Petal 2 Visa Credit Card Reviews: Cash Back No Fees Visa Credit Card?
Petal 2 Visa Credit Card may choose not to use credit scores alone to decide eligibility, and the card offers a “no fees feature,” making it a perfect initial choice.
The Petal 2 credit card, which has no annual fee, is a good option for anyone with a good credit history. It's among the few no-annual-fee credit cards offered to those with not excellent credit that may earn up to 1.5 percent cash-back, making it a unique catch among unsecured credit cards designed to help people develop credit.
The Petal 2 card's reward system stirs up responsible payment behavior. You'll get 1% cash-back on eligible purchases instantly, and after 12 on-time monthly payments, you'll get up to 1.5 percent cash back on eligible purchases. Plus, at select shops, you may get 2% to 10% cash-back as well.
If your credit history isn't ruined, simply missing, you'll have to agree to let Petal connect to your primary bank account to dig up information about your payment history. That's a standard practice among issuers who give credit to people just getting started with their credit, but some cards don't demand that kind of authorization.
Overview: Petal 2 Visa Credit Card Review
What is Petal 2 Visa?
The Petal 2 “Cash Back, No Fees” Visa Credit Card is the card that has no annual charge and helps you establish credit by allowing you to use it responsibly. The Petal 2 card gives cash back incentives on transactions and requires no security deposit.
Additionally, you get 1% cash-back on eligible purchases right away, and you can get up to 1.5 percent cash-back when you make your payments (after making 12 on-time monthly payments). You may also obtain an additional cash-back of 2 to 10% at some stores. Petal 2 might be an excellent option if you want to develop credit because it's one of the best credit cards for no credit history and offers cash-back benefits.
How does Petal 2 Visa work?
The Petal 2 Visa Credit Card works in the same way that any other unsecured credit card does. Once you've been authorized, you'll be given a credit limit of $300 to $10,000 and any credit line adjustments are not taken into account afterward. You may use your credit card to make purchases, but you'll have to pay a monthly minimum payment. You will be charged a variable APR from 13.24% – 27.24% if you carry a debt month after month.
Use the Petal 2 Visa Credit Credit Card to increase your credit score and start exercising excellent credit practices if you're new to using credit. Start by charging minor items to your card that you can afford to pay off, and by paying your credit card account early or on time each month, you can ensure that only positive payments are recorded to the three major credit bureaus.
Not only will those good payments enhance your credit score, but in fact, you'll also get a bonus of 1.25 percent cash back after six timely payments, and 1.5 percent after 12 on-time payments. You may demand a statement credit get transferred to your bank account, or a physical check when you're ready to receive your cashback.
Avoid holding debt on this card since the interest rate, which ranges from 12.99 percent to 26.99 percent, can soon wipe out whatever benefits you earn.
Finally, be mindful of your credit limit when using this card. One of the most important credit-scoring criteria is your credit usage ratio, which compares the amount of credit you have available to your debt amount. This ratio should be kept below 30%, according to experts.
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What are the Features of Petal 2 Visa?
These are the broader features of Petal 2 Visa that will help you understand your options better.
Main Features
- Starter and alternate cards are the two types of cards available.
- There is no annual cost.
- No security deposit is required.
- Cash-back of up to 1.5 percent on all everyday purchases. You begin by receiving 1% cash-back on all transactions. If you make six consecutive monthly payments on time, your rewards rate will increase to 1.25 percent cash-back. And, if you make 12 consecutive monthly payments on time, the rate will increase to 1.5 percent cash-back. Plus, you may earn up to 10% cash-back on eligible purchases.
- APR: The variable APR is 13.24% – 27.24%.
- APR penalty: $0.
- Depending on creditworthiness, borrowing limits range from $300 to $10,000.
- There is no charge for international transactions.
Other Important Points
- All payments are reported to TransUnion, Equifax, and Experian, the three major credit bureaus.
- Optimized website for account administration and budgeting on both iPhone and Android mobile apps
- Benefits from the Visa agreement, such as vehicle rental collision insurance, theft coverage, and roadside assistance. Petal also accepts Visa Local Offers, a program that allows users to earn Uber credits.
What is the Credit Score Requirement of Petal 2 Visa?
Even if you have no credit, you could be eligible for the Petal 2 “Cash Back, No Fees” Visa Credit Card. WebBank, Petal's issuing bank, looks at more than just FICO ratings to evaluate creditworthiness. The bank uses Petal's algorithm, which considers income, savings, and consumption. You may qualify if you have a good cash flow that can be proved with account credentials.
