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Petal® 1 No Annual Fee Visa® Credit Card

Petal<sup>®</sup> 1 No Annual Fee Visa<sup>®</sup> Credit Card

Petal® 1 No Annual Fee Visa® Credit Card

Cash Back
Earn 2% to 10% cash back at select merchants
Build Credit
Cash Score technology may help applicants without credit history get approved. Petal reports to all 3 major credit bureaus
Credit Limit
$300 - $5,000 credit limits
Edited by
Julie Sherrier
Reviewed by
Glen Luke Flanagan
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

Who is the Petal 1 Credit Card best for?

Whether you need to repair credit that’s less than perfect or build credit from scratch, Petal can help you make progress toward your financial goal. The Petal® 1 No Annual Fee Visa® Credit Card, released in October 2020, helps people with less-than-stellar credit rebuild their credit history. There’s also the Petal® 2 Cash Back, No Fees Visa® Credit Card, which is a rebranded version of the original Petal Credit Card and is aimed at applicants with somewhat better credit scores than the Petal 1 Credit Card. Both cards are issued by WebBank, Member FDIC.

The Petal cards differ from competing credit cards designed for those with limited or no credit history by using a “Cash Score” in determining eligibility for applicants. This score is derived through analysis of banking and bill payment patterns, rather than relying on traditional credit scores to determine creditworthiness. For example, applicants link a bank account, which is then fed into an algorithm to review banking transaction history, money earned and money spent each month, as well as bills paid.

Plus, you can check before applying to see if you’re preapproved for a Petal card, which won’t impact your credit score. However, you will be asked for your Social Security number, annual income and housing costs, and other personal information, including your phone number, employment status and income.

Finally, while many cards meant to help consumers establish or repair credit are secured (requiring a deposit be paid to the issuer), the Petal cards are unsecured. If you’re looking to build credit but don’t want to tie up money in a security deposit, Petal may be the right choice for you.

Petal 1 Credit Card overview

    • $0 Annual Fee
    • $300 - $5,000 credit limits
    • Earn a credit limit increase in as little as 6 months. Terms and conditions apply.
    • No credit score? No problem. If eligible, we'll create your Cash Score instead.
    • 2% - 10% cash back at select merchants
    • Variable APRs range from 19.99% - 29.49%
    • See if you're pre-approved within minutes without impacting your credit score.
    • No annual or foreign transaction fees.
    • Build credit alongside hundreds of thousands of Petal Card members.
    • Petal's mobile app makes it easy to manage your money, track your spending, and automate payments.
    • Petal reports to all 3 major credit bureaus
    • No deposits required
    • Card issued by WebBank, Member FDIC
  • Credit needed:
    540 660
    Limited/Poor/Average
  • Check your credit score in the Petal mobile app.
  • Use the payments calculator to understand how much interest you’ll pay.

Intro Purchase APR

N/A

Regular Purchase APR

Variable APR between 19.99% - 29.49%

Intro BT APR

N/A

Regular BT APR

N/A

Annual Fee

$0

Cash Advance Fee

N/A

Foreign Transaction Fee

None

Balance Transfer Fee

N/A

Pros and cons of the Petal 1 Credit Card

Pros

  • Rewards on some purchases
  • Builds credit history
  • $0 annual fee
  • Foreign transaction fee: None
  • Potentially high credit limit for applicants with limited or less-than-stellar credit

Cons

  • Rewards program limited
  • Late and returned payment fees apply
  • Has a high interest rate

What we like about the Petal 1 Credit Card

  • Rewards on some purchases

    Earn 2% to 10% cash back at select merchants. Many cards for consumers who need to rebuild credit don’t offer rewards at all, so this is a nice feature.

  • Builds credit history

    Petal reports to the three major credit bureaus — Equifax, Experian and TransUnion. This means as long as you pay on time and keep your utilization ratio low, you’ll be building positive credit history and working your way to an excellent credit score.

  • $0 annual fee

    Petal does not charge an annual fee for this card, so you don’t have to pay just to carry it.

  • Foreign transaction fee: None

    You can rest easy when traveling outside the United States with the Petal 1 Credit Card, because its foreign transaction fee is none.

  • Potentially high credit limit

    If approved, your credit line will range from $300 to $5,000 based on creditworthiness. For a card aimed at people who are new to or rebuilding their credit, this is a potentially high credit limit.

What to look out for with the Petal 1 Credit Card

  • Rewards program limited

    You’ll only earn cash back on purchases at select merchants, not on all purchases. However, if you’re working to build or rebuild your credit, rewards shouldn’t be your primary focus anyway.

