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Home Credit Cards Credit Card Reviews Petal® 2 Visa® Credit Card Review

Petal® 2 Visa® Credit Card Review

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The Petal® 2 "Cash Back, No Fees" Visa® Credit Card lives up to its name and is an excellent option for those hoping to build or improve their credit. Issued by WebBank, Member FDIC, the Petal 2 is Petal's most ingenious card so far.

With an unconventional means of assessing creditworthiness, no fees across the board, no security deposit required and a solid rewards plan, many searching for their next credit card will find the Petal 2 Credit Card appealing.

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card just may be the card for you, if you’re a fan of building your credit, cashing in on rewards, and sidestepping a security deposit all at the same time.

Petal 2® “Cash Back, No Fees” Visa Credit Card Key Features

Petal 2 Visa Full Card
  • Annual Fee: None
  • Security Deposit: None
  • Foreign Transaction Fee: None
  • APR: 12.99% to 26.99% Variable APR*
  • Penalty APR: None
  • Credit Limits: $500 to $10,000*
  • Credit Needed: None, Limited, Fair, Good, Excellent
  • Credit Companies Reported To: Equifax, Experian, and TransUnion
  • Rewards: Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments
    • From the start, you earn 1% cash back on eligible purchases
    • After making six (6) on-time monthly payments, you earn 1.25% cash back on eligible purchases
    • Then after making 12 on-time monthly payments, you earn 1.5% cash back on eligible purchases
    • You can also earn 2% - 10% bonus cash back at select merchants
*Based on creditworthiness

Apply Now for the Petal 2® “Cash Back, No Fees” Visa Credit Card

Pros and Cons

Pros

  • Credit score isn’t the only factor when being evaluated
  • No fees whatsoever: no annual fee, late fee, over-limit fee, foreign transaction fee, etc.
  • No security deposit is required
  • You may qualify for a higher credit limit than with other similar cards
  • Solid reward structure that rewards good credit habits with increased cashback

Cons

  • No introductory APR
  • Cash advances and balance transfers are not available with this card
  • No option to change your payment due date
  • No bonus rewards for spending in certain categories

Overview of Petal 2 Credit Card

The Petal 2 Credit Card brings some impressive benefits to the table in comparison to similar cards in its class. As an unsecured credit card, the Petal 2 card enables its cardholders to circumvent a security deposit while establishing their credit history. On top of that, there is no annual fee, or any fee at all for using the card, features that many other credit-building cards don't deliver on.

Furthermore, the tiered-rewards structure incentivizes responsible credit card use by increasing the cash back rate after consecutive on-time payments. Cardholders earn 1% cash back on eligible purchases from the start, but that becomes 1.25% cash back after six months of paying the bill on time. A Petal 2 card user could graduate to 1.5% cash back by continuing to pay their bill on time for another six months. Though the cash back maximum is 1.5%, and other cards may tout higher rates, keep in mind "no fees" is hard to beat.

Be that as it may, the Petal 2 card is not the perfect option for everyone, and some may not even be able to access it. If you tend to carry a balance month to month, you might benefit from a card that has a lower APR. The interest charged month over month could be higher than what you make in rewards, taking away some of the bang for your buck. In addition, a previous bankruptcy might get in the way of your eligibility.

Petal 2 Credit Card Highlights

  • 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
  • $500-$10,000 credit limits
  • Variable APR 12.99%-26.99%
  • Build credit alongside tens of thousands of Petal card members
  • Cash flow based underwriting technology may help applicants with limited or 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 companies
  • No deposits required
  • Card issued by WebBank, Member FDIC

Reasons for Getting the Petal® 2 "Cash Back, No Fees" Visa® Credit Card

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card has several features that make it competitive for those with no credit history or poor to fair credit.

Evaluated on More than Credit Score

If you’re looking to be more than a credit score to potential banks, the Petal 2 Visa Credit Card might be the right choice for you. The Petal 2 Credit Card is designed for those whose credit history is non-existent or needs some work. Potential cardholders can be assessed not simply by their credit score but on other factors such as income, spending and savings. This gives those with no or fair credit history a better chance to demonstrate creditworthiness and be approved for the card.

