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Petal® 2 "Cash Back, No Fees" Visa® Credit Card review

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A no-annual-fee card for those without a traditional credit score.

finder.com’s rating: 2.9 / 5

★★★★★

  • Get this card if you want a cashback card and you don’t have a credit score.
  • Pick Petal 1 if you want to rebuild your credit score.
  • Apply if you have no credit history, or if you have an existing fair to good credit score of 600 or higher.

Up to 10%

Cash back

$0

Annual fee

12.99% to 26.99%

Purchase APR (variable)

New to credit

Recommended credit score

Details

Annual fee$0
Welcome OfferN/A
Rewards1% cashback, 1.25% after six on-time payments and 1.5% after 12 on-time payments, plus 2% - 10% back from select merchants
Purchase APR12.99% to 26.99% variable
Balance transfer APRN/A
Recommended minimum credit scoreNew to credit
IssuerVisa
Avatar

Review by


Kliment Dukovski is a credit cards writer. He's written over 600 articles to help readers find and compare the best credit cards. Kliment has also written on money transfers, home loans and more. Previously, he ghostwrote guides and articles on foreign exchange, stock market trading and cryptocurrencies.

Expert review

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card carries no fees and offers 1% to 10% cash back on purchases. It also offers a credit limit of $500 to $10,000. These two perks may not seem like something spectacular, but the card is designed for those with no credit history. These type of cards are rarely generous with rewards and credit limit.

Instead of checking your credit history, Petal uses proprietary algorithms to evaluate your ability to repay your debt. This will determine your credit limit.

What this card lacks, though, is no 0% intro APR period on purchases, balance transfers or both. In fact, you can’t make balance transfer at all. Also, you won’t get to earn a bonus when you sign up.

These drawbacks shouldn’t deter you. If you don’t have a credit history but you do have a solid income and low debt, Petal 2 is the closest you can get to a cashback card with a decent credit limit.

How to apply for the Petal® 2 "Cash Back, No Fees" Visa® Credit Card

Applying for the Petal® 2 "Cash Back, No Fees" Visa® Credit Card is simple:

  1. Click Apply now.
  2. Fill out the requisite information on each form to complete your application.
  3. If preapproved, Petal will alert you and invite you to fill out the full application

How Petal determines your eligibility

Anyone can apply for the credit card, even if you have no prior credit history. That’s unusual for an unsecured credit card that doesn’t charge fees. That said, the Petal® 2 "Cash Back, No Fees" Visa® Credit Card is not for rebuilding poor credit. A history of bad credit or a poor financial history will likely disqualify you from obtaining the card.

Petal will perform a soft pull during the preapproval process and a hard pull during the full approval process. Note the difference between a soft and hard pull.

petal-card-app

Why choose the Petal® 2 "Cash Back, No Fees" Visa® Credit Card over a secured card?

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card is an excellent alternative to a secured card if you have no prior credit history because you won’t need to foot the security deposit required of most secured cards.

Many secured cards can also start you with a credit limit as low as $200. The Petal® 2 "Cash Back, No Fees" Visa® Credit Card starts at a $500 minimum limit if you’re approved, and a maximum of $10,000.

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card also offers cash back on purchases. Not many secured cards offer rewards.

Is there a catch?

There isn’t a “catch,” per se. But because the Petal® 2 "Cash Back, No Fees" Visa® Credit Card doesn’t collect fees, it tries to serve only customers who can responsibly pay their card bills.

Note that you might be required to sync your bank account through a secure third-party when you apply. Petal will have read-only access, allowing them to analyze your digital finances by looking at your income, savings and spending if necessary during the pre-qualification process.

By linking your account, you may be able to find approval in circumstances that you would otherwise result in denial other credit cards. Its intuitive mobile app also allows Petal to help you monitor your spending practices.

Petal doesn’t appear to pad its bottom line through sneaky tactics — for example, it doesn’t spike your APR for late or missed payments. According to Petal’s CEO, the company makes money purely through merchant transaction fees and from consumer interest payments.

What should I know before I apply?

You must be at least 18 years old or 19 years old in AL and NE and a US resident with a valid Social Security number or Individual Taxpayer Identification Number (ITIN).

Information you’ll need

  • Full name and contact information
  • Residential status
  • Annual income, source of income and employment information
  • Social Security number and date of birth

What credit score do I need?

You don’t need a credit history to apply for the Petal® 2 "Cash Back, No Fees" Visa® Credit Card. However, Petal will first check for pre-qualification based on your credit score, so if you have credit history you’ll have a better chance of approval with a fair to a good credit score of 600 or higher.

If you don’t have a credit history, Petal may allow you to link your financial accounts, including your bank information, to prove sufficient income and a responsible history of paying your bills.

