Petal 2 Visa® Review
The Petal 2 Visa® is a superb unsecured starter credit card that we highly recommend.
However, it does have a couple of drawbacks, as well as some notable advantages. Here’s what you should consider before you apply:
- There are no fees whatsoever: The Petal 2 Visa® credit card has no annual fees, late fees, foreign transaction fees, account-opening fees, or any other fees.
- You’ll earn cashback rewards: The Petal 2 Visa® card gives you 1%–1.5% cashback rewards on most purchases, which is not bad at all (albeit not the best deal around).
- You can’t use it for cash advances or balance transfers: You can only use the Petal 2 Visa® for purchases; you can’t move debts from your other credit cards to your Petal card, and you can’t use it for ATM cash withdrawals
- You don’t need a credit score or SSN to apply: You may be eligible for the Petal 2 Visa® even if you have no credit history, or if you only have an ITIN (an Individual Taxpayer Identification Number) but no Social Security number.
- Borrowers with a credit history will get a hard inquiry: Although you don’t need a credit report to apply for the Petal 2 Visa®, if you do have one, you’ll get a hard inquiry (a negative mark on your credit report that shows you’ve applied for credit and that usually causes your credit score to drop by a few points).
Pros & Cons
Who Is the Petal 2 Visa® Best For?
The Petal 2 Visa® is most suitable for:
- Students with part-time jobs: Although you don’t need a credit score to get this card, the issuer will assess your finances, so you’ll have a better chance of qualifying if you’re working while you’re studying. If you are, Petal’s three-bureau credit reporting means you can establish your credit and reap some rewards at the same time.
- Anyone who hates credit card fees: There are no hidden costs to trip you up with this card, as you’ll never have to pay any kind of fee, including annual fees or penalty fees.
Rates & Fees
Fees
- Annual fee: $0
- Foreign transaction fee: $0
- Late payment fee: $0
- Returned payment fee: $0
Although this card has no late payment fees, if you miss payments, Petal may freeze your card so that you can no longer use it. They can also report your late payment to the credit bureaus.
Interest Rates
- Purchase APR: 15.99%–29.99% (variable)
APR is the annual rate of interest on a credit card. It’s charged when you don’t pay your balance in full by the end of the billing cycle, so leaving unpaid debt on this card could lead to expensive interest charges.
Rewards
Initially, your Petal 2 Visa® will earn 1% cash back on all of your purchases. If you make six monthly payments on time, your cashback rate will increase to 1.25%. If you make 12 monthly payments on time, it’ll increase to 1.5%.
Additionally, you can earn 2%–10% cash back on purchases from select merchants.
To redeem your rewards, you can request an account statement credit, a bank transfer, or a check mailed to you.
Credit Limit
A high credit limit is desirable not only because it means you have more money to spend; it’s also good for your credit score. This is because your score depends partly on a metric called the credit utilization rate (the proportion of your available credit limit you’re using), where a lower rate is better for your credit score.
A higher credit limit makes it easier to keep your credit utilization rate low, so it’s better for your credit score.
Credit Limit Increases
Petal credit card holders are automatically considered for credit limit increases at regular intervals, meaning you may be offered an increase without needing to request one.
Some cards can be a bit vague about what you need to do to get a credit limit increase. However, the Petal app gives you very specific information about steps you can take to achieve this.
Benefits
The Petal 2 Visa® features several benefits:
| Benefit | What It Means |
|---|---|
| Free credit scores | Get free access to your VantageScore 3.0 credit score based on your Experian credit report. |
| Zero fraud liability protection | Pay nothing for unauthorized purchases on your card (e.g., if it gets lost or stolen). |
| Assistance for lost or stolen cards | Get an emergency card replacement or emergency cash advances if your card is lost or stolen. |
| ID theft protection | Get fraud and ID theft protection, including dark web monitoring (to check for fraudulent use of your personal information) and one-bureau credit monitoring (letting you know about important changes to your credit report). |
| Roadside dispatch | Get access to a pay-per-use emergency roadside assistance program (e.g., for towing or fuel delivery). |
| Visa Local Offers | Get credit toward future Uber trips when you use your card with selected businesses. |
How to Get a Petal 2 Visa® Credit Card
Credit Score Required
Petal uses two metrics to evaluate your eligibility for the Petal 2 Visa® credit card: your credit score, if you have one, and something called your “cash score,” which is based on the money you make and the bills you pay.
