Petal launched its first credit card, issued by WebBank, with an interesting proposal. You securely link your bank account to give Petal read-only access and can approve you for a new credit card based on your banking history. Petal’s card issuer, WebBank, can review your credit report and score when available, but does not require a credit score to qualify. Now, there’s a new credit card that can help those with more complicated credit histories—the Petal® 1 “No Annual Fee” Visa® Credit Card.
- $0 yearly fee
- Variable APR range from 24.74% – 34.24%
- $300 – $5,000 credit limit
- Increase your credit limit in as little as 6 months. Terms and conditions apply.
- Don’t have a credit score? no problem. If eligible, we’ll create your Cash Score.
- 2% – 10% cashback at select merchants
- See if you’re pre-approved in minutes without affecting your credit score
- No annual fee or foreign transaction fee
- Build credit with thousands of Petal cardmembers
- Petal’s mobile app makes it easy to manage money, track spending and automate payments
- No deposit needed
Good choice for building and improving credit
If you have no credit, or if you’re struggling to rebuild with a low credit score, the Petal® 1 “No Annual Fee” Visa® Credit Card may be a good choice.
- There is no annual fee.
- You don’t need a credit history to qualify.
- The Petal® 1 “No Annual Fee” Visa® Credit Card is reported to all three major credit reporting agencies (Experian, Equifax, and TransUnion) and SageStream (a smaller credit reporting agency that some creditors may use).
- This is an unsecured card that does not require a security deposit.
While the type of credit card you have won’t affect your credit, the Petal® 1 “No Annual Fee” Visa® Credit Card may be a better choice than other credit cards for those with low or no credit.
If you don’t have an established credit history or have bad credit, it can be difficult to get a traditional credit card. That’s why many people turn to secured cards when building or rebuilding credit. And, to be fair, some of the best secured cards have no annual fee and offer purchase rewards. However, you still have to send a refundable security deposit to the card company. For example, if you want a card with a $300 credit limit and the card issuer allows it, you will typically need to wire $300 to protect your account.
With the Petal® 1 “No Annual Fee” Visa® Credit Card, you can get a credit line of $300 to $5,000 with no security deposit required. Even if you don’t plan on making $300 worth of purchases, having a high credit limit can help you keep your credit utilization low, which is good for your credit score.
How to Qualify for the Petal® 1 “No Annual Fee” Visa® Credit Card
Even though the Petal® 1 “No Annual Fee” Visa® Credit Card requires no credit history or scoring, you still need to meet minimum requirements and complete the application and underwriting process. If you are approved for a credit card, your credit limit and interest rate may depend on your overall creditworthiness.
At a minimum, to get the Petal® 1 “No Annual Fee” Visa® Credit Card you need:
- Be at least 18 years old (19 in Alabama and Nebraska)
- Have a US phone number and email address
- Be a lawful permanent resident of the United States with a valid Social Security Number or Individual Taxpayer Identification Number. Your address cannot be a correctional facility.
- Not yet own or have previously applied for a Petal card
You may also have to link the checking or savings account for which you are the primary or joint account holder. The account must have at least three months of banking history, be with a U.S. financial institution, and be where you keep your primary income.
During the application process, WebBank analyzes your bank information, looking at your income, savings and spending history to determine your cash score. This score is used along with your credit history and credit score (if available) to help determine your eligibility for the Petal Card and the credit limit and interest rate you will receive.
While not everyone is required to link a bank account, if you are asked to link a bank account and choose not to, or your bank is not eligible, your application may be rejected. Petal’s linking service (Plaid) works with many banks, credit unions, and financial institutions. But some large financial institutions do not support it. Certain financial institutions may also have temporary connection issues, which you can check on the Petal website.
Cashback and small fees at select merchants
You can earn cash back rewards with the Petal® 1 “No Annual Fee” Visa® Credit Card through the Petal Offers program, which automatically enrolls you when you receive the card. Petal Offers may offer anywhere from 2% to 10% cash back at select merchants, potentially high cash back rates. However, because they are merchant-specific, the program is limited compared to rewards cards, which offer cash back on all purchases or a wider range of categories.
You can use the Petal® 1 “No Annual Fee” Visa® Credit Card with no annual fee. You also won’t be charged foreign transaction fees, which means your money can go farther if you use this card when traveling abroad or shopping online in foreign currency.
Two fees you may have to pay are late fees and returned payment fees. However, you can avoid these situations by paying the minimum amount each month at least by the bill due date and not refunding any money.
Apply without compromising your credit
Another reason Petal’s credit cards may be attractive is that the application process begins with a soft credit check pre-approval, which doesn’t affect your credit score.
After you complete your application, you may be pre-approved for the Petal® 1 “No Annual Fee” Visa® Credit Card or Petal’s other credit card product, the Petal® 2 “Cash Back, No Fee” Visa® Credit Card.
If you are pre-approved and decide to proceed with the full application, you will need to agree to a hard question, which may temporarily hurt your credit score. If you are not pre-approved, you can call it a day and your credit will not be affected.
Easily track your spending with the mobile app
Once you have a Petal® 1 “No Annual Fee” Visa® Credit Card, you can start using Petal’s feature-rich app – available on iOS and Android.
For example, the application includes:
- A budgeting tool that you can use to set how much you want to spend on your card each month and track your progress.
- A payment calculator that breaks down how different payment amounts affect your total interest payment.
- An automated subscription monitoring tool that tracks (and lets you easily cancel) your card-paid subscriptions.
- You can also use the app to easily find nearby merchants offering Cash Back Petal offers.
- You can also manage your account through a browser-based online portal if you prefer.
Authorized User Policy
Petal does not allow you to add authorized users to your credit card.
Is this card right for you?
The Petal® 1 “No Annual Fee” Visa® Credit Card is perfect for anyone new to credit or trying to rebuild it. Especially compared to secured credit cards, it’s an unsecured credit card with no annual fee, a $300 minimum credit limit, and a cash-back offer that’s a big plus. However, if you qualify, the Petal 2 “Cash Back, No Fee” Visa® Credit Card may be a better choice because it offers cash back on all purchases. With luck, you’ll be considered for two cards pre-approved with Petal’s soft credit check.