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The Petal 2 Visa Credit Card offers cash back on every swipe and a solid credit line for new borrowers. This starter card may be a good choice if you have limited or no credit history; you may be asked to link your bank account so WebBank, the lender that backs the card, can see how you handle your money and decide whether to approve you. You can earn up to 1.5% cash back after making 12 on-time monthly payments.
The Petal 2 “Cash Back, No Fees” 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. Petal 2 Card is issued by WebBank, Member FDIC.
Rather than only checking the usual creditworthiness factors like a traditional credit card, such as credit scores and income, WebBank, the lender that backs the Petal card, may also check your current digital financial record by looking at your bank account. WebBank 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.
You may be asked to enter your bank account login details so the issuing bank can view your account, which could make some people uncomfortable. You can learn more about linking your bank account here.
WebBank 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’ll likely not qualify (try the Petal® 1 No Annual Fee Visa® Card (Review) instead).
The Petal 2 credit card stands out for having almost no fees: no annual fee, no foreign transaction fee, no late fee, no over limit fee. (An APR of 12.99 - 26.99% Variable applies, so you’ll be charged interest if you carry a balance.)
You’ll get an interesting rewards program, one that rewards you for paying on time. You’ll earn 1% cash back on purchases initially; and after 12 on-time monthly 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, but you will only be able to redeem rewards if your account is in good standing.
The Petal mobile app shows 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. Instead, aim to pay off your statement balance in full each month.
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.