history, so you don't need any specific credit score to get it. If you do have a credit history, Petal will review it during the application process.

Petal may ask you to link your bank account during the application process. If so, it will use this to calculate a Cash Score based on the money you make and the bills you pay. Petal uses that Cash Score to help decide whether to approve your application.

Keep in mind that this Petal card is for consumers building their credit for the first time, not for those who have low scores because of negative items on their credit history. Petal offers another credit card for rebuilding credit: The Petal® 1 "No Annual Fee" Visa® Credit Card.

You're new to credit and want to start building your credit score. The Petal® 2 "Cash Back, No Fees" Visa® Credit Card is one of the best credit cards for those with thin credit files. It doesn't charge any fees, there's no deposit required, and after 12 on-time payments, it earns a high cash back rate.

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.