Petal 2 Visa Credit Card Review

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Petal 2
Good for No Credit History

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

Editor’s Score: (4.0/5)
Learn more externa link icon at our partner’s secure site.
Rewards rate:

Up to 1.5% cash back after making 12 on-time monthly payments. 1% cash back on eligible purchases right away.

  • Intro bonus: No current offer
  • Annual fee: $0
  • Regular APR: 12.99% – 26.99% (Variable)
  • Recommended credit score: (No Credit History)

The Petal 2 Visa Credit Card*, issued by WebBank, is designed to help credit newcomers establish credit and build a good credit score with no annual fee. You’ll earn cash back rewards on your spending, and the card uses an alternative approval process which can help you qualify even with no credit history. 

At a Glance

  • Earn a baseline 1% cash back on all eligible purchases, and up to 1.5% back after 12 on-time payments
  • Reports payment history to all three credit bureaus
  • Credit limit between $500-$10,000
  • No annual fee
  • 12.99%-26.99% variable APR

Pros

  • Cash back rewards increase with responsible credit use

  • No annual fee or security deposit

  • Prequalify online without a hard inquiry on your credit report

Cons

  • No welcome bonus or introductory APR

  • High variable APR

Additional Card Details

Since the Petal 2 Visa Credit Card is geared toward people who need to begin building credit, there aren’t many cardholder benefits beyond cash back rewards and no fees (this includes no foreign transaction fees and no late or returned payment fees). 

As you pay your credit card bills on time, you can boost your cash back earnings. After six timely payments, you’ll earn 1.25% cash back on eligible purchases; after 12 on-time payments, you’ll earn 1.5% cash back. Separately, you also get the chance to earn 2% to 10% back on purchases made with your card at select stores through Petal Offers.

The Petal Card also has a robust mobile app which you can use to check your purchase activity, monitor your credit score, calculate payments, work out a budget, and find out which merchants near you offer additional Petal cash back offers.

Should You Get this Card?

This card is a great option for people looking to build credit with no credit history.

It’s even on our list of best credit cards for no credit history, primarily because of the unique approval process available for credit novices. When you apply, your creditworthiness isn’t only determined by your credit score. Instead, Petal creates a “Cash Score” based on income, savings, and spending history using your bank account information.

We also like Petal 2 Visa for its lack of fees and potential rewards, combined with ongoing incentive for cardholders to practice good credit habits. Often, people with little credit history have few credit-building options outside of secured credit cards. However, the Petal 2 Visa Credit Card is an unsecured card, which means you can start building credit without putting down a deposit as collateral. 

There’s no annual fee and no late or returned payment fees, and the minimum credit limit is $500 — which is higher than many other starter cards. Plus, you get the chance to earn rewards on your spending. After 12 on-time payments, you can earn as much as 1.5% cash back on each purchase, which is not bad compared to other cash back credit cards on the market, and especially good for a starter credit card. 

How to Use the Petal 2 Visa Credit Card

If you’re a beginner to using credit, use the Petal 2 Visa Credit Credit Card as a tool to build your credit score and begin practicing good credit habits. Start by charging small purchases you can afford to pay off to your card, and make sure only positive payments are reported to the credit bureaus by paying your credit card bill early or on time each month. 

Not only will those positive payments have a big effect on your credit score, but you’ll also earn a boosted 1.25% on your spending after six on-time credit card payments, then 1.5% back after 12 on-time payments. When you’re ready to redeem your cash back, you can request a statement credit, transfer to your bank account, or paper check.

You should avoid carrying a balance on this card — accruing interest at a rate between 12.99% and 26.99% will quickly wipe out any rewards you earn on your spending.

Finally, keep your credit limit in mind while you spend with this card. Credit utilization ratio, or the amount of credit you have available (your credit limit) versus the amount you owe (your balance), is one of the most influential credit scoring factors. Experts recommend keeping this ratio below 30%. If you’re assigned the minimum credit limit of $500, for example, you should aim to keep your statement balance below $150.

Petal 2 Visa Credit Card Compared to Other Cards

Petal 2

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

Editor’s Score: (4.0/5)
  • Intro bonus:
    No current offer
  • Annual fee:
    $0
  • Regular APR:
    12.99% – 26.99% (Variable)
  • Recommended credit:
    (No Credit History)
  • Learn more externa link icon at our partner’s secure site.
Capital One Platinum Credit Card

Capital One Platinum Credit Card

Editor’s Score: (3.6/5)
  • Intro bonus:
    No current offer
  • Annual fee:
    $0
  • Regular APR:
    26.99% (Variable)
  • Recommended credit:
    (No Credit History)
  • Learn more externa link icon at our partner’s secure site.
Bank of America® Customized Cash Rewards credit card

Bank of America® Customized Cash Rewards credit card

Editor’s Score: (4.3/5)
  • Intro bonus:
    $200
  • Annual fee:
    $0
  • Regular APR:
    13.99% – 23.99% Variable APR on purchases and balance transfers
  • Recommended credit:
    670-850 (Good to Excellent)
  • Learn more externa link icon at our partner’s secure site.

Bottom Line

EDITORIAL INDEPENDENCE

As with all of our credit card reviews, our analysis is not influenced by any partnerships or advertising relationships.

The Petal 2 Visa Credit Card is an excellent choice for anyone with little to no credit history. You can increase your credit score through regular reporting to the credit bureaus while earning rewards on your spending. Plus, there’s no annual fee and you can manage your card use and budget through the Petal mobile app.

But before you apply, consider all the options available for consumers building credit for the first time. Compare Petal 2 Visa to our picks for the best credit cards for bad credit, best secured cards, and best cards for no credit to make sure you choose the right card for your goals. 

Frequently Asked Questions

Which bank issues the Petal 2 Visa Credit Card?

The Petal 2 Visa Credit Card is issued by WebBank, member FDIC.

How does the Petal 2 Visa Credit Card work?

The Petal 2 Visa Credit Card works like any other unsecured credit card. Once you’re approved, you will be assigned a credit limit between $500 and $10,000. You can charge purchases to your credit card and you’ll be required to pay a minimum payment each month. If you carry a balance from one month to the next, you’ll be charged a variable rate between 12.99% and 26.99%.

What is the minimum credit score for the Petal 2 Visa Credit Card?

The Petal 2 Visa Credit Card doesn’t provide a recommended credit score. If you have no credit history, you can allow access to your banking information to prove your creditworthiness based on details like income, savings, and spending history. You can also see if you prequalify for the card online before you undergo a hard inquiry on your credit report.

*All information about the Petal 2 Visa Credit Card, Bank of America Customized Cash Rewards credit card, and Capital One Platinum Credit Card has been collected independently by NextAdvisor and has not been reviewed by the issuer.