The Petal® 2 Visa® credit card is a rare creature: an unsecured credit card for bad credit with no fees whatsoever, and that offers cashback rewards and high approval odds. However, the rewards system is somewhat complicated and not all borrowers will qualify for the Petal® 2 Visa®. Instead, many will be offered the Petal® 1, which has fees.
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The Petal® 2 “Cash Back, No Fees” Visa® credit card is a great credit card without SSN requirements that’s available to borrowers with no credit score or limited borrowing histories. When you apply for a Petal® credit card, the issuer will assess both your finances and your credit history (or just your finances, if you don’t have a credit history) to decide whether you qualify for the Petal® 1 or Petal® 2 Visa® credit card.
The lack of fees is the number one selling point for the Petal® 2 Visa® credit card. On top of that, the card boasts a high credit limit, good potential for credit building, and cashback rewards at a rate of 1%–10%.
The main downsides of the card are its complicated rewards structure, lack of introductory offers, and inability to perform balance transfers or cash advances.
Petal® 2 Visa® Credit Card Important Details
Basic card details
- Credit card issuer: WebBank
- Annual fee: $0
- Regular APR: 15.24%–29.24% (variable)
- Credit limit: $300–$10,000
- Rewards rate: 1%–10%
- Grace period: 25 days
- No late payment fees (instead, your card is temporarily suspended)
- Credit reporting to the major bureaus
- Free access to your VantageScore 3.0 credit score
- Cash advances and balance transfers are unavailable
- Account freezing available for misplaced cards
- Visa partnership benefits
- Visa Local Offers, which give you credit toward future Uber trips when you use your card with selected businesses.
Petal® 2 Visa® Credit Card Feature Breakdown
In this section, we’ll look at some of the most notable features of the Petal® 2 Visa® credit card.
The Petal® 2 Visa® boasts absolutely no fees:
- Annual fee: $0
- Late fees: $0
- Foreign transaction fee: 0%
- Returned payment fee: $0
However, if you miss a payment, your card will be temporarily suspended.
- Regular APR: 15.24%–29.24% (variable)
The APR you receive will be based on your creditworthiness. The Petal® 2 Visa® doesn’t offer a 0% introductory APR, as many other cards do.
The Petal® 2 Visa® credit card has a 25-day grace period (beginning on the first day of the new billing cycle).
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.
Initially, your Petal® 2 Visa® credit card will earn 1% cash back on all of your purchases. However, if you make six monthly payments on time, this will increase to a 1.25% cashback rate. If you make 12 monthly payments on time, it will increase to a 1.5% cashback rate.
Additionally, you can earn 2%–10% cash back on purchases made with select merchants.
Once you’ve accumulated cashback rewards with the Petal® 2 Visa®, you can redeem them as a statement credit. If you want to redeem over $20 of cashback rewards, you can ask for a check or an ACH bank transfer.
The Petal® 2 Visa® gives you an initial credit limit of $300–$10,000. To find out your credit limit, check your monthly statement, or use the settings tab of your Petal account online.
Credit limit increases
Petal credit card holders are automatically considered for credit limit increases at regular intervals, meaning you may be offered a credit limit increase without needing to request one.
The Petal app also gives you specific information about steps you can take to increase your credit limit.
The Petal® 2 Visa® credit card reports to all three credit bureaus—Equifax, TransUnion, and Experian. Information can take up to a couple of months to show up on your credit report.
The information they report includes:
- The date they opened your account
- Your credit limit
- Your balance
- Your on-time payments
- Your missed or late payments
The Petal® 2 Visa® credit card reports credit activity to all three major credit bureaus, which is an important factor in building credit.
Because Petal credit cards report your information to each agency, it’s important to keep up with your monthly payments so that your credit score can keep improving. A good credit score opens doors for even better credit cards and loans in the future.
To help you keep tabs on your credit situation, the Petal app gives you your VantageScore 3.0 credit score from Experian every month. VantageScore credit scores are less widely used than FICO credit scores, but they’re still a helpful guideline for you to keep track of your credit-building progress.
Credit Score Requirements
Petal uses two metrics to evaluate your eligibility for the Petal® 2 credit card: your credit score, if you have one, and something called your “cash score.”
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,” which is based on the money you make and the bills you pay.
To get an idea about your chances of qualifying for the Petal® 2 Visa®, you can apply for preapproval online. This will help you to decide whether it’s worth getting a hard inquiry (a mark showing that you’ve had your credit checked) on your credit report when your Petal® 2 Visa® card application is processed.
Application and Approval
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 choose between the Petal® 1 or Petal® 2 Visa® cards.
After the pre-approval process, you’ll complete the formal application, which should be quick and easy. You’ll then receive an email telling you whether you’ve been approved.
Managing Your Account
You can manage your Petal® 2 Visa® credit card account through your online Petal Dashboard.
You can pay your account online, by calling (855) 697-3825, or by mailing a check.
