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2021 Review: Petal® 2 Cash Back, No Fees Visa® Card – Start Building Credit From Scratch

Updated Jun 08, 2021 | Published Apr 09, 20217 min read

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Petal® 2 Cash Back, No Fees Visa® Card

Min Credit Level Limited Credit History
Annual Fee $0
Regular APR 12.99 - 26.99% Variable
At a glance

The Petal 2 Card is a rare unsecured card designed for people with limited or no credit. It has no annual fee and features cash back rewards, and approval is possible even if you don’t yet have a credit score.

Credit Card Insider receives compensation from advertisers whose products may be mentioned on this page. Advertiser relationships do not affect card evaluations. Advertising partners do not edit or endorse our editorial content. Content is accurate to the best of our knowledge when it's published. Learn more in our Editorial Guidelines.

Our Rating: 5 Out of 5 Stars

We give the Petal® 2 Cash Back, No Fees Visa® Card 5 out of 5 Stars. Not only could it bolster your credit, but it also provides rewards with no clear downsides.

Why We Like It

  • No credit score required (but if you do have credit scores, Petal will review them when you apply)
  • Good opportunity to start building credit, with a chance to eventually improve credit scores
  • Encourages you to save money and develop responsible credit habits
  • Up to 1.5% cash back (after 12 on-time monthly payments)
  • No foreign transaction fee
  • No annual fee

Why It Could Be Better

  • The Petal 2 Card has no obvious downsides!
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Petal® 2 Cash Back, No Fees Visa® Card
Apply Now

securely on the issuer's website

  • Min. credit levelLimited Credit History
  • Annual Fee$0
  • Regular APR12.99 - 26.99% Variable

There might not be a better option than the Petal 2 card if you have a limited credit history. Not only does it offer a way to better your credit, but it also provides rewards and a few perks. Many cards designed for limited credit provide neither.

The Petal 2 card can even help instill responsible financial habits that’ll have a lasting effect: Your cash back rate will increase as you make on-time monthly payments.

Petal also offers a mobile app to keep track of your payments (including how much interest you’ll be responsible for), your spending, and your rewards, which makes it all pretty convenient.

Insider tip

Struggling to overcome past credit problems? Check out the Petal® 1 No Annual Fee Visa® Card (Review), a similar offer designed for people with bad credit.

Insider Advice: Getting the Most Out of Your Card

  • Establish a credit history: The Petal 2 Card gives you a chance to build credit, even if you’re starting with nothing. Petal reports activity to all the major credit bureaus. If you don’t yet have credit you often have to go with a secured credit card to get started, but Petal doesn’t require a security deposit; it’ll check your bank account records to determine your eligibility instead.
  • Pay on time to bump up your cash back: Of course you’ll be paying on time — you’re trying to improve your credit, right? But you’ll have an extra incentive with this card. You start with 1% cash back, and after six on-time monthly payments that goes up to 1.25%; and after 12 on-time monthly payments, you’ll earn 1.5% cash back on every purchase.
  • The Petal app is here to help: Use the Petal app to check your balance, see upcoming payments, and access a variety of budgeting and saving tools. You can even see how much interest you’ll have to pay if you carry a balance, another nice incentive to always pay your statement balance in full.
  • Earn more cash back at select merchants: Along with your basic cash back rewards, you’ll also get 2%–10% cash back at local merchants. Check your Petal app to see where you’ll earn; no activation is necessary, just spend as normal.

The Rewards

Earning

Spending Rewards
  • 1% cash back on purchases initially
  • 1.25% cash back on purchases after 6 on-time payments
  • 1.5% cash back on purchases after 12 on-time payments

In addition to earning a flat rate for all of your purchases, you can also earn rewards through Petal Offers, which we describe below.

Redeeming

Redeeming is pretty simple with the Petal card. The cash back you earn will accumulate in your Cash Back Wallet, visible in the Petal app or your online Petal account page. From there, you can redeem your cash back in the form of statement credits as long as your account is in good standing. It’ll show up as “Cash Back Credit” on your statement.

If you want to redeem over $20 in cash back, you can also call Petal at 1-855-697-3825 to request a check or an ACH transfer to your bank account.

The cash back earned through Petal Offers isn’t separate from the cash back you earn from Petal Rewards, so you won’t have to worry about redeeming two different reward pools.

The Benefits

  • 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
12.99 - 26.99% Variable None None
Annual Fee Foreign Transaction Fee
$0 $0
Balance Transfer Fee Cash Advance Fee
None None
Penalty APR Late Fee Returned Payment Fee
None None None

The Bottom Line

If you have limited credit, the Petal® 2 Cash Back, No Fees Visa® Card would be a great choice. It’ll encourage responsible habits that can help you qualify for more advanced credit cards, and earn rewards along the way.