Credit History
However, if you have a past credit history, the recommended credit score for Petal 2 Visa cash card is average to excellent, which is 630 to 850 FICO score. This card is not for the ones with poor credit history.
How much does Petal 2 Visa Cost?
Fees
There are no annual fees, foreign transaction fee, late fees, or returned payment costs with the Petal 2 credit card. In return, you won't be able to make any balance transfers or cash advances right now (which technically means no fees for either of these functions either).
APR Range
The variable purchase APR ranges from 13.24% – 27.24% and can be significantly lower than the current average interest rate.
Foreign Transaction Fees
There are no foreign transaction fees levied on Petal 2 Visa credit card. So if you frequently travel abroad and make purchases there, this credit card is apt for you.
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Who is Petal 2 Visa Best For?
The Petal 2 Visa card is an excellent first credit card for recent college graduates, young people, and anybody who hasn't fully built a positive credit history but doesn't have a bad credit history that may prevent acceptance.
For Better Credit Limit
It's also a good choice for individuals who desire a credit limit that's a little greater than the average for this type of card. Unlike a secured card, which restricts you to the money you can deposit (at least in the beginning), Petal 2 will give you a limit of a minimum of $500 without a deposit, which is more than the minimum limits on many secured cards as well as some rival beginning credit cards.
For Building Credit-History
The Petal Visa credit card's possible greater credit limit might make it more beneficial in building a favorable credit history than most starting credit cards. It allows you to spend more without depleting your credit utilization—the proportion of your credit limit that you're utilizing. Credit bureaus reward lesser utilization with higher credit ratings when all other conditions are equal.
Petal 2 Visa Pros and Cons
If you want to establish credit without having one, the Petal 2 card might be a viable alternative to the typical student credit card as you don't require a past credit history to apply. When choosing a credit-building card, keep these advantages in mind.
Petal 2 Visa Compare to other Cards
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Petal 2 Visa vs. Citi Premier Credit Card
Citi Premier Credit Card: The Citi Premier card is Citi's most premium rewards program, delivering 3x points on air travel, gas stations, hotels, restaurants, and supermarkets combined purchases and 1x points on everything else. This card is realistic and appealing for all people, especially frequent travelers because it includes no foreign transaction fee, protection advantages, and a substantial signing bonus.
It also has a greetings offer.If you make eligible purchases of $4000 within the first three months of account opening, you earn 80,000 bonus ThankYou Points. Moreover, this card has no expiration and no limit to the number of points you can earn with this card. However, there is an annual fee of $95, and you need an excellent credit score to apply for a Citi premier credit card.
Petal 2 Visa Credit Card: Petal 2 Visa “Cash Back, No Fees” is an enticing card for the next generation consumers who wish to manage their money wisely. It is for people who don't have much credit, moreover, it can help them build their credit score. It comes with up to 1.5 percent cash back that can be redeemed at any time and has no expiration date.
The Petal 2 card is a terrific choice to secured credit cards for new users since there are no upfront annual fees or security deposits, and so you can start earning cash back immediately. Moreover, there is nolate payment penalty as well as no return payment fees. It is also a good choice for people who travel often as there is no foreign purchase transaction Fees.
Petal 2 Visa vs. Chase Sapphire Preferred
Chase Sapphire Preferred: When you talk about travel cards, the Chase Sapphire Preferred is a great option. This is because it could be a suitable fit for both newcomers for points and miles as well as for seasoned reward maximizes. However, there is a $95 annual charge on this card and the initial bracket of regular APR is slightly higher than Petal 2 Visa credit card at 13.24% – 27.24% Variable.
But, there is a big welcome package available on this card, as after spending $4,000 on purchases in the first three months after opening your account, you'll get 60,000 bonus rewards. Chase Ultimate Rewards cardholders get 5 points per dollar spent on travel, 3 points per dollar spent on dining, 2 points per dollar spent on all other travel purchases, and one point per dollar spent on all other eligible purchases.
Petal 2 Visa Credit Card: The Petal 2 credit card, which has no annual fee, is a good option for anyone with a good credit score. It's one of the only no-annual-fee credit cards offered to those with not excellent credit score that may earn up to 1.5 percent cashback, making it a unique find among unsecured credit cards designed to help people develop credit. Also, the APR range starts from 13.24% – 27.24%.
