2021 Review: Petal® 1 No Annual Fee Visa Card – For Building Credit
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The Petal 1 Card is designed to help you establish a credit history, even if you’re starting from scratch or with some negative marks. There aren’t a lot of flashy features, but with responsible use you may be able to increase your credit scores.
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Our Rating: 5 Out of 5 Stars
We give the Petal® 1 No Annual Fee Visa® Card 5 out of 5 Stars. It provides a good opportunity to improve your credit, and the app lets you easily access your account information whenever you need to.
Why We Like It
- If you haven’t yet established credit, Petal checks your banking history to give you a shot at approval
- Opportunity to establish a credit history, and potentially improve credit scores
- Can only apply if you’re pre-approved, although pre-approval doesn’t guarantee approval
- 2%–10% cash back at select merchants
- Relatively high maximum credit limit ($5,000)
- No foreign transaction fee
- No annual fee
Why It Could Be Better
- Rewards at select merchants only
If you’ve made some credit mistakes, the Petal 1 card could be a good tool for rebuilding your credit history. Because it’s designed for people with bad credit, there aren’t many benefits. Use it as a stepping stone toward a card with better benefits and a more reliable reward program.
Petal takes a modern approach by pairing its cards with a mobile app. You’ll be able to monitor one of your credit scores, pay your bill, and check your spending. It’ll even keep track of your subscription services and tell you which ones you might be able to shed to save yourself some cash.
Insider Advice: Getting the Most Out of Your Card
- Commit to being a responsible credit card user: The Petal 1 card is one of the relatively few unsecured cards for people with bad credit, meaning you don’t have to put down a security deposit to get approved and start establishing credit. Use it responsibly — pay your statement balance on time and in full each month — and you may see a boost to your credit scores.
- Get the app: The Petal card is designed to be used with the Petal app, where you can see everything you’ll need to know about your card. That includes your balance and upcoming payments, how much you’ll pay in interest if you carry a balance, and where you can earn cash back, along with budgeting and credit-monitoring tools.
- Check your Petal Offers to see where you can save: Use the Petal app to see your Petal Offers — local merchants where you can earn 2%–10% cash back. You don’t need to do anything to activate or enroll in the offers; they’ll be loaded onto your card automatically when they’re available. Just make purchases as normal, paying with your Petal card, to claim your offers.
The Petal 1 doesn’t have traditional rewards, but it does come with the Petal Offers program. You’ll need to check the Petal app to see which local merchants you can earn cash back with.
These merchants are automatically loaded to your account as long as it’s in good standing. Reward rates vary from 2%–10% cash back.
The cash back you earn will automatically be added to your Cash Back Wallet, found in the Petal app or online. You can then redeem your cash back rewards in the form of statement credits at any time, provided your account is in good standing. It’ll show up as “Cash Back Credit” on your statement.
If the cash back you want to redeem is over $20, you can call Petal at 1-855-697-3825 to request a check or an ACH transfer to your bank account.
- Petal Offers: Earn 2%–10% cash back at select local merchants. Current offers are automatically added to the card and can be checked in the Petal app. Use the card for purchases as normal to claim Petal Offers.
- Free credit score: See one of your credit scores, based on your Experian credit report.
- Auto Rental Collision Damage Waiver: Decline the rental agency’s insurance to get coverage for damage and theft of eligible rental cars.
- Roadside Dispatch: Call 1-800-847-2869 anytime for help on the road, including tows, jumpstarts, and tire changes. Third-party fees apply.
The Terms & Fees
|Purchase APR||Balance Transfer APR||Cash Advance APR|
|Annual Fee||Foreign Transaction Fee|
|Balance Transfer Fee||Cash Advance Fee|
|Penalty APR||Late Fee||Returned Payment Fee|
|None||Up to $40||$29|
The Bottom Line
The Petal® 1 No Annual Fee Visa® Card could be a great way to establish credit. The rewards program is interesting, requiring you to check the app to find out which local merchants are eligible. But for a card with these credit requirements and no annual fee, the range of 2%–10% cash back is really good.
The Petal app lets you redeem rewards, analyze spending, keep track of subscriptions, and monitor one of your VantageScore 3.0 credit scores, among other things.
However, the card has few benefits, so if you’re able to improve your credit, consider moving on to a better card. Take a look at some of our best reward credit card picks for when you’re ready to make the move.
How Do I Apply for the Petal 1 Card?
Follow the link below to begin the pre-approval process, which won’t affect your credit scores. You’ll only be allowed to apply if you’re pre-approved. If you do apply, that will require a hard inquiry on your credit reports (normal for credit applications), which can negatively affect your scores slightly.
Petal will typically provide an instant decision, but in some cases, it may ask for more information.
What Credit Scores Do You Need to Get the Petal 1 Card?
The Petal 1 Card is designed for people with poor credit, so it’s relatively accessible even if you’ve struggled with creditworthiness in the past.
If you have a credit history, Petal will check it when you apply (just like most credit card issuers). But if you haven’t established any credit or don’t have enough history to calculate credit scores, Petal will need to connect to your bank account to check your banking history.
In this case, Petal will determine a “Cash Score” based on how you earn and spend money. Your Cash Score will be used for the application decision.
Frequently Asked Questions
What benefits come with the Petal 1 credit card?
The Petal 1 No Annual Fee Visa offers cardholders the ability to monitor their VantageScore 3.0 credit score based on their Experian credit report, rental car insurance, and roadside dispatch.
Take a look at all the benefits for more information.
What’s the difference between the Petal 1 and Petal 2 credit cards?
There are a few differences between the Petal 1 card and the Petal® 2 Cash Back, No Fees Visa® Card (Review). While the Petal 1 is designed for people with bad credit, the Petal 2 is geared towards people with limited or no credit. The Petal 2 also features a flat rewards rate that can be increased with on-time payments.
Alternatives to the Petal 1 No Annual Fee Visa Card
Evan graduated from SUNY Oswego with a degree in journalism and creative writing. In his professional writing career, he strives for precision and comprehension in his work. He’s written news articles, blog posts, and copy, working across a slew of different mediums. With in-depth research and great care for accuracy and detail, he now works to bring you the most up-to-date credit information.
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