You don’t necessarily need a credit score to get approved for a Petal 2 Visa® credit card. However, regardless of whether you have a credit score, the issuer will evaluate your cash score.
Petal doesn’t specify exactly what qualification criteria your credit score and cash score need to meet. However, it says that the Petal 2 Visa® is “designed for those with fair-to-good credit or cash flow.” 1 This means not everyone will qualify, and if you have bad credit, for example, you may be offered the Petal 1 Visa® instead.
How to Apply
You can apply for the Petal 2 Visa® card online. To do this, you first go through the pre-approval process, which only takes a few minutes (and doesn’t affect your credit score).
The pre-approval will determine whether Petal is going to let you apply for only the Petal 1 Visa® (which has less favorable terms) or let you choose between the Petal 1 and Petal 2 Visa® cards.
It will also help you to decide whether it’s worth getting a hard inquiry (a mark on your credit report showing that you’ve had your credit checked) on your credit report when your Petal 2 Visa® card application is processed.
After the pre-approval process, you’ll complete the formal application, which should be quick and easy. Petal says that you’ll usually find out whether you were approved very soon after you submit your application to them. In some cases, though, your application may need extra time to review.
Building Credit with a Petal 2 Visa® Credit Card
Credit Reporting
After you open your Petal account, it may take a couple of months for information about your Petal account to show up on your credit report. So don’t expect your credit score to transform immediately.
The information Petal reports includes:
- The date you opened your account
- Your credit limit
- Your balance
- Your on-time payments
- Your missed or late payments
Because of its comprehensive reporting, using your Petal 2 card responsibly can help you build better credit.
Tips for Credit Building
The Petal 2 Visa® will only help your credit if you manage your account responsibly. Here’s what you need to do to build credit with the Petal 2 Visa®.
- Pay all your bills on time: This will ensure that you don’t get any late payments on your credit report. Late payments look bad on your credit history when other lenders view it, and they can hurt your credit score, whereas timely payments do the opposite.
- Keep your spending down: As previously mentioned, your credit score is determined partly by how much of your available credit you’re using (i.e., your credit utilization rate). Spending less improves your credit utilization rate, which in turn helps your credit score.
- Work toward credit limit increases: A higher credit limit helps your credit score in the same way that spending less does—by making it easier to maintain a good (low) credit utilization rate. To help you get credit limit increases, Petal has a special program you can follow (which you can see by going to the “Leap” tab in the Petal app).
- Keep your account open: Older credit cards benefit the length of your credit history, which is another factor that influences your credit score. Because the Petal 2 Visa® has no annual or monthly fees, even if you stop using it, you can keep your account open free of charge to help your credit.
Petal 2 Visa® FAQs
What bank issues the Petal 2 Visa®?
The Petal 2 Visa® is issued by WebBank.
Does the Petal 2 Visa® credit card have a grace period?
Yes, the Petal 2 Visa® has a grace period of 25 days. A credit card grace period is a window of time during which you can pay off your entire card balance and avoid getting any interest charges added on.
If you pay your bill in full by the due date, Petal won’t add any interest to your purchases during the grace period. However, if you carry a balance from the previous billing cycle, anything you spend during the grace period will accumulate interest at the normal rate.
Does the Petal 2 Visa® allow cash advances and balance transfers?
No, the Petal 2 Visa® unfortunately doesn’t allow you to make cash advances (where you use your credit card to get cash, like at an ATM) or balance transfers (where you move debt from one card to another).
Can I use a Petal 2 Visa® abroad?
Yes, you can use your Petal 2 Visa® card abroad or to shop with non-US websites. If you do, Petal won’t charge any foreign transaction fees.
How long does it take to get a Petal 2 Visa®?
If Petal approves you for a credit card, the card should arrive in the mail within 6–10 business days.
Can you add authorized users to the Petal 2 Visa®?
No, you can’t add authorized users to the Petal 2 Visa®.
What’s the Petal 2 Visa® customer service phone number?
You can call the Petal customer service team at (855) 697-3825.
Alternatively, you can email them at [email protected] or send mail correspondence to:
Petal Card Inc.
MSC – 166931
P.O Box 105168
Atlanta, GA 30348-5168
