Petal® 2 “Cash Back, No Fees” Visa® Credit Card Review: A Smart Choice for Credit Builders
The Petal® 2 Visa® Credit Card, issued by WebBank, is designed for those with limited or no credit history, offering a straightforward way to build credit while earning cash back on purchases. With no annual fees, no foreign transaction fees, and an easy-to-understand rewards system, it stands out as a top contender for credit newbies.
Current Offer Details
Annual Fee: $0
Regular APR: 18.24% – 32.24% (Variable)
Petal 2’s Pros and Cons
Pros
- No Fees: No annual fees, foreign transaction fees, late payment fees, or returned payment fees.
- Rewards for All Purchases: Earn 1% – 1.5% cash back on eligible purchases and 2% – 10% at select merchants.
- Credit Building: Reports to all three major credit bureaus and offers tools to track your credit score and spending.
Cons
- No Balance Transfers: Not ideal for those looking to manage existing debt through balance transfers.
- Complex Rewards Structure: The tiered rewards system based on on-time payments may be confusing for some users.
How the Petal 2 Card Works
Rewards Structure
- 1% Cash Back: Earn this rate on all eligible purchases from day one.
- Increased Cash Back: Increase to 1.25% after six on-time payments and 1.5% after 12 on-time payments.
- Bonus Offers: Earn 2% to 10% cash back at select merchants through the Petal Offers program.
Redeeming Rewards
- Cash Back Wallet: Accumulate rewards in your Cash Back Wallet each billing cycle.
- Redemption Options: Redeem as a statement credit or transfer to a bank account if you have more than $20 available.
Leap Program
- Credit Line Increase: Eligible for an increase if you make timely payments for six months, helping reduce your credit utilization and potentially boosting your credit score.
Reasons to Get the Petal 2 Card
Flexible Approval Process
Petal 2’s unique Cash Score system evaluates your financial behavior, including income and expenses, making it accessible even if you have no credit history.
No Security Deposit
Unlike many credit-building cards, Petal 2 does not require a security deposit, making it more accessible for those starting their credit journey.
High Potential Credit Limit
Credit limits range from $300 to $10,000, providing ample room to keep your credit utilization low, which is beneficial for your credit score.
Useful Perks
Enjoy travel benefits such as auto rental collision insurance and roadside dispatch without any additional fees.
Reasons to Skip the Petal 2 Card
No Balance Transfers
If you need to consolidate debt, look for cards that offer balance transfer options.
Confusing Rewards Structure
The tiered rewards system may be challenging for beginners to navigate, potentially reducing the card’s attractiveness.
Petal 2 vs. Other Cash Back Credit-Building Cards
Comparison Table
| Card | Annual Fee | Rewards Rate | Intro Offer | Recommended Credit Score |
|---|---|---|---|---|
| Petal® 2 Visa® | $0 | 1% – 1.5% | N/A | No Credit History |
| Discover it® Secured | $0 | 1% – 2% | Cashback Match™ | No Credit History |
| Capital One QuicksilverOne | $39 | 1.5% – 5% | N/A | Fair to Good (580-740) |
Detailed Comparison
Petal 2 Visa vs. Discover it® Secured
- Rewards: Discover it® Secured offers a higher potential rewards rate but requires a security deposit.
- Fees: Both have no annual fees, but Discover’s rewards match can be more lucrative in the first year.
Petal 2 Visa vs. Capital One QuicksilverOne
- Annual Fee: Petal 2 has no annual fee, while QuicksilverOne charges $39.
- Rewards Rate: QuicksilverOne offers a flat 1.5% cash back but comes with an annual fee.
Is the Petal 2 Card Worth Getting?
The Petal 2 Visa is an excellent choice for individuals with limited or no credit history who want to build credit without paying fees. Its straightforward rewards system and potential for a high credit limit make it a strong contender in the credit-building category.
Who Should Consider This Card?
- Credit Newbies: Ideal for those starting their credit journey or lacking a credit history.
- Reward Seekers: Offers a flexible cash back program for everyday purchases.
- Frequent Travelers: No foreign transaction fees make it a great option for international use.
Who Should Look Elsewhere?
- Debt Managers: Those needing balance transfer options should consider other cards.
- Advanced Credit Users: Individuals with good credit may find more lucrative rewards cards.
Frequently Asked Questions
Q: Is the Petal 2 good for people with bad credit?
A: The Petal 2 is best for those with limited or no credit history rather than damaged credit. Those with bad credit may benefit more from secured credit cards.
Q: What’s the difference between the Petal 1 and the Petal 2?
A: Petal 2 offers more substantial rewards and no fees compared to Petal 1, which charges late and returned payment fees.
Q: What’s the credit limit for the Petal 2?
A: Credit limits range from $300 to $10,000, depending on your creditworthiness.
Q: Can you increase your Petal 2 card’s credit limit?
A: Yes, through the Leap program, you can qualify for a credit limit increase after six months of on-time payments.
Q: Do you need to complete a credit check for a Petal 2 credit card application?
A: Yes, a hard credit check is required for the Petal 2 credit card application.
The Bottom Line
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card stands out as a top choice for credit builders, offering no fees, a straightforward rewards system, and opportunities to increase your credit limit. Whether you’re just starting your credit journey or looking for a reliable card with minimal fees, the Petal 2 is worth considering.
Quick Tips
- Use the Petal App: Track your spending, manage your finances, and find local merchants offering higher cash back rates.
- Pay on Time: Earn higher cash back rates by making consistent on-time payments.
- Monitor Credit Utilization: Keep your credit utilization low to help boost your credit score.
Explore the Petal 2 Visa today and take the first step towards building a solid credit foundation while earning rewards on your everyday purchases.