You’ll get a pretty high reward rate for a card like this, especially once you have 12 monthly on-time payments under your belt. You can even monitor one of your credit scores, and access two travel protections.

If you’re able to build up your credit, consider adding a stronger cash back card to your wallet. Or a travel credit card if you find yourself on the road or in the skies often. Just don’t close the Petal card, because closing credit cards could hurt your credit.

How Do I Apply for the Petal 2 Card?

Follow the link below to begin the application process.

Although most people will get an instant decision, in some cases Petal may require more information.

What Credit Scores Do I Need to Qualify for the Petal 2 Card?

The Petal 2 card is made to be an entry point for people with limited or no credit, so you won’t need a robust credit history to qualify.

If you don’t yet have enough credit to calculate a credit score, Petal will check your bank account records instead of doing a typical credit check to determine your creditworthiness. Petal will establish a “Cash Score” for you based on those records, and this score will be used to help approve or deny you.

But if you’ve built up enough credit, Petal will check it just like a normal credit card application. If you have many negative marks on your credit reports, you may not be approved; if you’re dealing with bad credit, check out the Petal® 1 No Annual Fee Visa® Card (Review).

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securely on the issuer's website

Petal® 2 Cash Back, No Fees Visa® Card
Apply Now

securely on the issuer's website

  • Min. credit levelLimited Credit History
  • Annual Fee$0
  • Regular APR12.99 - 26.99% Variable

Frequently Asked Questions

Is the Petal 2 card worth it?

If you have limited or no credit, yes. It offers a respectable reward rate and a few perks, which is pretty rare for a card like this. And it supports and rewards responsible habits while building your credit.

Check out the rewards and the benefits you’ll get with the card.

What’s the difference between the Petal 2 and Petal 1 cards?

The differences between the Petal® 2 Cash Back, No Fees Visa® Card and Petal® 1 No Annual Fee Visa® Card (Review) lie in their credit requirements and reward programs.

The Petal 2 is made for people with limited or no credit, while the Petal 1 is designed for people with bad credit.

The Petal 1 also doesn’t feature a basic reward program (aside from Petal Offers) like the Petal 2 does. Instead, the only way to earn rewards is through Petal Offers, which includes select local merchants.

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Alternatives to the Petal 2 Cash Back, No Fees Visa Card

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  • Min. credit levelBad
  • Annual Fee$0
  • Regular APR23.99% Variable
  • 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, home improvement/furnishings
  • 2% cash back at grocery stores and wholesale clubs
  • After you spend $2,500 in the 3% and 2% categories, you’ll earn 1% cash back until the quarter ends
  • Security deposit between $300-$4,900 is required to open your account upon approval
  • Bank of America will periodically review your account and return your security deposit if you qualify
  • 3% foreign transaction fee
  • No annual fee
Why We Picked It

With the Bank of America® Customized Cash Rewards Secured Card, you’ll need to make an initial deposit that’ll form your starting credit limit.

Secured credit cards are specifically designed to be easier to obtain than unsecured cards, and thus provide you an opportunity to build a positive credit history. More often than not, they don’t offer any rewards. But that’s not the case here. The Bank of America secured card not only provides good rewards (even by unsecured card standards) but even lets you choose one 3% cash back category. That gives it an edge over the Petal 2, which provides a lower reward rate for categories you can’t choose.

Overall, we usually recommend going with an unsecured card if you can get it; but if you need a secured card, this would be a great pick.

Rewards
Spending Rewards
  • 3% cash back in one category of your choice:
    • Gas
    • Online shopping
    • Dining
    • Travel
    • Drug stores
    • Home improvement/furnishings
  • 2% cash back at:
    • Grocery stores
    • Wholesale clubs
  • 1% cash back on all other purchases
  • 3% and 2% rewards only up to $2,500 spent per quarter, then 1% cash back
Key Features
  • Free credit score: Check your FICO Score 8 for free, based on your TransUnion credit report.
  • Security deposit: $300–$4,900
  • Annual fee: $0
  • Min. credit levelBad
  • Annual Fee$0
  • Regular APRSee Terms
Why We Picked It

The Discover it® Secured (Review) provides rewards and a way to build credit in exchange for a one-time initial security deposit. That deposit will form your starting credit limit.

Spending Rewards
  • 2% cash back on up to $1,000 in purchases per quarter (then 1%), at:
    • Restaurants
    • Gas Stations
  • 1% cash back on all other purchases
Introductory Bonus
  • Cashback Match: Double all cash back earned in the first year; awarded at the end of the first year

There’s a spending limit here, but the goal of secured cards isn’t really to earn rewards. The Petal card doesn’t have a spending limit, so the rewards could outpace what you’d earn with the Discover card after the first year.

