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.
Table of Contents
- Overview: Petal 2 Visa Credit Card Review
- What is Petal 2 Visa?
- How does Petal 2 Visa work?
- What are the Features of Petal 2 Visa?
- What is the Credit Score Requirement of Petal 2 Visa?
- How much does Petal 2 Visa Cost?
- Who is Petal 2 Visa Best For?
- Petal 2 Visa Pros and Cons
- Petal 2 Visa Compare to other Cards
- Conclusion: Is Petal 2 Visa Worth it?
- Petal 2 Visa FAQs
Overview: Petal 2 Visa Credit Card Review
|Card||Best For||Fee & Credit||More Details|
Best For Cash Back and No Fees
|Annual Fee: $0 • APR: 12.99% - 26.99% • Cashback: 1% - 1.5% and more offers|
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.
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.
- 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.
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?
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).
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.
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.
► Cash-back Benefits
Examine chosen merchant deals that give 2 to 10% cash-back returns to maximize the amount of cash-back you get.
► Benefits While Traveling
When using the Petal 2 credit card, you don't have to think about foreign transaction fees. If you're stuck on the road, Visa advantages like theft coverage, vehicle rental collision insurance, and roadside assistance are available.
► Credit-Building Advantages
All three main credit bureaus receive information on Petal 2 card usage. You may build credit and expand your cash-back rewards accumulation by paying back what you owe on time. You may also manage your money with Petal's smartphone app and get a free credit score to measure your progress.
► Approval Is More Difficult
Unlike cards that need a cash deposit and are designed for those with limited credit history due to missed payments, the Petal 2 Visa credit card may be difficult to obtain for those who have filed bankruptcy or have a history of missing payments.
Furthermore, even good credit does not guarantee that you will acquire the card. That's because Petal claims to make approval decisions based on algorithms that employ a variety of personal data points.
► Not Good for Damaged Credit
The card isn't designed to help you rebuild your credit, but it may help you develop it.
► No Special Financing Offers
There is no welcome bonus available or no introductory APR deal. Regular APR is also high, with a variable between 12.99 and 26.99%. You also don't get any cash advances, or no balance transfers are allowed.