No Fees

The Petal 2 Credit Card has no fees whatsoever: no annual fee, late fees, over-limit fees or fees for foreign transactions. This makes it a great credit card to use while traveling abroad, considering that many cards have foreign transaction fees of 1% to 3% on all foreign transactions. We advise you not to get too carried away with the lack of fees. While it is true that the Petal 2 Credit Card won’t even charge you a penalty APR for being late on a payment, late payments will likely negatively impact your credit score.

No Security Deposit

A security deposit for a credit card is often required for cards designed to build credit for those without any or with poor credit. In these cases, potential cardholders have to deposit an amount that will determine their spending limit, thereby securing the card for the lender. This benefits the bank but can be difficult to manage for those without a lot of cash flow, resulting in low credit limits. The Petal 2 Visa Credit Card does not require this, giving it an edge over other cards like it.

Higher Credit Limit than Similar Cards

While many cards for users with lower credit depend on security deposits or can otherwise have lower credit limits, the Petal 2 Visa Credit Card allows cardholders to have a credit limit as high as $10,000 based on creditworthiness. If you don’t qualify for the highest limit, the Petal 2 Credit Card offers a path for you to still potentially be approved for an increase. If eligible, you will have to 1) pay the greater of your minimum payment or 15% of your monthly statement balance by the payment due date, for six (6) consecutive months and 2) ensure your Vantage Score doesn’t fall below 25 points of the credit score you had when you applied for the card. If you can fulfill these steps, then you can be considered for a higher credit limit in due time.

Rewards Structure

The Petal 2 Credit Card’s reward structure is a huge benefit for the card. It is designed to encourage cardmembers to improve their creditworthiness, which is great for those with no or fair credit, and a boon to all cardmembers. In the beginning, cardmembers will earn 1% cashback on eligible purchases when they use their Petal 2 card. Once they've made six months’ worth of on-time payments, that percentage will bump up to 1.25%. After cardmembers have hit a year of on-time payments (12 months), it will jump up to 1.5%. Cardmembers can also earn additional cashback by spending at select merchants with current Petal Offers, some earning up to 10% cashback.

Reasons for Getting a Different Card

While the Petal® 2 "Cash Back, No Fees" Visa® Credit Card may have its fair share of advantages, it does fall short in some areas.

No Special Introductory APR

Though some credit cards offer special rates at the beginning of card membership, the Petal 2 Credit Card does not. The APR for the card is variable and ranges from 12.99% to 26.99% depending on the creditworthiness of the cardmember when they applied. With the absence of an introductory APR, you will want to avoid carrying a balance from day one to save on interest.

Limited Bonus Rewards

With many cards designed for building credit, bonus rewards are off the table because the cards are more focused on improving your credit than extra benefits. While the Petal 2 Visa Credit Card does give you flat-rate cash back on your spending, it does not offer other bonus rewards that might be appealing to some users such as travel bonuses. Also, there is no special rewards rate for spending in a particular category. Aside from the cash back rate on eligible purchases, cardholders looking to earn more would have to look into spending at select Petal Card merchants.

No Cash Advances

For many credit cardholders, cash advances are an appealing draw. They allow you to take cash directly from your credit account for a fee and a possible interest increase for the balance on the “loan”, essentially acting as a short-term cash loan. The Petal 2 Visa Credit Card does not offer this service.

No Option to Change the Due Date

Although some credit cards will allow you to adjust the due date to better suit your pay schedule or other needs, the Petal 2 Visa Credit Card does not have that option. Your minimum payment will be due at the same time each month and that date is set with your first bill.

The Bottom Line

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card is a compelling option for those who have no or fair credit history and are looking for a quality card. Between the rewards, absence of fees, lack of a security deposit and potentially high credit limit, the Petal 2 credit card is quite the deal. If you already have good credit, then you can likely find another card that better suits your rewards preferences. However, if you’re building yours, this card can be a handy tool for getting there.

Apply Now for the Petal 2® “Cash Back, No Fees” Visa Credit Card

Frequently Asked Questions

What credit score do you need for a Petal 2 credit card?