  • Comes with some fees

    While the other credit card from Petal — the Petal 2 Credit Card — doesn’t have any fees, the Petal 1 Credit Card does. You’ll incur a late fee of up to $29 the first time you pay late, and up to $40 for the next time you pay late. There’s also a fee of up to $29 for returned payments. However, if you pay on time and in full every month, you can avoid late fees, as well as interest charges.

  • Has a high interest rate

    This card has a Variable APR between 19.99% - 29.49% based on creditworthiness. While that’s in line with other cards for consumers with limited/poor/average credit, it’s still a best practice to pay off your statement in full every month to avoid incurring interest charges.

Alternative credit-building card

Disclosures |
AvantCard Credit Card
AvantCard Credit Card
on Avant's secure site
N/A
24.99%* Variable APR
$59
Non-rewards card
  • Fast and easy application process
  • No deposit required
  • No hidden fees
  • No penalty APR
  • Report to all three major credit bureaus
  • Zero fraud liability for unauthorized charges
  • Avant branded credit products are issued by WebBank, member FDIC
  • Disclosure: If you are charged interest, the charge will be no less than $1.00
  • Late Fee up to $39
550 700

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.


Like the Petal 1 Credit Card, the AvantCard Credit Card is an unsecured card (meaning it doesn’t require a deposit) aimed at helping consumers build a good credit history through responsible behavior. If you’re trying to repair bad credit, the AvantCard Credit Card might be more accessible than the Petal 1 Credit Card. You can check on Avant’s website if you qualify for the card without hurting your credit score — though there will still be a hard inquiry which will knock your score down a few points once you actually apply.

Be aware the AvantCard Credit Card charges a $59 annual fee, and there’s a 24.99%* Variable APR. Unlike the Petal 1 Credit Card, you won’t earn rewards. Your payment history and utilization will be reported to the credit bureaus, however, so you’ll build credit as long as you pay on time and don’t max out your card. Unfortunately, consumers living in Colorado, Iowa, Vermont, West Virginia or Wisconsin can’t get this card.

Both of these credit cards are issued by WebBank.

Compare the Petal 1 Credit Card to other cards

Comparison of four different credit cards
Petal<sup>®</sup> 1 No Annual Fee Visa<sup>®</sup> Credit Card AvantCard Credit Card Petal<sup>®</sup> 2 Cash Back, No Fees Visa<sup>®</sup> Credit Card Discover it<sup>®</sup> Secured Credit Card
Petal® 1 No Annual Fee Visa® Credit Card AvantCard Credit Card Petal® 2 Cash Back, No Fees Visa® Credit Card Discover it® Secured Credit Card
Apply Now
on Petal's secure site
Apply Now
on Avant's secure site
Apply Now
on Petal's secure site
Apply Now
on Discover's secure site
Welcome Offer
N/A None N/A Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Rewards Rate
Earn 2% to 10% cash back at select merchants Non-rewards card Earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, 1% unlimited cash back on all other purchases - automatically
Annual Fee
$0 $59 $0 $0
Intro Purchase APR
N/A N/A N/A N/A
Regular APR
Variable APR between 19.99% - 29.49% 24.99%* Variable APR Variable APR between 12.99% - 26.99% 22.99% Variable APR
Intro Balance Transfer Rate
N/A N/A N/A 10.99% Intro APR for 6 months
Regular Balance Transfer Rate
N/A N/A N/A 22.99% Variable APR
Balance Transfer Fee
N/A N/A None 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Recommended Credit
Limited/Poor/Average Fair/Limited/Bad/Poor Limited/Average/Good Limited/Bad/Poor
Card Details
Petal 1 Credit Card AvantCard Credit Card Petal 2 Credit Card Discover it® Secured Credit Card

Is the Petal 1 Credit Card right for you?

If you have limited/poor/average credit, the Petal 1 Credit Card is a solid card to help you establish credit history or improve a bad credit score. With a $0 annual fee and rewards on purchases from select merchants, it’s a good starter card. Just be aware of the Variable APR between 19.99% - 29.49%, because if you carry a balance, you could get hit with some expensive interest charges. And if you’re a consumer with somewhat better credit (a limited/average/good credit score), you might consider applying for the Petal 2 Credit Card instead. The Petal 2 Credit Card offers rewards on every eligible purchase and does not charge fees of any kind.

Finally, if your credit is so bad you think you might get denied for either of the Petal credit cards, consider the AvantCard Credit Card instead. It charges a $59 annual fee, but might be more accessible to consumers with fair/limited/bad/poor credit. You could also consider a secured card such as the Discover it® Secured Credit Card, which requires you to submit a security deposit to the issuer in the amount of your credit limit.

Apply Now
on Petal's secure site