How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.The Petal 1 Credit Card, issued by WebBank, is a good unsecured credit card for people trying to build or improve their credit. Other cards for building credit usually require you to put down a security deposit of $200. But the Petal 1 Credit Card doesn’t require a security deposit — and it has a $0 annual fee.
This card may be easier to get approved for than other credit cards for bad credit, depending on your finances. Instead of using your credit score and history as the main deciding factor, the Petal 1 Credit Card may take into account your banking and bill payment history along with your credit score.
You can also access a credit limit of $300 to $5,000, which can be a lot higher than secured credit cards’ credit limits since those are usually the amount of a security deposit.
However, this isn’t a good card if you don’t pay your balance off every month. It has a 25.24 - 34.74% Variable, which is an incredibly high max. You can end up paying a lot in interest charges if you don’t stay on top of payments.
Intro Purchase APR
N/A
Regular Purchase APR
25.24 - 34.74% Variable
Intro BT APR
N/A
Regular BT APR
N/A
Annual Fee
$0
Cash Advance Fee
See Terms and Conditions
Foreign Transaction Fee
None
Balance Transfer Fee
N/A
Offers pre-approval with no credit score impact
You can check on Petal’s website to see if you’re preapproved for the Petal 1 Credit Card. Preapproval doesn’t necessarily mean you’ll be approved, but there’s a good chance you will.
Checking for preapproval won’t hurt your credit — but actually applying for the card will trigger a hard credit inquiry, which may bump your credit down a few points. By using the card responsibly long-term, you can work to bring your score back up.
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. As long as you pay on time and keep your utilization ratio low by limiting your spending, you can build a positive credit history and work 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. Other unsecured credit cards targeted toward people with bad or limited credit can charge steep annual fees, so it’s a safer option than most.
Potentially high credit limit
If approved, your credit line will range from $300 to $5,000 based on creditworthiness. This is a potentially high credit limit for a card aimed at people with lower credit scores.
Also, unlike a secured credit card, you don’t have to put down a large deposit to secure the larger credit line.
If you don’t start off with the max credit limit, you can qualify for a credit limit increase if you do both of the following through the card’s Leap feature:
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.
However, if gas and dining are common spending categories for you, consider the Discover it® Secured Credit Card. You’ll earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
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 25.24 - 34.74% Variable based on creditworthiness. The average credit card APR is 23.98%, according to LendingTree research — so even the lowest end is still a pretty high APR.
While that’s in line with other cards for consumers with poor/limited credit, it’s still a best practice to pay off your statement in full every month to avoid incurring interest charges.
The AvantCard Credit Card is another unsecured card that can help you build a good credit history. Like the Petal 1 Credit Card, it reports your payment history and utilization to the credit bureaus, so you’ll build credit as long as you pay on time and don’t max out your card. The biggest plus the AvantCard Credit Card has over the Petal 1 Credit Card is a potentially lower APR of 35.99% Variable.
However, it falls short of the Petal 1 Credit Card in several ways. It charges a $59 annual fee, and you won’t earn rewards with it.
Furthermore, consumers living in Colorado, Iowa, Vermont, West Virginia or Wisconsin can’t get this card. Overall, the Petal 1 Credit Card has more perks and is more accessible than the AvantCard Credit Card.
Both cards are issued by WebBank, Member FDIC.
The Petal 2 Credit Card is similar to the Petal 1 Credit Card, but offers better terms. It doesn’t require a security deposit, there’s a $0 annual fee, and also no late fee, foreign transaction fee or any other type of fee.
It offers a lower 18.24 - 32.24% Variable. The max APR is still high, but its low range APR is great for a credit card for building credit if you qualify for it. It has the same rewards rate as the Petal 1 Credit Card: Earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants — but a much higher credit limit potential of $300 to $10,000.
Just like the Petal 1 Credit Card, the Petal 2 Credit Card may use your banking and billing history on top of your credit score to see if you qualify, which may boost your approval odds over other cards. However, if you have many negative marks on your credit report, you still may not qualify for the Petal 2 Credit Card. Luckily, Petal allows you to prequalify for the card with no impact if to your credit score. If you don’t meet Petal’s criteria for this card, the Petal 1 Credit Card is still a solid option.
The Discover it® Secured Credit Card is one of the best credit cards to build credit, and it’s a better choice than the Petal 1 Credit Card if you’re able to put down a deposit. It has a $0 annual fee, offers cash back on every purchase and the opportunity to graduate to an unsecured credit card with responsible usage.
Unlike the Petal 1 Credit Card, the Discover it® Secured Credit Card requires a security deposit of at least $200. Your credit limit will match your deposit, which could be a con if you’re looking for a high credit limit. However, you can get your deposit back if you close the card or Discover graduates you to an unsecured card.
The Discover it® Secured Credit Card has a much better cash back rewards program. You’ll earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases. Also, Discover automatically matches your cash back at the end of your first year, for new cardholders.
| Credit Cards | Our Ratings | Welcome Offer | Rewards Rate | Annual Fee | Recommended Credit Credit scores ranges may vary. Your individual chance at approval may vary due to factors such as creditors using a particular variation at their discretion | |
|---|---|---|---|---|---|---|
Petal® 1 No Annual Fee Visa® Credit Card*
Learn More
on Petal's secure site |
N/A | Earn 2% to 10% cash back at select merchants | $0 | N/A |
Learn More
on Petal's secure site |
|
AvantCard Credit Card
 Apply Now
on Avant's secure site |
None | Non-rewards card | $59 | Limited/Poor/Fair |
Apply Now
on Avant's secure site |
|
Petal® 2 Cash Back, No Fees Visa® Credit Card*
Learn More
on Petal's secure site |
N/A | Earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants | $0 | N/A |
Learn More
on Petal's secure site |
|
Discover it® Secured Credit Card
Apply Now
on Discover's secure site Rates & Fees |
Discover will match all the cash back you’ve earned at the end of your first year. | Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases. | $0 | Limited/Poor |
Apply Now
on Discover's secure site Rates & Fees |
If you have limited 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 25.24 - 34.74% Variable, because if you carry a balance, you could get hit with some expensive interest charges.
If you’re a consumer with somewhat better credit, 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 any fees.
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 limited/poor/fair 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.
You may be able to qualify for the Petal 1 Credit Card with a bad credit score or even no credit score — but there’s no guarantee you’ll be approved. The card is designed to help you build or rebuild credit, and looks at factors beyond your credit score when reviewing your application.
Petal’s “Cash Score” is a unique method of reviewing credit card applications. The Petal 1 Credit Card issuer takes into account your credit score when you apply, like traditional applications, but also may review your banking transaction history, money earned and money spent each month, as well as bills paid.
So if you’re great at paying bills, you can increase your chances of being approved even without a good credit score.
The select merchants that the Petal 1 Credit Card offers cash back on can vary depending on the cardholder. According to Petal’s terms, the merchants are individualized, so you’ll receive details on the deals that apply to you. Some merchants advertised on Petal’s site include Shake Shack, Crocs, Sam’s Club, Costco, Adidas and more.
The Petal 2 Credit Card has better perks and terms than the Petal 1 Credit Card. The Petal 2 Credit Card doesn’t charge any fees, has a lower APR range and offers a potentially higher credit limit. However, the card is harder to qualify for — so if your credit score is especially low, you may be safer applying for the Petal 1 Credit Card.
The information related to the Petal® 1 No Annual Fee Visa® Credit Card has been independently collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication.
