Petal Visa® Credit Card Review: A Great Option to Build Credit

Lyle is a writer specializing in credit cards, travel rewards programs, and banking. His work has also appeared on MSN Money, USA Today, and Yahoo! Finance.

This Petal Visa® Credit Card review will tell you why we think it's a great credit card if you have little or no credit history. It's the first card released by Petal, a company that is clearly looking to make waves in the credit card industry. Not only does this fee-free card offer an impressive cash back rate, but you can also get it with zero credit history and no security deposit. Read on to find out more about this card.

Ratings Methodology
Petal Visa® Credit Card

Petal Visa® Credit Card

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On Petal's Secure Website.

Why Apply

People with no or limited credit histories will be hard pressed to beat it. The rewards program and lack of fees are clear standouts in the category.

Top Perks:
  • Earn up to 1.5% cash back
  • No fees
  • Annual Fee: $0
  • Regular APR: 14.49% - 25.49%
  • Intro APR: Purchases: N/A Balance Transfers: N/A
Highlights
  • Up to 1.5% cash back after making 12 on-time monthly payments. 1% cash back on purchases right away
  • No fees whatsoever. No late fee, international fee, annual fee, or any-other-kind-of-fee, fee
  • Build credit alongside tens of thousands of Petal Card members
  • Cash flow technology can help applicants without credit history get approved
  • $500 - $10,000 credit limits
  • Petal's mobile app makes it easy to manage your money, track your spending, and automate payments
  • See if you're pre-approved within minutes without impacting your credit score
  • Petal reports to all 3 major credit bureaus
  • No deposits required.
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Top perks

No credit history required -- The Petal 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.

Up to 1.5% cash back -- The Petal Visa® Credit Card earns 1% cash back to start, but that increases to 1.25% after you've made six on-time payments and 1.5% after you've made 12 on-time payments. These payments don't need to be consecutive. If you make seven on-time payments, miss one, and then make another five on time, you'll start earning 1.5% back.

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. Credit cards for building credit tend to pack in nuisance fees but that isn't the case here.

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

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 -- Many credit cards for consumers with no credit history require a security deposit up front, 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?

Fixed 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.

Suggested credit score

Petal Visa® Credit Card is specifically designed for people with no credit history and/or below average credit, or a FICO® score under 670. If you do have a credit history, Petal will review it during the application process.

However, keep in mind that, although this card is excellent for building credit, it's not intended for rebuilding credit. If you've had problems with missed payments in the past, they could prevent you from being approved.

Alternatives to consider

Discover is the only other major issuer we've found that comes close to matching or beating the Petal Card with various perks.

Discover it® Student Cash Back has a more lucrative cash back program that offers up to 5% cash back in rotating categories you activate each quarter ($1,500 spending cap quarterly), plus a 0% intro APR offer. Importantly, there's no annual fee.

Discover it® Secured also has no annual fee. The difference between this and both of the above cards is that it's a secured credit card. Cardholders are required to make a refundable security deposit to establish a credit line. This is an out-of-pocket cost you won't incur with competitors listed here, but you can expect double cash back in the first year and premium cash back for gas and restaurants.

As of Jan. 07, 2020
Discover it® Student Cash Back Discover it® Secured
Rating image, 4.5 out of 5 stars.
4.5 stars
ToolTip Icon for Star Rating. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Rating image, 4.0 out of 5 stars.
4.0 stars
ToolTip Icon for Star Rating. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Apply Now
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On Discover's Secure Website.

Apply Now
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On Discover's Secure Website.

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Rates & Fees Rates & Fees

Credit Rating Requirement: New/Rebuilding: Clickable tooltip icon for credit rating info.

Credit Rating Requirement: Fair/New to Credit: Clickable tooltip icon for credit rating info.

Bonus: Double cash back in the first year -- that's worth up to 10% back Bonus: Double cash back in the first year
Rewards Program: Earn 5% cash back in rotating quarterly categories you activate ($1,500 quarterly spending cap), 1% back on all else Rewards Program: 2% cash back at gas stations and restaurants on up to $1,000 in purchases each quarter, 1% cash back on all else
Intro APR: Purchases: 0%, 6 months Balance Transfers: 10.99%, 6 months Intro APR: Purchases: N/A Balance Transfers: 10.99%, 6 months
Regular APR: 19.49% Variable Regular APR: 24.49% Variable
Annual Fee: $0 Annual Fee: $0

Highlights:

  • INTRO OFFER: Discover will match ALL the cash back you've earned at the end of your first year, automatically. There's no signing up. And no limit to how much is matched.
  • Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate. Plus, earn unlimited 1% cash back on all other purchases - automatically.
  • Good Grades Rewards: $20 statement credit each school year your GPA is 3.0 or higher for up to the next 5 years.
  • No annual fee. No late fee on first late payment. No APR change for paying late.
  • Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score, number of recent inquiries and more.
  • Freeze It® on/off switch for your account that prevents new purchases, cash advances & balance transfers in seconds.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
  • 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 19.49%.

Highlights:

  • No Annual Fee, earn cash back, and build your credit with responsible use.
  • It's a real credit card. You can build a credit history with the three major credit bureaus. Generally, debit and prepaid cards can't help you build a credit history.
  • Establish your credit line by providing a refundable security deposit of at least $200 after being approved. Bank information must be provided when submitting your deposit.
  • Automatic reviews starting at 8 months to see if we can transition you to an unsecured line of credit and return your deposit.
  • 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases every quarter, automatically. Plus, earn unlimited 1% cash back on all other purchases.
  • Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score
  • INTRO OFFER: We automatically match all the cash back you've earned at the end of your first year.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.

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Apply Now
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On Discover's Secure Website.

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Apply Now
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On Discover's Secure Website.

This card is right for you if:

If your goal is to build your credit, then you should strongly consider applying for the Petal Visa® Credit Card. It doesn't charge any fees, it doesn't require a deposit, and after 12 on-time payments, it earns a great cash back rate. You can't ask for much better than that from a card you can get without any credit history.

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