The Petal 2 card's reward system starts the responsible payment behavior. You'll get 1% cashback on select items right immediately, and after 12 timely monthly payments, you'll get up to 1.5 percent cash back on eligible purchases. Plus, at select shops, you may get 2% to 10% cashback.
>> Related Topic: Best Chase Credit Cards • Compare Top Chase Credit Card of 2024
Petal 2 Visa vs. Capital One Venture Rewards
Capital One Venture Rewards: The Venture card would be one of the best choices for travellers. Its 2 miles per dollar spent rate is excellent, but its redemption restrictions are not. Although the travel advantages are excellent, the lack of a low introductory APR makes it unsuitable for balance transfers.
A $95 annual charge, is a significant disadvantage when compared to any of the other no-annual-fee 2% cash-back cards available, which allow you to spend your rewards anyway you like.
This card is designed for customers who use their cards mostly for travel redemptions. We'd also recommend combining it with another card like Petal 2 Visa, for those consumers who want extra spending power. There are lot many other cards that are equally as beneficial as the Venture without the annual fee for people who want more freedom from their all-around rewards card.
Petal 2 Visa: The Petal 2 “Cash Back, No Fees” Visa Credit Card is worth considering if your credit history is just getting started. When it comes to cards for those with fair credit, the card, which works on the Visa network, is one of the finest of the lot.
You won't have to pay an annual fee or give a security deposit with the Petal 2 card, and qualified transactions will earn you 1% cashback rewards. That amount will grow to a respectable 1.5 percent cashback with persistent on-time payment habits.
Conclusion: Is Petal 2 Visa Worth it?
The Petal 2 Visa card is an excellent beginner's credit card if you have a minimal credit history or none at all. It doesn't need a security deposit, has no fees, and offers up to 1.5 percent cash back on purchases. Because there are no costs connected with using the card, the points you receive on purchases are not negated by anything other than the interest rates if you choose to carry a debt.
In addition, the card comes with certain handy features, such as supplementary auto rental insurance. Hence, with this card, You'll receive simplicity and transparency: no minimum deposit, no fees, a good travel companion, and maybe a bigger credit limit than you'll find elsewhere in its category. You'll also get rewarded for paying your debt on time, which might help you create responsible habits in the future.
However, you can't guarantee that you'll be eligible for the Petal Visa, particularly if you have a bad credit history.
>> Related Topic: Best American Express Card • Compare Top AmEx Credit Cards of 2024
Petal 2 Visa FAQs
Are Petal cards good?
Petals are definitely good choices. There aren't many credit-building cards with a rewards programme. The Petal 2, on the contrary, allows you to earn cash back and encourages you for making on-time payments with a greater cash back rate (which may be a great push to building credit).
With a student credit-building card, students may have other options. You may want to check at other cash back rewards cards as well, depending on the cash back rewards structure that works best for you. However,when we compare the Petal 2 card to similar choices for those with fair credit, everything seems good.
The Petal 2 card can be a smart option because of its absence of annual and other account fees, the possibility for a robust rewards system, and the chance to qualify for a lower APR than other cards geared at individuals working on establishing credit.
Does Petal card give credit increases?
Yes, Petal rewards customers who use their cards properly over time with credit increases. Cardholders who pay their bills on time for six months in a row and maintain their credit score may be eligible for an automatic credit increase through the Petal “Leap” programme. Petal does not presently enable consumers to request a greater credit limit on demand, thus all credit limit changes are automatic.
Petal 1 cardholders must pay the minimum due or 15% of their amount (whichever is greater) for six months in a row to be eligible for an automated credit limit increase, as well as prevent their VantageScore credit score from decreasing 50 points or more since they applied.
Whereas, Petal 2 cardholders should also make at least payments due or 15% of their debt (whichever is greater) for six months in a row, and maintain their VantageScore credit score from decreasing by more than 25 points since they applied.
Is Petal 1 or 2 better?
The choice between Petal 1 and Petal 2 depends completely on your credit score, but Petal 2 definitely has an edge. If you suspect you might not be eligible for the Petal 2 Card, the Petal 1 Card, issued by WebBank, Member FDIC, is a better option. It, too, has no annual charge, but it's geared at people with bad to fair credit.
You will be charged late payment fees or return payment fees, unlike the Petal 2, but it is one of the few unsecured cards accessible to persons with weak to good credit that does not charge an annual fee. The Petal 1 Card does not offer continuing rewards, also it can not be used at any foreign location. However, you may take advantage of Petal Offers, which vary from 2% to 10% cashback at certain stores.
