Is the Petal credit card worth it? April 2018
Petal credit card

Review: Petal credit card – April 2018

  • Get this card if… you despise credit card fees or have a minimal credit history.
  • Pick something else if…you want rewards for your spending.
  • All credit scores and histories welcome.

The nuts and bolts

Product namePetal credit card
Recommended credit score rangeAll scores welcome to apply
Annual feeNone
Signup bonusNone
Purchase APR17.99% to 24.99%
Intro Purchase APRNone
Intro balance transfer APRN/A
Balance transfer feeN/A
Foreign transaction feeNone
Cash advance rateN/A
Cash advance feeN/A
Penalty APRNone
Late payment feeNone
Returned payment feeNone
Overlimit feeNone
Maximum credit limit$10,000
Minimum interest charge$0.50

The basics

Many credit cards tout simplicity as a key selling point. Petal is one of them, but it stands out in two important respects: It charges no fees, and it requires no minimum credit score.

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.

That’s excellent, especially given all the other cards that pile on fees any chance they get. If you’re tired of getting hit with random charges, Petal could be the breath of fresh air you’ve been looking for.

When is Petal available — and who’s eligible?

Petal is available to consumers now, but it’s currently invite-only. To get access to the card, sign up for the wait list on Petal’s site.

Anyone can apply for the card, regardless of credit score. That’s unusual for an unsecured credit card that doesn’t charge exorbitant fees.

If you don’t have a credit score but you feel you’re a responsible borrower, consider Petal over a secured card. With a secured card, you have to put down a security deposit. Not so with Petal.

Is there a catch?

There isn’t a “catch,” exactly. But because Petal doesn’t collect fees, it tries to serve only customers who can responsibly pay their card bills.

If there’s a reason to take caution, it’s this: You’re required to share your bank account information — including your login credentials — with your application. Petal then uses this information to analyze your digital finances and assess your income and spending.

The company 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 from merchant transaction fees and from consumer interest payments.

You give up your financial privacy to Petal. But in an age of expensive credit, that might be a small price to pay to escape fees for good.

The perks

  • No fees. Petal promises no annual, foreign transaction, overlimit or even late fees.
  • No credit score required. 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.
  • No security deposit required. Without a credit score, it can be difficult to get an unsecured credit card. You’re typically limited to secured cards, which require security deposits. Petal, on the other hand, doesn’t require a deposit.

Secured cards vs. unsecured cards: What’s the difference?

You’ll also like…

  • Money-management tools. Petal offers features like automated payments and reminders to help you can pay your bill on time.

What to watch out for

Consider other cards if…

What should I know before I apply?

To apply for the Petal card, you must be at least 18 years old. You must also be a US resident with a valid Social Security number or Individual Taxpayer Identification Number (ITIN).

Always consider your options and your financial situation before you apply for a credit card.

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?

There’s no minimum credit score to apply for the Petal card. However, you’ll have a better chance of approval if you can prove sufficient income and a responsible history of paying your bills.

How to apply for Petal

Right now, you can’t apply directly for the Petal card — you must be invited. For early access to the card, join the wait list on Petal’s website.

I got the card. Now what?

  • Make timely payments. Pay your card bill online or enroll in autopay. Petal lets you set reminders to pay your card bill.
  • Avoid interest. After the close of each billing cycle, you have a grace period of 22 days to pay your balance. If you do, you won’t pay interest on your purchases. Petal has a “true” grace period — you’ll get a window of no interest each month on new purchases.

Bottom line

The Petal card doesn’t offer rewards for spending, but you won’t pay any fees for the life of the card. It’s a good choice if you don’t have a credit score yet but think you’ve been a responsible borrower.

Frequently asked questions

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2 Responses

  1. Default Gravatar
    BrandonOctober 14, 2017

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

    • Default Gravatar
      GruOctober 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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