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Petal® 2 Cash Back, No Fees Visa® Credit Card

Petal<sup>®</sup> 2 Cash Back, No Fees Visa<sup>®</sup> Credit Card

Petal® 2 Cash Back, No Fees Visa® Credit Card

Cash Back
Earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants
Build Credit
Those with thin to no credit file may be accepted based on Cash Flow underwriting alone. Petal card is reported to all 3 major credit bureaus.
No Fees Of Any Kind
No late fee, foreign transaction fee, or annual fee.
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 2 Credit Card best for?

The Petal® 2 Cash Back, No Fees Visa® Credit Card is a rebranded version of the original Petal Credit Card. It’s aimed at helping consumers with limited/average/good credit to establish credit history and build an excellent credit score through responsible behavior. If you’re just starting out on your credit journey, the Petal 2 Credit Card is a great choice for a first credit card. It even offers flat-rate cash back on your purchases.

However, if your credit score is less than stellar, Petal also issues the Petal® 1 No Annual Fee Visa® Credit Card, which is aimed at helping consumers with limited/poor/average credit to rebuild their credit.

The Petal cards differ from competing credit cards by using a “Cash Score” in determining your eligibility whenever possible. You’ll be asked to link a bank account so Petal can use an algorithm to analyze factors such as transaction history, money earned and money spent each month, and bills paid. This makes it easier for consumers who have responsible financial habits, but haven’t had credit before, to qualify for a card.

While many credit cards for people with little or no credit are secured cards, meaning you have to submit a deposit to the issuer, both of the Petal credit cards are unsecured — there’s no deposit required.

Petal 2 Credit Card overview

    • No fees whatsoever. No late fee, foreign transaction fee, annual fee, or any-other-kind-of-fee, fee.
    • Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments.
    • 1% cash back on eligible purchases right away
    • 2% - 10% cash back at select merchants
    • $300 - $10,000 credit limits
    • Variable APRs range from 12.99% - 26.99%
    • No credit score? No problem. If eligible, we'll create your Cash Score instead.
    • See if you're pre-approved within minutes without impacting your credit score.
    • Build credit alongside hundreds of thousands of Petal Card members.
    • Petal reports to all 3 major credit bureaus.
    • No deposits required
    • Card issued by WebBank, Member FDIC
  • Credit needed:
    540 850
    Limited/Average/Good
  • Check your credit score in the mobile app.
  • Use the payments calculator to see how much interest you’ll owe.

Intro Purchase APR

N/A

Regular Purchase APR

Variable APR between 12.99% - 26.99%

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

None

Pros and cons of the Petal 2 Credit Card

Pros

  • Rewards
  • Builds credit history
  • No fees whatsoever
  • Potentially high credit limit
  • Reasonable APR range

Cons

  • Low rewards rate at first
  • Potentially high APR

What we like about the Petal 2 Credit Card

  • Rewards

    Earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants. Some beginner credit cards don’t offer rewards at all, so this is a nice feature.

  • Builds credit history

    Petal reports your activity to Equifax, Experian and TransUnion, the three major consumer credit bureaus. As long as you pay on time every month and keep your utilization rate low, you can build an excellent credit score with this card.

  • No fees whatsoever

    The annual fee is $0, the foreign transaction fee is none and there are no late fees  — or any other kind of fees. Even though there isn’t a late fee, you should always pay on time, as late payments are still reported to the credit bureaus and payment history accounts for 35% of your FICO Score.

  • Potentially high credit limit

    If approved, the credit limit on your Petal 2 Credit Card will range from $300 to $10,000. This is a potentially high credit limit maximum — especially considering the card is aimed at people who are new to credit — and is based on Petal’s analysis of your creditworthiness once you apply.

  • Reasonable APR range

    The Petal 2 Credit Card has Variable APR between 12.99% - 26.99%. We recommend paying off your card in full every month, but if you occasionally need to roll over a balance, having a card with a lower APR can save you money. The lower end of the APR range is competitive compared to many other cards, though you should know there’s no guarantee you’ll qualify for the lower rate until you apply.

What to look out for with the Petal 2 Credit Card

  • Low rewards rate at first

    This card offers the potential to earn up to 1.5% cash back after making 12 on-time monthly payments, a competitive rate for flat-rate cashback cards. However, it starts you out at just 1% back, which is low compared with many cashback cards. For consumers who are new to credit or have thin credit files, though, building a solid credit history should be more of a concern than earning rewards.