Checks can be mailed to the following address:
P.O. Box 1150
New York, NY 10008-1150
Lost or stolen cards
If you misplace your Petal® 2 Visa® credit card, you can freeze it on the Settings page of your Petal dashboard. You can then order a new card by calling (855) 697-3825.
Petal monitors your account for suspected fraudulent activity. If there’s an unusual charge, they may ask you to confirm that it’s yours or suspend your account.
You can email customer service at [email protected] or call them at (855) 697-3825.
You can send mail correspondence to:
Petal Card Inc.
MSC – 166931
P.O Box 105168
Atlanta, GA 30348-5168
Should You Get the Petal® 2 Visa® Credit Card?
We highly recommend the Petal® 2 Visa® credit card to anyone who wants to build credit while earning cashback rewards.
You’ll need a bit of organization to make the most of your Petal® 2 Visa® rewards, as you can only enjoy rewards rates above 1.5% on certain purchases with select businesses (you need to check your account to find out about these “merchant offers”).
Borrowers who need to perform balance transfers or cash advances should consider alternative credit cards. Additionally, if you want a higher regular cashback rate (say, 2% on all purchases), the instant gratification of welcome bonuses, or a 0% APR introductory offer, you’ll need to look elsewhere.
All in all, the rewards rate coupled with the high approval odds for less-than-perfect credit make the Petal® 2 Visa® a very appealing credit card.
Who is this card for?
- Students with part-time jobs: Although you don’t need a credit score to get a Petal® 2 Visa® credit card, the issuer will assess your finances, so you’ll have a better chance of qualifying for the card if you’re working while you’re studying. If you are, this card is a good way to get a foot on the credit ladder. With credit reporting to all three bureaus, it’ll give you a chance to establish your credit and reap some rewards at the same time.
- Anyone who hates credit card fees: The no-fees policy is the main advantage of the Petal® 2 Visa® credit card, especially if you’re worried about hidden costs or surprise fees. You’ll never have to pay any kind of fee with this credit card, including annual or penalty fees.
To determine whether the Petal® 2 Visa® credit card is right for you, take a look at how it measures up against similar credit cards on the market.
Petal® 2 Visa® Credit Card vs. Petal® 1 Visa® Credit Card
ThePetal® 1 and Petal® 2 Visa® credit cards have many similarities:
- No annual fee
- No foreign transaction fees
- No penalty APRs
- No security deposit
- Credit reporting to all three bureaus
As mentioned, the Petal® 1 Visa® is for people whose credit score and/or cash score disqualify them for the Petal® 2 Visa®. As such, people with low credit scores or poor financial histories are more likely to qualify for the Petal® 1.
However, you may find yourself qualified for both Petal card options. If you do, note that the Petal® 1 Visa® has less favorable terms than the Petal® 2 Visa® in several respects, including:
- A higher APR at 19.99% –29.49% (variable)
- A lower initial credit limit (at $300–$5,000)
- Less extensive cashback rewards
- Late and returned payment fees (of up to $40)
If you can get approved for a Petal® 2 Visa®, this card is certainly the better choice of the Petal credit card options.
Petal® 2 Visa® Credit Card vs. Deserve® Pro Mastercard
Like the Petal® 2 Visa®, the Deserve® Pro Mastercard is a great no-deposit starter card—but one that’s specifically targeted at employed immigrants wishing to establish credit in the US. The underwriting process involved in getting a Deserve® Pro Mastercard takes your employment and income into account rather than relying on your credit score.
The Petal® 2 Visa® credit card and the Deserve® Pro Mastercard have several features in common:
- They both have no annual fees or foreign transaction fees.
- They both have rewards programs.
- Neither offers cash advances or balance transfers.
However, the Deserve® Pro Mastercard also has several disadvantages:
- It has late and returned payment fees (of up to $37).
- It’s more limited in terms of how you can redeem cash back (i.e., only in the form of a statement credit).
- You need a Social Security number (whereas the Petal® 2 Visa® is available to people with only an ITIN).
- It only reports to two of the three credit bureaus (whereas Petal cards report to all three, which helps with credit building).
These limitations make the Petal® 2 Visa® credit card more favorable, overall. However, the Deserve® Pro Mastercard is a reasonable alternative, especially if you’re unable to qualify for the Petal® 2 Visa®.
Petal® 2 Visa® Credit Card vs. OpenSky® Secured Visa® Credit Card
If you have little or no credit history, the OpenSky® Secured Visa® and the Petal® 2 Visa® are both good credit card options. You don’t need a credit score for either card, and both can help you quickly build a borrowing history.
The advantage of the OpenSky® Secured Visa® is that you can get cash advances, which Petal credit cards don’t allow. However, it also has some notable disadvantages compared with the Petal® 2 Visa®:
- There are annual fees, late fees, and returned payment fees.
- It has a lower maximum credit limit ($3,000 compared with a $10,000 maximum limit for the Petal® 2).
- There are no rewards.
- It requires a security deposit.
As such, the Petal® 2 Visa® is a better option if you qualify.