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- Petal 2 Review
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Issued by WebBank, the Petal® 2 "Cash Back, No Fees" Visa® Credit Card is the first card from Petal, a company that is clearly looking to make waves in the credit card industry. It's one of the more unique cards on the market: 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. We'll explain why we think it's also among the best credit cards if you are building credit in our Petal® 2 "Cash Back, No Fees" Visa® Credit Card review.
2020 Award Winner
Apply Now
On Petal's Secure Website.
Petal® 2 "Cash Back, No Fees" Visa® Credit Card
Apply Now
On Petal's Secure Website.
Great for: No credit history and building credit
Rating image, 4.5 out of 5 stars.
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.
Bottom Line
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.
Rewards
1.5% cash back after making 12 on-time monthly payments. 1% cash back on purchases right away
Annual Fee
$0
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
12.99% - 26.99%, variable
Welcome Bonus
N/A
Highlights
- No fees whatsoever. No late fee, international fee, annual fee, or any-other-kind-of-fee, fee.
- Up to 1.5% cash back after making 12 on-time monthly payments
- 1% cash back on eligible purchases right away
- 2% - 10% cash back from select merchants
- $500 - $10,000 credit limits
- Variable APRs 12.99% - 26.99%
- Build credit alongside tens of thousands of Petal Card members
- Cash flow technology may help applicants without credit history get approved
- 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
- Card issued by WebBank, Member FDIC
2020 award winner
Petal® 2 "Cash Back, No Fees" Visa® Credit Card topped the podium in the following category for The Ascent's 2020 credit card awards:
- Best credit card for building credit
Full Petal 2 review
Top perks
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.
Up to 1.5% cash back: The Petal® 2 "Cash Back, No Fees" 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: Secured credit cards are a typical go-to option for consumers with no credit history, but they 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
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.
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.
The application process for the Petal® 2 "Cash Back, No Fees" Visa® Credit Card is different than that of most other cards. To apply, you need an invite code from Petal. If you don't have one, you can still click the "Apply" button on the Petal website, enter your information, and go through a preapproval process, which doesn't affect your credit score. If Petal preapproves you, it will send you an email with an invitation to officially apply for the card.
Alternatives to consider
- If you want to earn more rewards: The Discover it® Student Cash Back is available to both students and people building credit. It offers up to 5% cash back in rotating quarterly categories that you activate, on up to $1,500 worth of purchases quarterly. Plus, it even has a bonus. Every bit of cash you earn in the first year will be matched when your cardholder anniversary rolls around.
- If you want a secured credit card with a low deposit requirement: Just about anyone can apply for the Discover it® Secured card. This secured card requires a deposit of at least $200, but aside from that, there's a lot to like about it. It offers 2% cash back on up to $1,000 in gas and restaurant purchases each quarter and 1% back on all your other purchases.
As of Jan. 05, 2021
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| Discover it® Student Cash Back | Discover it® Secured |
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Rating image, 5.0 out of 5 stars.
5.0 stars
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, 5.0 out of 5 stars.
5.0 stars
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. |
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Apply Now
On Discover's Secure Website. |
Apply Now
On Discover's Secure Website. |
| Read Full Review | Read Full Review |
| Rates & Fees | Rates & Fees |
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Credit Rating Requirement: |
Credit Rating Requirement: |
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Welcome Bonus: Dollar-for-dollar match of all cash back earned the first year |
Welcome Bonus: Dollar-for-dollar match of all cash back earned the first year |
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Rewards Program: Cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Unlimited cash back on all other purchases - automatically |
Rewards Program: Cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Unlimited cash back on all other purchases - automatically |
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Intro APR: Purchases: 0%, 6 months Balance Transfers: 10.99%, 6 months |
Intro APR: Purchases: N/A Balance Transfers: 10.99%, 6 months |
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Regular APR: 12.99% - 21.99% Variable APR |
Regular APR: 22.99% Variable APR |
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Annual Fee: $0 |
Annual Fee: $0 |
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Highlights:
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Highlights:
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Apply Now
On Discover's Secure Website. |
Apply Now
On Discover's Secure Website. |
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This card is right for you if:
If your goal is to build your credit, then you should strongly consider applying for the Petal® 2 "Cash Back, No Fees" 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.
About the Author
Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. He writes for The Ascent and The Motley Fool, and his work has appeared in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.
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