Petal 2 'Cash Back, No Fees' Visa Credit Card Review
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Petal 2 is a no-fee credit card that offers a simple cashback rewards program. By no-fee, it really means no fee — there are no annual fees, late fees, returned payment fees, or international fees.
9/10
Fees
10/10
Cash Back
8.5/10
Bonuses
3/10
Credit Building
9/10
Entering the world of opening credit lines can be incredibly intimidating. There are so many questions to ask. What credit cards are good? Which ones can I qualify for? Are there hidden fees lurking behind these offers? Entry-level cards don’t come with all the bells and whistles that some higher-level cards do, but they are a great first step.
My first credit card was a basic Capital One card. I actually still have it today, 12 years later! But there are so many more cards on the market now that I wish had been available back then. The Petal® 2 "Cash Back, No Fees" Visa® Credit Card is one of them.
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What is the Petal® 2 "Cash Back, No Fees" Visa® Credit Card?
Petal 2 is a no-fee credit card that offers a simple cashback rewards program. By no-fee, it really means no fee — there are no annual fees, late fees, returned payment fees, or international fees. The cashback program is a flat 1% on purchases to start, which can increase to 1.5% if you make on-time payments over your first 12 months of having the card. Petal 2 also advertises that its cardholders can get 2%-10% cashback at select merchants.
As a fee-free credit card, it’s a good option for people looking for their first credit card. Credit limits can range from $300 to $10,000, making it suitable for various situations. As a first-time user, your credit limit would likely be on the lower end of this scale, but you can request increases over time. If you already have a credit history but are looking for a no-fee card, you might be eligible for a higher starting credit limit. The annual percentage rate (APR) is variable and ranges between 17.74% to 31.74%.
Petal cards are issued by WebBank.
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® 2 "Cash Back, No Fees" Visa® Credit Card work?
If you’re interested in the Petal 2 credit card, the first step is getting pre-approved. On the Petal website, you’ll find a couple of buttons allowing you to start this process.
Clicking on either of these buttons will bring you to the same registration page.
If you received an offer from Petal, you could click on the “Have a mail offer?” button to enter your invitation code. You can also jump back into an application you started by clicking the “Already started your application?” link.
To go through the application process, you’ll need to provide your email address, name, birthdate, phone number, and social security or individual tax identification number. This information is used to confirm your identity.
Once you’ve provided that information, you’ll move on in the application process.
The bar at the top of the screen shows you how far you are in the application process. You can log in with your identification information if you need to quit and return to it later.
The next series of questions is about your finances. You’ll need to input your employment status, primary income type, and annual income. Petal includes information about including child support or separate maintenance income, which you can see below:
Now we inch on to the next step of the process, where you’ll need to input your home address. Petal will use this to confirm your identity further, so P.O. boxes and temporary and non-U.S.-based addresses cannot be accepted.
You’ll also need to input how much you pay for your monthly housing and whether you rent or own your home. This information and your annual income will help Petal understand your monthly expenses.
The next page is easy and less invasive. You only need to let Petal know how you heard about them. If you’re coming from this article, you can tell them that Joy Wallet sent you. You can also skip this question if you prefer.
And that’s it! On the next screen, you must confirm that you’ve read and agreed to some disclosures, rules, and authorizations. Don’t be afraid to take your time reading through all of these.
You can opt-in to receive automated texts or calls at the phone number you provided, but you don’t need to, and it won’t affect the outcome of your application.
After you’ve hit continue, you watch a pretty animated graphic while Petal gets your card offers together.
Now you’ll see which Petal cards you are pre-approved for.
If you want to move forward with the Petal 2 card, you can simply click on the “Continue” button. Or you can click the link that shows you the Petal 1 offer. Here’s that offer:
It’s your choice which card you want to proceed with, but in this case, I will move forward with Petal 2.
You don’t need to input additional information to submit your application, so clicking “Continue” will bring you to the last page of the application process. Here, you can review the card's interest rates and charges information.
You’ll also need to provide authorization for the Social Security Administration to disclose your social security number verification.
Once you’ve selected that button to agree, you can submit your application.
Remember that submitting a pre-approval application does not affect your credit score, but submitting this application does. The pre-approval shows you the cards you could qualify for, but submitting this application means you’re applying to receive the Petal 2 credit card.
How much does the Petal® 2 "Cash Back, No Fees" Visa® Credit Card cost?
Some cards charge annual fees just for having a credit card account open. Most charge a fee for late payments and returned payments. Others charge foreign transaction fees. Petal 2 is unique in that it does not charge any fees.
That being said, Petal 2 isn’t just handing out a line of credit for free. Interest charges are still associated with this card, which any cardholder should know. The Petal 2 card has a variable interest rate of 24.74% - 34.24%.
Interest rates have always seemed overwhelming to me, so I’ll try to break down how it works using an example:
Let’s say your regular APR is 14.50%. Since there are 365 days a year, we’ll divide the APR by 365 to get your daily periodic rate. In this case, the daily periodic rate is 0.0397%.
Now let’s say you have a $500 balance on your credit card. If there are 30 days in your billing cycle, we’ll multiply your daily periodic rate of 0.0397% by 30, and multiply that by your balance of $500. You would have a daily interest amount of $.20, which at the end of your billing cycle of 30 days would add up to $6.00 of interest.
Now, instead of owing a $500 balance, you’ll owe $506.