  • Potentially high APR

    This card has Variable APR between 12.99% - 26.99%. If you’re approved for an APR at the higher end of that range, be prepared for expensive interest charges if you roll a balance over from month to month.

Alternative credit-building card

Disclosures |
Discover it® Secured Credit Card
Discover it® Secured Credit Card
on Discover's secure site
N/A
22.99% Variable APR
$0
2% cash back at Gas Stations and Restaurants on up to $1,000
  • No Annual Fee, earn cash back, and build your credit with responsible use.
  • Using your secured credit card helps build a credit history with the three major credit bureaus. Generally, prepaid and debit cards can’t do that.
  • Establish your credit line with your tax return by providing a refundable security deposit of at least $200. Bank information must be provided when submitting your deposit.
  • Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.*
  • Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
  • Discover is accepted nationwide by 99% of the places that take credit cards.
  • Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score.
  • INTRO OFFER: 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.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
  • Click "APPLY NOW" to see rewards, FICO® Credit Score terms, Cashback Match™ details & other information.
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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.

 

If you spend a significant portion of your budget on driving and dining out, a card that offers rewards on gas and restaurant purchases might be the best fit for your wallet. One card that rewards these spending categories while also giving credit newbies the opportunity to build positive credit history is the Discover it® Secured Credit Card. This is a secured card, meaning you must submit a security deposit in the amount of your desired credit limit (which can range from $200 to $2,500) to the issuer before getting the card. It earns 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, and charges a $0 annual fee.

There’s also a unique sign-up bonus for new cardmembers. 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. And after eight months, Discover will begin automatic monthly reviews of your account to see if you qualify to get your security deposit refunded and graduate to an unsecured card. Be aware that your behavior on all your credit accounts, not just those from Discover, will impact your eligibility.

If there’s a downside to this card, it’s that it has a high interest rate — a 22.99% Variable APR, to be specific. To avoid incurring interest charges, pay your card off in full every billing cycle.

Compare the Petal 2 Credit Card to other cards

Comparison of four different credit cards
Petal<sup>®</sup> 2 Cash Back, No Fees Visa<sup>®</sup> Credit Card Discover it<sup>®</sup> Secured Credit Card Petal<sup>®</sup> 1 No Annual Fee Visa<sup>®</sup> Credit Card Capital One Platinum Credit Card
Petal® 2 Cash Back, No Fees Visa® Credit Card Discover it® Secured Credit Card Petal® 1 No Annual Fee Visa® Credit Card Capital One Platinum Credit Card
Apply Now
on Petal's secure site
Apply Now
on Discover's secure site
Apply Now
on Petal's secure site
Apply Now
on Capital One's secure site
Welcome Offer
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. N/A No bonus
Rewards Rate
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 Earn 2% to 10% cash back at select merchants Non-rewards Card
Annual Fee
$0 $0 $0 $0
Intro Purchase APR
N/A N/A N/A N/A
Regular APR
Variable APR between 12.99% - 26.99% 22.99% Variable APR Variable APR between 19.99% - 29.49% 26.99% (Variable)
Intro Balance Transfer Rate
N/A 10.99% Intro APR for 6 months N/A N/A
Regular Balance Transfer Rate
N/A 22.99% Variable APR N/A 26.99% (Variable)
Balance Transfer Fee
None 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)* N/A $0 at this Transfer APR
Recommended Credit
Limited/Average/Good Limited/Bad/Poor Limited/Poor/Average Average/Fair/Limited
Card Details
Petal 2 Credit Card Discover it® Secured Credit Card Petal 1 Credit Card Capital One Platinum Credit Card

Is the Petal 2 Credit Card right for you?

The Petal 2 Credit Card, issued by WebBank Member FDIC, is a fine choice for those looking to enter the world of credit and earn a reasonable cashback rate. And since it has a $0 annual fee and doesn’t require a security deposit, it doesn’t cost you anything to carry. You can also take it outside the United States without paying extra thanks to its lack of a foreign transaction fee.

However, if you’ve had problems with your credit before and think you might get denied for the Petal 2 Credit Card, Petal also issues the Petal 1 Credit Card, which might be a better choice.

You can check on Petal’s website to see if you’re preapproved before actually applying for one of these cards. If you’re preapproved, it doesn’t mean you’re guaranteed the card, but it does mean you have a better chance of approval. Plus, checking for preapproval won’t impact your credit score like an application will. Note, however, you will have to submit a full application to get officially approved for the card, which may impact your score.

Apply Now
on Petal's secure site