Is the Petal 1 Visa® Worth It?
Yes, the Petal 1 “No Annual Fee” Visa® credit card is definitely worth it as an unsecured credit card for credit builders. It’s a great credit card for borrowers with bad credit and borrowers with limited or nonexistent credit histories. Here’s why:
- No deposit: Finding unsecured credit cards for poor credit or limited credit histories is hard. Not to mention, many unsecured cards for bad credit charge steep annual fees. The Petal 1 is a rare low-cost option that doesn’t require a deposit.
- No fees: The Petal 1 Visa® has no annual fees or foreign transaction fees. You’ll get charged fees only if you miss a payment or if your payment bounces.
- High credit limits: This card offers credit limits of up to $5,000, which is very high for a card that accepts applicants with poor credit scores.
- Good credit building potential: The Petal 1 Visa® reports to all of the major credit bureaus and also gives you free credit scores to track your credit-building progress.
- No credit score or SSN required: You may qualify for this card even if you have no credit score, as the issuer will base your qualification on something called your “cash score” instead. You can also qualify if you have only an ITIN (an Individual Taxpayer Identification Number) but no Social Security number.
As you can see, the Petal 1 Visa® has few downsides and much to recommend it. So if you’re looking to avoid paying a deposit, it’s one of our top choices of unsecured credit cards for poor credit.
Pros & Cons
Who Is the Petal 1 Visa® Best For?
The Petal 1 Visa® is ideal for the following types of borrowers:
- People with no Social Security number: The Petal 1 Visa® is unusual in that you don’t need a Social Security number to qualify. You can qualify if you have only an ITIN (Individual Taxpayer Identification Number), which makes it a good choice for borrowers who haven’t been in the US for a long time.
- Credit builders or rebuilders with steady incomes: The Petal 1 Visa® is suitable for people who want to improve or repair their credit. Note that you won’t be eligible if you’ve filed for bankruptcy within the past 48 months, or if you’re currently serving a prison sentence. However, other borrowers who are establishing credit or rebuilding a fallen score can qualify for this card.
Rates & Fees
Fees
- Annual fee: $0
- Foreign transaction fee: None
- Late fee: Up to $40
- Returned payment fee: $29
Interest Rates
- Purchase APR: 22.99%–32.49% (variable)
If you don’t pay off your statement balance each month, you’ll be charged interest on your Petal 1 Visa® purchases. The annual rate of interest you’ll pay is represented by the credit card’s APR.
The exact APR you’ll pay is variable and depends on your creditworthiness. But in general, the Petal 1 Visa® has high APRs. As such, if you’re likely to pay off only part of your balance each month, it may be worth looking for other credit cards with lower rates.
Rewards
While the Petal 1 doesn’t have a comprehensive rewards program (e.g., 1% cash back on all purchases), you still have the chance to earn rewards through Petal Offers.
Petal Offers gives you rewards at a rate of 2%–10%, but only for purchases from select businesses. To find these businesses, you can use the Petal app, which lets you keep track of merchants who will give you rewards.
Rewards Redemption
You can redeem your Petal 1 Visa® cashback rewards as statement credits. Alternatively, if you’re redeeming more than $20 worth of rewards, you can request a bank transfer or check.
Benefits
In addition to Petal Offers, your Petal 1 Visa® gives you various Visa benefits. These include:
| Benefit | What It Means |
|---|---|
| Free credit scores | Get free VantageScore 3.0 credit scores based on your Experian credit report. |
| Zero fraud liability protection | Pay nothing at all for unauthorized purchases that someone else makes on your card (e.g., if it gets lost or stolen). |
| Help with lost or stolen cards | Get an emergency card replacement or emergency cash advances if your card gets lost or stolen. |
| ID theft protection | Get protection against ID theft and fraud. This includes one-bureau credit monitoring (alerting you of important changes to your Equifax credit report) and dark web monitoring (to look for potentially criminal use of your personal information). |
| Roadside dispatch | Get access to a pay-per-use roadside assistance program if your car breaks down (e.g., for towing or fuel delivery services). |
| Visa Offers + perks | Get a range of offers and deals on purchases like food and drink, shopping, entertainment, sports, and more. |
| Visa Local Offers | Earn credits to spend on future Uber trips when you use your Petal card to buy from selected businesses. |
Credit Limit
A high credit limit may be better for your credit score, because your score depends partly on something called the “credit utilization rate.” This is a metric that measures the proportion of your available credit you’re using, where a lower proportion is better for your credit score.
A higher credit limit makes it easier to keep a lower credit utilization rate, and a lower credit utilization rate is better for your credit score. So it’s best to get your credit limit as high as possible (and keep your balances low) to benefit your credit score.
Credit Limit Increases
Petal will consider you for credit limit increases automatically at regular intervals. This means that they could offer you a higher credit limit without you having to ask.
The Petal app also gives detailed information about how to increase your credit limit.
