Petal 1 Credit Card Review – A Beginner Card with Perks
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This is a great card for beginner borrowers looking to take advantage of the benefits of a rewards credit card while building their score.
9/10
Fees
9/10
Cash Back
5/10
Bonuses
3/10
Credit Building
9/10
The Petal 1 credit card is designed for borrowers with imperfect credit. Rather than basing their approval on credit score alone, they also consider factors like your banking history. With no annual fee and the opportunity to earn cash back at select merchants, this is a great card for beginner borrowers looking to take advantage of the benefits of a rewards credit card while building their score.
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What is the Petal® 1 "No Annual Fee" Visa® Credit Card?
The Petal® 1 "No Annual Fee" Visa® Credit Card is a Visa credit card from Petal. It’s a sister card to the Petal® 2 "Cash Back, No Fees" Visa® Credit Card, which comes with many similar features but is typically reserved for borrowers with average to good credit. Petal 1 comes with features like cash back, no annual fee and the potential for credit ll increases, along with various financial tools to help borrowers manage their finances and stay on track. WebBank, Member FDIC, issues petal credit cards.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
How does the Petal® 1 "No Annual Fee" Visa® Credit Card work?
Applicants can apply for the Petal 1 card through Petal’s website.
To apply, you’ll need to provide basic details about yourself and your finances, including your email, name, birthday, and social security number. You’ll also need to give information about your employment status, income, and housing costs. If you have already received an offer for this card by mail, you may be able to skip some of these steps.
Once you complete your application, you can see whether you qualify for Petal 1 and Petal 2 cards without affecting your credit score. Sometimes, you may also need to link your bank account to provide Petal with additional information about your finances before they can decide.
How much does the Petal® 1 "No Annual Fee" Visa® Credit Card cost?
The Petal 1 card has no annual fee. However, it does charge late payment fees. The first time you miss a payment, there is a late payment fee of $29. If you miss another payment within six months, there is a late fee of $40. There’s no intro APR, so balances begin accruing interest right away.
Petal® 1 "No Annual Fee" Visa® Credit Card features
The Petal 1 card has great features like cashback, no annual fee, and the potential for a credit line increase.
No annual fee
One of the most attractive Petal 1 card features is that there’s no annual fee, unlike many cards aimed at borrowers with bad credit.
Unsecured card
Cards for borrowers with poor credit often tend to be secured credit cards. While these cards help borrowers build up a good credit history, they also require a security deposit upfront, which can be out of reach for many borrowers. Unsecured credit cards like Petal 1 require no deposit to open an account.
Cashback at select merchants
The Petal 1 card offers cash back at select merchants. While this card won’t earn you as many rewards as a card that earns points or cashback on all purchases, it’s still a nice extra perk.
Accepts borrowers with less-than-perfect credit
Another benefit of this card is that you don’t need good or excellent credit to apply. Petal looks at your credit score and other indicators of financial health. They formulate a Cash Score based on factors like your banking history to determine your creditworthiness and application. That means that even borrowers with lower credit scores have a better chance of acceptance.
Potential credit line increase
The Petal 1 card also comes with the potential for a higher credit limit in the future. While the card starts with a limit of $300 to $5,000, you can earn a credit line increase in 6 months by making qualifying on-time payments and keeping your credit score within a personalized range.
No international fees
If you travel internationally often, you may know first-hand how much foreign transaction fees can affect your budget. Petal doesn’t have international fees, so you won’t incur an additional charge when using this card abroad.
Online tools
The card comes with various helpful tools for budgeting and saving, including Petal’s mobile app, which lets you calculate payments and plan your budget for the month.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
Who is the Petal® 1 "No Annual Fee" Visa® Credit Card best for?
Borrowers with imperfect credit. If your credit isn’t perfect, but you want to build your score, the Petal 1 card is a great option. Because it takes a holistic view of your financial health, you’re more likely to be approved rather than focusing just on your credit history. You could still be approved even with a spotty or limited credit history.
Borrowers who don’t want a secured card. Many borrowers with poor credit may only qualify for a secured credit card, which requires an up-front deposit. But while Petal caters to borrowers without perfect scores, it’s an unsecured card, so you won’t have to pay any money upfront.
Borrowers who want a low-fee card. Another benefit of this card is that it charges very few fees. Aside from the $0 annual fee, the card doesn’t charge international fees. The only fee it does charge is a late fee of $29 to $40.
