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The Petal® 2 "Cash Back, No Fees" Visa® Credit Card is among the best credit-building credit cards. You don't need a credit history to be approved and there's no annual fee. It also has a unique rewards program designed to encourage responsible credit habits.
CNBC Select breaks down the rewards, benefits and fees associated with the Petal 2 "Cash Back, No Fees" Visa Credit Card to help you decide if it's right for you.
Petal® 2 "Cash Back, No Fees" Visa® Credit Card
Rewards
1% cash back on eligible purchases right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments; 2% to 10% cash back at select merchants
Welcome bonus
None
Annual fee
$0
Intro APR
None
Regular APR
28.24% - 30.24% variable
Balance transfer fee
N/A
Foreign transaction fee
None
Credit needed
Fair, Good, No Credit
Terms apply.
Pros
- No credit history required (if you do have a credit history, that does factor into the credit decision)
- No fees
- Generous cash-back rewards of up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments
Cons
- No special financing offers
- No welcome bonus
Welcome bonus
The Petal® 2 "Cash Back, No Fees" Visa® Credit Card doesn't offer a welcome bonus to new card members.
Benefits and perks
The main benefit to having the Petal 2 Visa card (outside of its cash-back rewards), is that you don't need a credit score to qualify and it can help you establish a credit history. It's an unsecured credit card, so you don't need an upfront security deposit to open an account.
Plus, your account activity is reported to all three major credit bureaus. So when you pay your monthly bill on time and in full, over time, you're more likely to see your credit score grow. By making six on-time monthly payments, you can earn a credit limit increase through Petal's Leap program.
You can also take advantage of special offers to earn 2% to 10% cash back from select local and national partner merchants. This card also has several Visa credit card perks, such as roadside dispatch, ID theft protection and discounts through Visa Offers and Perks.
How to earn and redeem rewards
Earning and redeeming cash back is easy with the Petal 2 "Cash Back, No Fees" Visa Credit Card. You can earn cash back on all eligible purchases right away, and boost your rewards with on-time monthly payments.
You'll earn up to 1.5% on eligible purchases, you start by earning 1% cash back and after making:
- Six on-time payments, you'll earn 1.25% cash back on eligible purchases
- Twelve on-time payments, you'll earn 1.5% cash back on eligible purchases
You can redeem your cash back for a statement credit, an ACH transfer or a mailed check. To receive a check or ACH transfer, you must redeem a minimum of $20. There is no minimum redemption amount for statement credits.
Rates and fees
The Petal 2 Visa Credit Card has a variable 28.24% - 30.24% APR based on creditworthiness. It also has no annual fee, no foreign transaction fee, no late payment fee and no returned payment fee.
Card comparison
Petal 2 Visa Credit Card vs. Discover it® Secured Credit Card vs. Chase Freedom Rise® comparison
| Petal® 2 “Cash Back, No Fees” Visa® Credit Card | Discover it® Secured Credit Card | Chase Freedom Rise® | |
|---|---|---|---|
| Annual fee | $0 | $0 | $0 |
| Welcome offer | None | Discover will match the cash back you earn at the end of the first year | Earn $25 for enrolling in automatic payments within the first three months of account opening |
| Rewards | Up to 1.5% cash back on all purchases | 2% Cashback Bonus® on the first $1,000 in combined purchases at gas stations and restaurants each quarter (then 1%); 1% cash back on all other purchases | 1.5% cash back on all purchases |
| Foreign transaction fees | None | None | 3% |
| Credit score requirements | Fair credit or better; No credit | New to credit or rebuilding credit | New to credit or rebuilding credit |
Petal 2 Visa Credit Card vs. Discover it® Secured Credit Card
Information about Discover cards has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication.
The Petal 2 Visa Credit Card is a solid option if you have no credit history or at least a fair credit score (580+ FICO Score). But if you have a credit history and your credit score is poor, you may need to consider a secured credit card, such as the Discover it® Secured Credit Card.
The Discover it Secured Credit Card requires an upfront deposit of $200 to $2,500 (in $100 increments), which determines your credit limit. If you're okay with that arrangement, this card has several advantages over the Petal 2 Visa card. It's more rewarding for gas station and restaurant spending and has a welcome offer.
You'll earn 2% cash back on the first $1,000 in combined purchases at gas stations and restaurants each quarter (then 1% cash back) and all other purchases earn 1% cash back. On top of that, Discover will match the cash back you earn at the end of the first year. So you'll effectively earn a minimum of 2% cash back on all purchases for the first year.
Petal 2 Visa Credit Card vs. Chase Freedom Rise®
The Chase Freedom Rise® is one of the most rewarding cards that's available if you're new to credit.
- No credit history required
- Above average flat-rate rewards
- No annual fee
- Small welcome offer
- Has a foreign transaction fee
The Chase Freedom Rise® (see rates and fees) is an unsecured cash-back credit card designed for anyone new to credit. It earns a generous 1.5% cash back on all purchases. While this matches what you can earn with the Petal 2 Visa, you get that return from day one, whereas with the Petal 2, you'll need to make 12 on-time monthly payments first.
The Freedom Rise also has a small $25 intro bonus that's easy to earn because you only need to set up automatic payments within the first three months of account opening to qualify for it. If you have a Chase bank account, such as the *Chase Total Checking® or Chase College Checking℠* with a balance of at least $250, your approval odds for this card increase.
*The Chase College Checking℠ Account is no longer available for new account openings.
This card also provides a path to upgrading to a more rewarding card as your credit grows, including the Chase Freedom Unlimited® (see rates and fees).
Is the Petal 2 Visa Credit Card right for you?
The Petal® 2 "Cash Back, No Fees" Visa® Credit Card is an appealing option for anyone who wants to start building their credit history without opening a secured credit card. Plus, you can earn up to 1.5% cash back on every eligible purchase.
However, it doesn't provide an intro bonus offer and as your credit score increases, you won't have a path to upgrading to a more rewarding card. If you have good credit or better, you'll likely be better off considering a rewards credit card with a better suite of benefits.
FAQs
What credit score do you need for a Petal 2 credit card?
You'll typically need a fair credit score or higher to qualify for a Petal 2 card, which is a FICO Score of 580+. However, if you don't have a credit score, you'll need to link your bank account or accounts and Petal will review what it calls your Cash Score to determine your eligibility.
Does the Petal 2 credit card do a hard pull on your credit?
When applying for the Petal 2 Visa Credit Card, a hard inquiry is made on your credit report. However, a hard pull is only completed after you first go through a pre-approval, which only requires a soft pull.
What is the credit limit on the Petal 2 credit card?
The credit limit for your Petal 2 Visa Credit Card is based on personal factors, such as your ability to pay and prior credit limits. If you have a credit history, that will also impact your credit limit.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best credit cards.
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Petal 2 Visa Credit Card issued by WebBank.
For rates and fees of the Discover it® Secured Credit Card, click here.
* Information about Chase Total Checking® has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the card prior to publication.
