For cardholders looking to build credit, both the Petal 1 “No Annual Fee” Visa Credit Card and Petal 2 “Cash Back, No Fees” Visa Credit Card can make great tools. These cards are geared toward users who want to improve their credit, since they have a built-in path to higher credit limits and use your banking information to assess your creditworthiness beyond just your credit score.
But depending on your goals and your personal financial situation, one Petal card may be a better fit for you than the other. If you’re considering a Petal credit card, here’s what you need to know about the different benefits of each, and how to pick the right one for you.
Side-by-Side Comparison
| Petal 1 Visa Card | Petal 2 Visa Card | |
|---|---|---|
| Fees | • No annual fee • No foreign transaction fees | • No annual fee • No foreign transaction fees • No late fees • No returned payment fees |
| Cash Back Rewards | • Earn rewards on purchases with eligible merchants | • Earn 1% cash back on every purchase • Graduate to 1.5% back after you make 12 monthly, on-time payments • Earn rewards on purchases with eligible merchants |
| Other Features | • Credit limit of $300 to $5,000 • 19.99% to 29.49% variable APR • Path to a credit limit increase | • Credit limit of $300 to $10,000 • 12.99% to 26.99% variable APR • Path to a credit limit increase |
Rewards and Benefits Comparison
Both Petal credit cards earn anywhere from 2% to 10% on purchases made with select merchants using Petal Offers. These offers are automatically added to your account, and the merchants can vary. Neither card offers a cash welcome bonus.
With the Petal 1 Card, Petal Offers are the only rewards you’ll be eligible to earn.
The Petal 2 Visa Credit Card offers more rewards on every purchase. You’ll automatically earn 1% back on everything you buy, and as you use your card responsibly, you can increase your rewards rate. After six months of on-time payments, you’ll earn 1.25% cash back. And after 12 months of on-time payments, you can get 1.5% back on every purchase. There’s no limit to the amount of rewards you can earn.
You can redeem cash back earned on either Petal card for a statement credit, check, or transfer into your bank account.
There are some other credit-building benefits between these two cards. The Petal 2 Visa Credit Card has a maximum credit limit of $10,000, whereas the Petal 1 Visa Credit Card caps its credit limit at $5,000, though your starting limit on both cards may be as low as $300. After approval, you can also work toward a higher credit limit by making six months of on-time payments.
Pro Tip
You can check which Petal card you’re eligible for by submitting an application for pre-approval through Petal’s website online, with no impact to your credit score.
This can be especially useful if you start out with one of the lower credit limits on either card. Even if you don’t spend up to the limit, a higher credit line can help you improve your credit score by keeping your credit utilization ratio — the amount of credit available to you compared to the amount you use — within a healthy range below 30%.
One of the most valuable perks of a Petal card for anyone looking to build credit is Petal’s alternative approval process. When you apply for a Petal Card, the issuer may use bank account information you provide to give you a Cash Score. Rather than using your credit score alone, this score helps determine your creditworthiness based on factors like your income, savings, and spending history.
And while the Petal 2 Card may offer more opportunity for rewards, the biggest benefit of the Petal 1 Visa Credit Card is its accessibility to people with low credit scores and individuals who have made credit mistakes in the past. Even if you don’t qualify for Petal 2 based on your Cash Score, you may still be eligible to open a Petal 1 Card.
APRs
Neither Petal 1 nor Petal 2 comes with an introductory APR for purchases or balance transfers, and they both charge relatively high APRs. However, the Petal 2 Visa Credit Card has a slightly lower variable interest rate range of 12.99% to 26.99%. Meanwhile, the Petal 1 Visa Credit Card charges a variable APR of 19.99% to 29.49%.
Carrying a revolving balance on your account with an APR within either range could become costly in a hurry. To avoid high interest debt and begin improving your credit, charge only what you can afford to pay off in full and on time each month.
Fees
Both the Petal 1 Visa Credit Card and the Petal 2 Visa Credit Card charge no annual fees or foreign transaction fees.
If you’re approved for Petal 2, you also won’t pay late payment fees and returned payment fees. However, these fees do apply for Petal 1 cardholders. With Petal 1, you’ll pay up to $40 for late payments and $29 for returned payments.
Petal® 1 “No Annual Fee” Visa® Credit Card
- Intro bonus:N/A
- Annual fee:$0
- Regular APR:19.99% – 29.49% (Variable)
- Recommended credit:(No Credit History)
- Apply Now At WebBank’s secure site
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
- Intro bonus:N/A
- Annual fee:$0
- Regular APR:12.99% – 26.99% (Variable)
- Recommended credit:(No Credit History)
- Apply Now At WebBank’s secure site
Capital One QuicksilverOne Cash Rewards Credit Card
- Intro bonus:N/A
- Annual fee:$39
- Regular APR:26.99% (Variable)
- Recommended credit:(No Credit History)
- Learn more At our partner’s secure site
Deciding Between Petal 1 Visa Card vs Petal 2 Visa Card
Editorial Independence
As with all of our credit card reviews, our analysis is not influenced by any partnerships or advertising relationships.
If you can qualify, the Petal 2 Visa Credit Card is easily the better option from Petal. You’ll get to earn rewards on all your spending and bills while building your credit score. You may also be eligible for a higher credit limit and lower variable APR than you would get with Petal 1, depending on your creditworthiness.
With that being said, the Petal 1 Visa Credit Card could be the only Petal card you’re eligible for if your credit score or cash flow is low. Before you submit your application, you can see if you pre-qualify for either card online and without a hard inquiry on your credit report. Even if you don’t qualify for Petal 2, you may be eligible for Petal 1, which is still a solid option for credit-building.