Petal 2 benefits

  • No fees. There’s no annual, foreign transaction, overlimit or even late fees.
  • No credit history required. If you have no credit score or limited credit history, your income and financial records, including your checking accounts and bill payments, may be analyzed to determine your eligibility. You can still apply if you already have a good credit history and you want to take advantage of the card’s generous fee structure.
  • Potentially high credit limit. Petal offers credit limits between $500 and $10,000. This range is higher than average compared to similar cards. However, your limit is ultimately based on your ability to pay.
  • Cashback rewards. You’ll earn 1% cash back on all eligible purchases. To reward responsible spending, that cashback value will be bumped to 1.25% after six on-time payments and 1.5% after 12 on-time monthly payments. The Petal 2 also earns 2% to 10% back at select retailers, including Gap, Old Navy, Casper and more.
  • Money-management tools. Download Petal’s associated mobile app to track your spending and upcoming payments. Streamlined information and data through the app gives you a high level view of your finances and spending. You can track all your accounts connected to Petal, as well as schedule payments.
  • Set your own spending. Petal lets you set your own spending plan to track over a given time period.
petal card account

Is “no fees” for real?

Yes. Petal really means it: You won’t pay annual fees, foreign transaction fees, overlimit fees or even late fees when you use this card.

You’re more likely to get approval with a fair to good credit score. Your credit history can also factor into your credit limit, along with the rest of your financial history.

If you want to rebuild poor credit, the Petal® 1 "No Annual Fee" Visa® Credit Card would serve you better instead.

Petal 2 drawbacks

  • No signup bonus. Unlike many of its competitors that offer signup bonuses or introductory offers, Petal has no such offer.
  • No intro APR period. Most cashback cards come with a 0% intro APR period on purchases, balance transfers or both. Unfortunately, that’s one perk you won’t get with the Petal 2.
  • No balance transfers or cash advances. Petal 2 doesn’t allow balance transfers or cash advances. You won’t really need balance transfers with this card given there’s no 0% intro APR period. But cash advances can sometimes be helpful in emergencies.

Compare both Petal credit cards with one other card

Petal® 1 "No Annual Fee" Visa® Credit Card

★★★★★

Finder Rating: 4.5 / 5

Go to site

Minimum credit score

550

Annual fee

$0

Purchase APR

19.99% to 29.49% variable

Balance transfer APR

N/A

Rewards

2% - 10% cash back from select merchants

Welcome offer

N/A

Petal® 2 "Cash Back, No Fees" Visa® Credit Card

★★★★★

Finder Rating: 2.9 / 5

Terms apply, see rates & fees
Go to site

Minimum credit score

New to credit

Annual fee

$0

Purchase APR

12.99% to 26.99% variable

Balance transfer APR

N/A

Rewards

1% cashback, 1.25% after six on-time payments and 1.5% after 12 on-time payments, plus 2% - 10% back from select merchants

Welcome offer

N/A

I got the card. Now what?

  • Spend responsibly and pay off your balance in full at the end of each month.
  • Use the accompanying Petal app regularly to see the state of your finances and spending habits and to develop better financial awareness.
  • Set up autopay in your Petal account to ensure you never miss any payments.

Bottom line

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card has no associated fees and can help you learn to use credit responsibly. And the addition of a cashback structure makes this card an even more appealing option than before. It’s a good choice if you don’t have a credit score but feel like you’re a responsible borrower.

Credit card ratings

★★★★★ — Excellent

★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

Our team evaluates credit cards to determine their value against similar cards on the market.

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Learn the details of our methodology and scoring.

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7 Comments

    Default Gravatar
    Lein
    April 8, 2019

    Can you use non-US bank or credit history to apply for Petal, or do they accept US data only? For example, if I have no US credit history but I have good bank records and credit history with a foreign bank, can I use that info to apply?

      Avatarfinder Customer Care
      Jeni
      April 9, 2019

      Hi Lein,

      Thank you for getting in touch with Finder.

      You may apply for this Petal Visa credit card even if you do not have credit score yet, so long that you are a legal U.S. resident from one of the 50 states with a valid SSN or ITIN. I’m afraid that they are not checking the applicant’s foreign bank but you may include your foreign bank’s financial details if asked.

      Please make sure though to read the eligibility criteria, features and details of the card, as well as the relevant PDS/T&Cs of the card before making a decision and consider whether the product is right for you.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

    Avatarfinder Customer Care
    Anndy
    December 20, 2018

    Hi Kelly,

    Thanks for your question.

    If you are referring to Petal card’s credit limit, this will depend on your repayment history with them. You have a big chance of getting approved for a credit limit increase if you have a good payment history. You may give Petal Card a call to check their criteria for increasing credit limit.

    I hope this helps.

    Cheers,
    Anndy

    Avatarfinder Customer Care
    Anndy
    December 20, 2018

    Hi Kelly,

    Thanks for your question.

    You need to log-in to your bank account when you apply for a Petal credit card. If you don’t have a checking account, you may use any other type of bank account but kindly note that they currently don’t support prepaid accounts.

    I hope this helps.

    Cheers,
    Anndy

    Default Gravatar
    Spooky
    October 6, 2018

    Watch out I applied and they hard pulled all 3 credit bureaus

    Default Gravatar
    Brandon
    October 14, 2017

    Does the petal card report to all three major credit bureaus?

      Default Gravatar
      Gru
      October 15, 2017

      Hello Brandon,

      Thank you for reaching out to us.

      Yes, the Petal Card still reports to all three major credit bureaus.

      Although, even if you don’t have a credit score, you can still apply for the Petal card. Petal will analyze your income and your financial records — such as checking accounts or bill payments — to determine your eligibility.

      Hope this helped.

      Cheers,
      Gru

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