The Petal Visa Credit Card is designed for the millions of Americans with limited or no credit, who are faced with the challenge of being approved for credit with no credit history.
Rather than checking the usual creditworthiness factors like a traditional credit card, such as credit scores and income, the Petal card will also check your current digital financial record by looking at your bank account, as well as other credit accounts. Petal wants to see how you make, save, and spend money, and it will use machine learning algorithms to determine whether or not you’re approved. The more accounts you connect, the better Petal can see your overall financial situation.
You’ll need to enter your bank account login details so Petal can view your account, which could make some people uncomfortable. Petal states that it uses a third party data provider to securely access your financial records, and it does not store your login credentials. You can learn more about connecting your bank account here.
Petal will also check credit reports in addition to bank accounts, which will be helpful for applicants with some credit history. This card is geared more towards people with limited or no credit, rather than bad credit. If you have bad credit, with a history of late payments or bankruptcy, you may not qualify.
The Petal credit card stands out for having no fees: no annual fee, no foreign transaction fee, no late fee, no over limit fee.
You’ll get an interesting rewards program, one that rewards you for paying on time. You’ll earn 1% cash back on all purchases initially; after 6 on-time payments that increases to 1.25% cash back; and after 12 on-time payments it increases to 1.5% cash back. Once you reach a higher cash back level, you’ll get that rate permanently — even if you end up making a late payment.
Cardholders may get a fairly high interest rate, with a range of of 15.24%–26.24% Variable, and carrying a balance with this card is not recommended. Instead, pay the full statement balance each month to avoid interest charges. This will also be good for building credit because you’ll be keeping your credit utilization low.
Petal actually encourages you to pay off your balance to avoid interest. On desktop or in the mobile app, it will show how much extra you’d have to pay if you choose to carry a particular balance from month to month, giving you a clear picture of how expensive that can be.
You can earn Uber credits with this card through the Visa Local Offers program. Just add your Petal card to your account in the Uber app, and then you’ll see a message to activate Visa Local Offers. Complete the activation and you’ll be able to browse the participating merchants to find offers near you.