Who shouldn’t use the Petal® 1 "No Annual Fee" Visa® Credit Card?
Borrowers who can qualify for a better card. Borrowers with good credit scores may be able to qualify for cards with even better rates and perks. This card is designed primarily for those looking to rebuild their score.
Borrowers looking for robust rewards. While the Petal 1 card does earn cashback rewards for eligible purchases at select merchants, it doesn’t earn rewards on all purchases. Borrowers looking for more robust rewards should look for a card that earns rewards on all purchases and offers bonus categories for specific spending categories. Many cards also offer attractive sign-up bonuses.
Borrowers looking for high credit limits. The Petal 1 card has an initial upper limit of $5,000. Although they offer a potential credit limit increase after six months, this is still a relatively low limit for many cardholders.
Pros & cons
Petal vs. competitors
Card | Annual fee | APR | Rewards |
Petal 1 | $0 | 24.74% - 34.24%(variable) | 2% - 10% cash back at select merchants |
Capital One Platinum Credit Card | $0 | 29.99% | N/A |
Discover it Secured Credit Card | $0 | 27.74% variable | 2% cash back at gas stations and restaurants, 1% cash back on all other purchases ($1,000 spend limit) |
Citi® Secured Mastercard® | $0 | 26.74% | N/A |
Capital One Platinum Credit Card
Capital One Platinum Credit Card
Card Name
Capital One Platinum Credit Card
APR
29.99%
Recommended Credit Score
Average, Fair, Limited
Annual Fee
$0
Special Offer
No annual or hidden fees.
Special Offer Terms
See if you're approved in seconds
Rewards Rate
N/A
Terms
Why We Like It
- No annual or hidden fees.
- You are automatically considered for a higher credit line in as little as six months.
- You can monitor your credit score for free with CreditWise from Capital One.
Discover it® Secured Credit Card
Discover It® Secured Credit Card
Card Name
Discover It® Secured Credit Card
APR
28.24%
Recommended Credit Score
N/A
Annual Fee
$0
Rewards Rate
Earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, automatically. Earn unlimited 1% cash back on all your other purchases automatically. 2x cash back with Cashback Match, get an unlimited dollar-for-dollar match of all the cash back you've earned at the end of your first year, automatically.
Why We Like It
- Credit-building credit card with limit you set with your deposit.
- Automatic review in 7 months to see if you can transition into an unsecured line of credit and return your deposit.
Citi® Secured Mastercard®
Citi® Secured Mastercard®
Card Name
Citi® Secured Mastercard®
APR
26.74%
Recommended Credit Score
Limited History, No Credit, New-to-Credit
Annual Fee
$0
Special Offer
N/A
Special Offer Terms
Rewards Rate
Why We Like It
- No annual fee.
Credit Saint takes action to fix unfair or inaccurate negative items harming your credit.
- 90-day money-back guarantee
- Free consultation
- 200k happy customers
- 19 years experience
- 11,000+ five-star reviews
FAQs
What’s the difference between Petal 1 and Petal 2?
There are a few key differences between the two cards. Petal 1 earns 2% to 10% cashback at select merchants, while Petal 2 earns 1% to 1.5% cashback on all purchases. Petal 1 has an initial credit limit of $300 to $5,000, while Petal 2 has a credit limit of $300 to $10,000. Petal 1 has a regular APR of 22.24% to 31.74%, while Petal 2 has 15.24% to 29.24%. Both cards have no annual fee and no foreign transaction fees, but Petal 1 charges late fees and returned payment fees.
Does applying for a Petal 1 card affect your credit score?
Borrowers can see if they prequalify for the Petal 1 card without affecting their score. Once you officially submit your application for the card after prequalifying, the hard inquiry will show up on your credit report and may temporarily lower your score by a couple of points.
What does Petal look at when reviewing your application?
Unlike most credit card companies, Petal only looks at your credit score when reviewing your application. They also look at other potential indicators of financial health, like your income, savings, and spending history. This means that even if your credit score isn’t where you want it to be yet, you may still qualify for a Petal card.
The bottom line
The Petal 1 credit card is excellent for new borrowers and those trying to build credit. With no annual fee, cashback at select merchants, and plenty of helpful in-app saving and budgeting tools, this card is a good starter card.
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Writer
Margaret Wack covers personal finance and small business and has appeared on MoneyUnder30, The Simple Dollar and Interest.com.
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