You do not need a credit score to apply for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card, but having a damaged credit history could be a reason in which you are denied. The card is intended for individuals with fair-to-good credit or cash flow.

Can I Pre-Qualify for a Petal 2 credit card?

Yes, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card application has a pre-approval process that performs a soft credit check that does not affect your credit score. If you are pre-approved, you can submit an official application which would call for a hard credit inquiry that may likely lower your score.

Can You Qualify for the Petal 2 credit card with no credit?

You do not need credit to qualify for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card. Instead, you will need sufficient cash flow. Petal’s technology takes into account your income, savings and spending to determine your creditworthiness.

Is the Petal 2 credit card for bad credit?

If you have damaged credit, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card may not be for you. It is a card tailored for those who have fair-to-good cash flow or credit history.

Does Petal 2 credit card require a credit check?

Yes, the official application for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card requires a hard credit inquiry. Keep in mind though that you will have to pre-qualify for a card before you can get to the official application. Do note, being pre-qualified for the card does not automatically mean that your official application will be approved.

Is the Petal 2 credit card legit?

Yes, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card is legit. The card is issued by WebBank, an FDIC-insured bank in Salt Lake City, Utah. Petal's cash flow underwriting technology may take into account other factors besides an applicant's credit history to determine eligibility. Legal U.S. residents who are at least 18 years of age may apply.

Is Petal 2 a secured credit card?

No, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card is not a secured card. Secured credit cards typically require a security deposit and tend to have lower credit limits. The Petal 2 card does not have a security deposit and has a high credit limit in comparison to most secured cards.

What is the Petal 2 credit card Limit?

The Petal® 2 “Cash Back, No Fees” Visa® Credit Card has a credit card limit ranging from $500 - $10,000. The amount you are initially approved for depends on your creditworthiness.

What's the difference between the Petal 1 and Petal 2 credit cards?

Both the Petal® 1 “No Annual Fee” Visa® Credit Card and the Petal® 2 “Cash Back, No Fees” Visa® Credit Card are for individuals looking to improve their credit score and provide the opportunity to earn 2% - 10% cash back on purchases made with select merchants, but there are noteworthy differences. Petal 1 is geared towards people with lower credit or cash flow, whereas Petal 2 is for individuals with higher credit or cash flow. In addition, the Petal 2 offers exclusive perks not offered by Petal 1, such as no fees at all and cash back on eligible purchases.

Is Petal 1 or 2 better?

The Petal 2 Credit Card offers more user-friendly features than the Petal 1. Petal 2 cardholders are not charged fees at all, and they get to earn cash back on eligible purchases made with the card. The Petal 1 card does have fees and does not earn cash back on eligible purchases. Regardless, you can earn 2% - 10% cash back on purchases made with select merchants with both cards.

Is the Petal 2 credit card good?

The Petal 2 Credit Card is a top card amongst credit-building, starter cards. The Petal 2’s “no fees” policy alone makes it competitive for any credit card, and the cash back rewards are an even bigger bonus. For those getting started with credit or looking to improve it, the Petal 2 can be a great option for winning with rewards while building it up.

Does the Petal 2 credit card give credit increases?

The credit line on a Petal® 2 “Cash Back, No Fees” Visa® Credit Card can be increased if a cardholder qualifies for it. Eligible cardholders have to 1) pay the greater of their minimum payment or 15% of their monthly statement balance by the payment due date, for six (6) consecutive months and 2) ensure their Vantage Score doesn’t fall below 25 points of the credit score they had when initially applying for the card.

What credit bureau does the Petal report to?

Petal reports to all three major credit bureaus: Experian, Equifax, and TransUnion.

What was the Petal 2 credit card Release Date?

Petal rebranded the Petal Cash Back Visa Card as the Petal® 2 “Cash Back, No Fees” Visa® Credit Card and debuted it on October 1, 2020. Along with the promotion of the new and improved Petal 2 credit card, the Petal® 1 “No Annual Fee” Visa® Credit Card was launched.

Apply Now for the Petal 2® “Cash Back, No Fees” Visa Credit Card

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