Fortunately, there is a way to avoid paying interest charges, even using a credit card. You only need to pay off your statement balance before your payment due date. If you continue to do this throughout the year, you won’t accrue any interest charges.
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.
Petal® 2 "Cash Back, No Fees" Visa® Credit Card features
The Petal 2 card offers several perks, making it a great option for new credit card users.
Cash Back Rewards
Petal 2 is a rewards credit card. You’ll automatically receive a cashback rewards rate of 1% on all eligible purchases as soon as you start using your card. After making 12 consecutive on-time payments, your cashback rate will increase to 1.5% back on every purchase. Petal 2 offers 2% to 10% cash-back rewards at select merchants.
Wide range of credit limits
The Petal 2 card has a credit limit that ranges from $500 to $10,000, depending on your creditworthiness. You can request credit limit increases over time if you need more than you were initially approved for.
No Fees
One of the greatest features of this card is that there are absolutely no fees. That means no annual fee, no late fees, and no international fees.
Mobile app
You can use a mobile app to manage your iPhone and Android accounts. The mobile app also offers budgeting tools to help you understand the amount you’d have to pay in interest if you don’t pay off the balance of your card.
Who is the Petal® 2 "Cash Back, No Fees" Visa® Credit Card best for?
People who need a starter card. A card like the Petal 2 could be a great option if you have a limited credit history. It offers all the basic features of a no-fee credit card and allows you to earn cashback rewards. Petal 2 reports your payments to all three major credit bureaus — Equifax, Experian, and TransUnion.
People who travel internationally. Petal 2’s no-fee benefits can be quite useful if you travel internationally often since it doesn’t charge international fees.
Who shouldn’t use the Petal® 2 "Cash Back, No Fees" Visa® Credit Card?
Experienced credit card users. There’s nothing wrong with using the Petal 2 card, but if you already have a good credit history, you can probably get a credit card with even more benefits.
People who are rebuilding their credit. This is not a secured credit card (meaning it does not require a security deposit), so it may not be available to people with a poor credit history. There are some instances in which you automatically will not be eligible for a Petal card, including if you’ve filed for bankruptcy in the past 48 months.
Pros and cons
Pros
- There are no fees associated with the Petal 2 card.
- You can use the Petal 2 card to earn cash rewards redeemed for a statement credit.
- Petal offers this starter card as a good way to build credit.
- Credit limits start as low as $500, and you can request credit line increases over time.
Cons
- You may be required to link your primary bank account to your Petal card application.
- There is no intro APR or other bonus offers.
- Cash advances and balance transfers are not allowed. This entry-level credit card may not be suitable for those with bad credit.
Petal® 2 "Cash Back, No Fees" Visa® Credit Card vs. competitors
Cards | APR | Annual fee | Security deposit required? | Credit limits | Rewards |
Petal 2 "Cash Back, No Fees" Credit Card | 17.74% - 31.74% variable | $0 | No | $300 - $10,000 | 1%-1.5% cashback on all eligible purchases and 2%-10% cashback from select merchants |
Discover it Secured Credit Card | 27.74% variable | $0 | Yes, a minimum of $200 | $200 - $2,500 | Cashback rewards, cashback match rewards program |
Citi® Secured Mastercard® | 26.74% | $0 | Yes, a minimum of $200 | $200 - $2,500 | N/A |
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
How do I pick a credit card?
To pick a credit card, you should consider your needs as well as your current financial standing. If you’re just starting to build your credit, you’ll want to look for an entry-level card, preferably one with no fees. If you can find one that offers cashback or other benefits, that’s even better. If you have a good credit history already, you might be able to qualify for cards that offer more lucrative rewards programs. No matter where you are in life, it’s a good idea to get a free quote so you can compare credit cards from different lenders.
What’s the difference between the Petal 1 and Petal 2 cards?
The Petal 2 card is designed for people with fair-to-good credit or cash flow, whereas the Petal 1 card is designed for those with low-to-fair credit or cash flow. If you’re looking to improve your credit and you can’t qualify for a Petal 2 card at this point, a Petal 1 card may be a good option. Both cards offer 2%-10% cashback on purchases from select merchants.
Why would I need to link my bank account to my application?
If you don’t have a credit score, Petal will need other information to determine whether you qualify for a credit card. In this case, Petal will ask you to link your bank account, so it can determine your Cash Score based on factors such as your income and the number of bills that you pay.
The bottom line
The Petal 2 “Cash Back, No Fees" credit card is a good credit card for people who want a basic, no-fee credit card to help build their credit. Unlike secured credit cards, opening an account does not require a security deposit. If you don’t have a credit score, you can still qualify for the Petal 2 card based on your bank account usage.
In addition to its no-fee policy, the Petal 2 card offers perks such as cash-back rewards. Even if you’re new to using credit cards, you can earn cashback when using your credit card. You can earn extra cash back from specific merchants and increase your cashback rewards rate over time.
Signing up for a Petal 2 credit card is easy. You can start by using the online pre-approval form to input your information and see whether you might qualify. The pre-approval process does not impact your credit score nor obligate you to apply for the card. If you want to apply for the card, your credit score will be pulled, and Petal will officially approve or decline your application.
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Writer
Ashley Hart is a lead copywriter and digital marketing expert covering finance, law, real estate, music, entertainment, health and wellness.
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