The Discover card will typically be easier to get because it’s secured.

Key Features
  • FICO Credit Scorecard: Access your FICO Score 8 whenever you’d like for free, based on your TransUnion credit report.
  • Free Social Security number alerts: Discover searches for your Social Security number on thousands of risky dark web sites and will alert you if your information was compromised.
  • New account alerts: Get notified of credit inquiries and new accounts on your Experian credit report.
  • Cash at Checkout: At eligible retailers you can get cash at checkout. The extra cash will be counted as part of your purchase.
  • Refer a Friend bonus: Earn a $50 statement credit bonus for every friend you refer who’s approved, up to 10 friends per year. If your friend makes a purchase within three months of opening the account, he or she will earn a $50 bonus too.
  • Security deposit: $200–$2,500
  • Balance Transfer APR: See Terms for See Terms, then See Terms
  • No foreign transaction fee
  • Annual fee: $0
Apply Now

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  • Min. credit levelLimited Credit History
  • Annual Fee$35
  • Regular APR17.39% Variable
  • No credit check necessary to apply. OpenSky believes in giving an opportunity to everyone.
  • The refundable* deposit you provide becomes your credit line limit on your Visa card. Choose it yourself, from as low as $200.
  • Build credit quickly. OpenSky reports to all 3 major credit bureaus.
  • 99% of our customers who started without a credit score earned a credit score record with the credit bureaus in as little as 6 months.
  • We have a Facebook community of people just like you; there is a forum for shared experiences, and insights from others on our Facebook Fan page. (Search “OpenSky Card” in Facebook.)
  • OpenSky provides credit tips and a dedicated credit education page on our website to support you along the way.
  • *View our Cardholder Agreement located at the bottom of the application page for details of the card.
Why We Picked It

The OpenSky® Secured Visa® Credit Card (Review) can help build your credit, but it wouldn’t usually be your first pick.

The biggest draw for this card is that it doesn’t require a credit check, making it easier to obtain than the Petal 2 credit card (and most other credit cards). However, it requires an annual fee, doesn’t offer any rewards, and likely provides few benefits, so if you can qualify for the Petal 2, that would be the better choice.

Key Features

The card issuer states the OpenSky Visa comes with “all the benefits of a Visa card,” but doesn’t explicitly list those benefits aside from mentioning fraud protection and global acceptance.

  • Security deposit: $200–$3,000
  • Annual fee: $35
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  • Min. credit levelLimited Credit History
  • Annual Fee$0
  • Regular APR26.99% Variable
  • Earn 1% cash back on all your purchases. Pay on time to boost your cash back to a total of 1.25% for that month
  • Earn $5 per month for 12 months on Select Streaming Subscriptions when you pay on time. *Exclusions Apply
  • Enjoy no annual fee and no foreign transaction fees
  • You can help build your credit with responsible use of a card like this
  • Pick the monthly due date that works best for you
  • Be automatically considered for a higher credit line in as little as 6 months
  • $0 fraud liability if your card is ever lost or stolen
  • Monitor your credit profile with the CreditWise® app, free for everyone
Why We Picked It

While the Journey Student Rewards from Capital One (Review) is aimed towards students, that doesn’t mean you have to be a student to get it. But it does mean it’s a bit easier to get than most cards.

Because it’s designed for limited credit, the starting credit limit might be on the low side. However, you could be automatically considered for a higher credit line after six months, a nice feature for any card but particularly those at this credit level.

Rewards
Spending Rewards
  • 1% cash back on all purchases
    • Pay on time and that goes up to 1.25% cash back
Key Features
  • Access a higher credit line: You may be automatically considered for a higher credit line after six months.
  • $60 streaming credit: $5 per month for 12 months on select streaming services, when you pay on time
  • Capital One CreditWise: The CreditWise service provides free access to one of your VantageScore 3.0 credit scores, based on your TransUnion credit report. You can monitor your score over time and get alerts about any changes.
  • Capital One Second Look account monitoring: Keep an eye on your account with Second Look, and get access to account alerts to be notified of any activity on your account.
  • No foreign transaction fee
  • Annual fee: $0
Apply Now

securely on the issuer's website

Petal® 2 Cash Back, No Fees Visa® Card
Apply Now

securely on the issuer's website

  • Min. credit levelLimited Credit History
  • Annual Fee$0
  • Regular APR12.99 - 26.99% Variable

Do you have the Petal 2? Has your credit seen a boost from responsible habits? Let us know how you like the card!

Written by

Evan Zimmer

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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The responses below are not provided or commissioned by bank advertisers. Responses have not been reviewed, approved or otherwise endorsed by bank advertisers. It is not the bank advertisers' responsibility to ensure all posts are accurate and/or questions are answered.

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