Did you know that the Petal credit card is best for anyone with a fair credit history? In fact It’s one of the only no annual fee cards available to those with fair credit, with the potential to earn up to 1.5% cash back, making it a rare example among unsecured credit cards aimed at building credit. See full details!
Overview of Petal Credit Cards
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is a great option if you’re just starting out with credit.
You get simplicity and transparency: no deposit required. No fees They have good travel partners and may have higher credit limits than you’ll find elsewhere in this category.
Plus, you’ll be incentivized to pay on time to earn rewards. This can help you develop responsible habits for the future.
Highlights of the Petal credit card
- There are no fees of any kind. No late fees. International fees Annual fee or any other fees
- Get up to 1.5% cashback after 12 months of on-time payments.
- 1% cash back on eligible purchases now
- 2% – 10% cashback from selected stores
- Credit limit $500-$10,000
- Variable APR 12.99%-26.99%
- Build credit with tens of thousands of Petal Card members.
- Cash flow technology may help applicants with no credit history get approved.
- Petal’s mobile app helps manage money. Track spending and automatic payments easily
- See if you can get pre-approved in minutes without affecting your credit score.
- Petal reports to all three major credit bureaus.
- No deposit required
- Card issued by WebBank, Member FDIC.
Fees and Interest of Petal credit cards
- Apr 12.99% – 26.99% (variable)
- No introductory APR offered
- The minimum is $500 and can reach up to $10,000.
- Annual fee: $0
- Late Penalty: None
- Foreign purchase transaction fee: $0
- Repayment Fee: None
Card benefits of Petal credit cards
- Uber credit offers through Visa: Register your Visa through your Uber account and automatically earn Uber credit when you use your card to purchase Visa offers.
- Car Rental Collision Insurance: Get secondary rental car coverage for damage or theft to your rental car. When you pay with Petal 1 card and reject the rental company’s collision damage waiver.
- Roadside Delivery: Access to roadside delivery services It is Visa’s pay-as-you-go roadside assistance program.
- Help for lost or stolen cards: Visa can help you get an emergency replacement card and arrange cash delivery for you.
Get rewards of Petal credit cards
The Petal 2 Visa credit card works on a tiered cashback rewards system. that rewards cardholders who pay on time
Cardholders automatically earn 1% cash back on qualifying purchases. And there’s a chance to earn 1.25% cashback after six monthly on-time payments and 1.5% cashback after 12 monthly on-time payments.
In addition to any purchase that you may make that are eligible to win bonus rewards through Petal Offers
Redemption of Petal credit cards
You can redeem any amount of your Petal 2 Card rewards at any time as statement credit. To do so, log into your Petal card account and select “Privilege” and then “Redeem.”
You can also redeem it by calling Petal and requesting that a check be mailed to you. Or receive a minimum initial deposit of $20 into a qualifying checking account.
Advantages of the Petal credit card
no insurance money
Many cards designed for people with limited credit are safe products. This means that those cards require an upfront cash deposit as collateral. This is usually at least a few hundred dollars, which is equal to your credit limit.
You will receive your deposit back when you close your account. (Or upgrade to an unsecured card), but it’s money you have to make on the front end. The Visa® Petal® 2 “Cash Back, No Fees” credit card has no such requirements.
Solid rewards program
The maximum 1.5% cash back rate on the Petal® 2 “Cash Back, No Fees” Visa® Credit Card is the same as the going rate for strong cards like the Capital One Quicksilver Cash Rewards and Chase Freedom Unlimited® Credit Cards.
You’ll need to pay on time for one year to advance to the highest rate. But even a base rate of 1% is better than what you’ll get with most starter cards.
Petal® 2 “Cash Back, No Fees” Visa® credit card holders pay no fees. That means a $0 annual fee, no late fees. No foreign transaction fees or any other fees
You will not be charged a penalty APR if you make a late payment. (Though late payments can affect your credit score.)
The company makes money from merchant transaction fees and interest paid on turnover.
You can avoid interest charges by paying your bill in full every month. Paying on time will keep your credit score in good shape.
The credit limit may be high.
Default cards are known to have low credit limits. But the Petal® 2 “Cashback, No Fee” Visa® Credit Card offers up to $10,000. For those who are eligible to receive the said credit limit (Depends on creditworthiness)
With a secured card Generally, your credit limit is only as high as your insurance amount. Other credit card options They tend to offer lower credit limits.
Worthy traveling companion
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is a travel-friendly card that can help you save money while abroad.
No foreign transaction fees This is typically 1% to 3% per transaction for other credit cards as a Visa card. Therefore it has been widely accepted internationally.
There are some disadvantages to this Petal credit card that you should be aware of.
Disadvantages of the Petal credit card
Rewards from everyday spending
The Visa® Petal® 1 “No Annual Fee” credit card cannot be refunded anywhere except at participating stores. This limits the value you can get from this card. Especially when compared to other cash back credit cards.
It’s also discouraging when you consider that the Petal® 2 “Cashback, No Fees” Visa® Credit Card offers cash back on purchases. and Get up to 2% to 10% cashback with merchant offers.
Petal® 1 Visa® Credit Card “No Annual Fee” likely doesn’t offer the same benefits. This is because it is an option for consumers who are rebuilding their credit. While Petal’s original card wasn’t like that.
Like most credit cards, this Petal card charges a variable APR, which is based in part on your creditworthiness.
However, the APR range is higher than most other cards, including credit cards for customers with bad credit.
We recommend always paying your credit card bill in full to avoid interest. And if you do, the APR doesn’t matter. But if you carry a balance all the time, this card’s high APR will cost you more.
Petal has increased fees before.
Although the Petal® 1 “No Annual Fee” Visa® Credit Card has no annual tax, the Petal website also states that card fees and terms may vary for those who received the card before May 16, 2023.
Certain cardholders with the Visa® Petal® 1 credit card have “no annual fee” prior to this date. I was informed that they would be charged a monthly fee of $8 going forward.
The only way to cancel is to turn off the card. This does not affect new applicants. But it makes you wonder if Petal might do the same thing to more cardholders tomorrow.
How to use flower petals 2:
- Pay your bills on time every month to maintain the highest cashback rate.
- Pay off all of your new balances by the due date each month to avoid the card’s high APR.
- Use the Petal app to build good financial habits by tracking your spending. Due date and interest fees
- Take advantage of the card’s free credit score tracking by checking your credit regularly.
If you’re a responsible spender and have a limited credit history, Petal 2 doesn’t have many downsides.
This is because most credit-building cards offer little or no rewards. Deposit and fees required. or have a low credit limit, Petal 2 is an attractive option.
The fact that the card has no annual fees and other account fees Potential to create a strong reward structure and the ability to qualify for a lower APR than most cards aimed at people working on building credit, the Petal 2 card smells good.
As long as you agree to pay the balance in full by the due date each month. This card can be a good first step in building your credit.