How to Get a Petal 1 Visa® Credit Card
Credit Score Required
The Petal website says that the Petal 1 is “designed for those with low-to-fair credit or cash flow who are seeking to improve their credit score.” 1
When Petal reviews your application for the Petal 1 Visa®, they’ll check one or both of the following:
- Your credit score: Even if you don’t have a credit score, you may still qualify for the Petal 1 Visa®. However, if you’ve already established a credit history, Petal will check it when you apply for their credit cards, so they’ll perform a hard inquiry (a credit check that is visible on your credit report and knocks a few points off your credit score).
- Your “cash score”: Your cash score is a metric Petal uses that’s based on your income and the bills you pay. Your cash score may be considered when you apply for the Petal 1 Visa® card, whether you have a credit score or not.
For a better idea of how likely you are to qualify for a Petal card, you can apply for pre-approval online. This will make it easier to decide whether it’s worth submitting an official Petal application and getting a hard inquiry (which will usually cost you points from your credit score).
How to Apply
You can only apply for the Petal 1 Visa® card online—not by phone or email. To apply, you first have to complete the pre-approval process. This takes just a few minutes, and it won’t affect your credit score.
If you pass the pre-approval stage, Petal will tell you whether you may apply for only the Petal 1 Visa® or choose between the Petal 1 and Petal 2 cards (where the Petal 2 has better terms and is designed for borrowers with better finances or better credit).
You’ll then move on to the formal application. As mentioned, Petal may assess your finances, your credit history, or both of these.
Petal will then decide whether you’re eligible for the Petal 1 or Petal 2 Visa®. And finally, they’ll send you an email to tell you whether your application has been approved.
Restrictions
Note that you won’t be eligible for a Petal card if:
- You’ve gone bankrupt within the past 48 months
- You’re currently in jail
- You’ve previously applied for or currently have a Petal card
There may also be other restrictions. For example, Petal may ask you to link your credit card to a bank account. If so, your account must be at least three months old and receive a regular income.
Building Credit with a Petal 1 Visa® Credit Card
Credit Reporting
The Petal 1 Visa® reports to Equifax, Experian, and TransUnion. After you open your Petal credit card account, information can sometimes take a couple of months to appear on your credit report. So don’t worry if your credit score doesn’t transform immediately.
The information Petal reports include the following:
- The date Petal opened your account
- Your credit limit
- Your balance
- Your record of on-time payments
- Your record of missed or late payments
This comprehensive credit reporting makes the Petal 1 card a great way for borrowers to build or rebuild credit.
Tips for Credit Building
Better credit opens doors for even better credit cards and loans in the future. Here’s how you can use your Petal 1 Visa® to improve your credit:
- Keep up with your monthly payments: Late payments can hurt your credit score and leave black marks on your credit report. Prompt payments, on the other hand, build a positive credit history to ensure that your credit score keeps improving.
- Spend less: As mentioned, your credit score depends partly on the proportion of your available credit you’re using (i.e., your credit utilization rate), where it’s better if you’re using a smaller proportion. For this reason, it’s a good idea to spend less on your card, which keeps your credit utilization rate low and, in turn, helps your credit score.
- Use Petal’s credit limit increase program: To access credit limit increases, you can follow Petal’s special program (which you should see on the “Leap” tab in your Petal app). A higher credit limit helps your credit score in the same way that spending less does—by helping your credit utilization rate to stay low (which is good for your credit).
- Monitor your credit: To help you keep track of your credit, Petal gives you your VantageScore 3.0 credit score from Experian every month. VantageScore credit scores aren’t as widely used as FICO credit scores, but they’ll still give you an idea of whether your credit is improving, and which areas of your credit need work.
Petal 1 Visa® FAQs
What bank issues the Petal 1 Visa®?
The Petal 1 Visa® is issued by WebBank.
Does the Petal 1 Visa® have a grace period?
Yes, the Petal 1 Visa® credit card has a grace period of 25 days (beginning on the first day of the new billing cycle). A credit card grace period is a window of time between the end of your billing cycle and your payment due date.
If you pay your bill in full by the due date, your purchases during the grace period won’t accumulate interest. However, if you carry a balance from the previous billing cycle, charges in the grace period will accumulate interest at the normal rate.
Can I use my Petal 1 Visa® anywhere?
Yes, you can use your Petal 1 Visa® anywhere that Visa is accepted—almost anywhere that takes credit cards. Plus, you can use your Petal 1 card abroad or to shop online with non-US vendors, and you won’t be charged foreign transaction fees.
Does the Petal 1 Visa® offer cash advances or balance transfers?
No, the Petal 1 Visa® doesn’t allow credit card cash advances (i.e., using your credit card to get money from an ATM) or balance transfers (i.e., moving debt from one credit card to another). If you need either of these services, consider other credit cards.
Can I add authorized users to my Petal 1 Visa®?
No, the Petal 1 Visa® doesn’t allow you to add authorized users.
What’s the Petal 1 Visa® customer service phone number?
You can call the Petal customer service team at (855) 697-3825. You can also email them at [email protected] or write to them at:
Petal Card Inc.
MSC – 166931
P.O Box 105168
Atlanta, GA 30348-5168
