Petal 2 Visa Credit Card Review 2023: Should You Buy It?

The Petal® 2 “Cash Back, No Fees” Visa® credit card isn’t your typical starter credit card. This yellow credit card has no security deposit or annual fees, which makes it perfect for those focused on building credit. To top things off, it also offers a rewards program comparable to those on cards for people with great credit.

Is the Petal 2 credit card the real deal? Or is all this too good to be true? 

Let’s find out—

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Petal 2 Credit Card at a Glance

Full name: Petal® 2 “Cash Back, No Fees” Visa® Credit Card

Best for: Building credit history without a security deposit

Issuer: WebBank

Required credit score: No credit history

How Does the Petal 2 Credit Card Work?

If you’re trying to build a good credit history, the Petal 2 card may be your ideal partner. 

It doesn’t have an annual fee, which is rare for cards aimed at folks with bad credit. 

And you can earn up to 1.5{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} cashback.

Here’s what’s really special about the rewards structure of the Petal 2 card: It encourages responsible payment behavior. 

You’ll start earning 1{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} cashback on eligible purchases right away—and if you make 12 on-time monthly payments, you can earn up to 1.5{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} cashback. 

You can also get between 2{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} to 10{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} cash back at select merchants.

Apart from your credit score, Petal’s issuing bank, WebBank accounts for factors like income, savings, and spending before qualifying you for this card.

But what if you have no credit history?

You’ll have to allow Petal to link to your primary bank account to check your payment history. This is a common practice for issuers to help people build their credit from scratch.

How Do the Petal 2 Visa Credit Card Rewards Work?

We’ll take you through a complete breakdown of the rewards program to help you understand the perks of getting a Petal 2:

Earning Rewards

The Petal 2 card has a cool tiered system where you get rewards for being responsible and making your payments on time.

Right off the bat, you’ll earn 1{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} cashback on every eligible purchase. And once you’ve made 12 on-time monthly payments, your cashback reward level jumps up to 1.5{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} on eligible purchases. 

There’s more—you can score higher cashback (from 2{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} all the way up to 10{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa}) by purchasing from select merchants like Adidas, Gopuff, Sam’s Club, and more.

Redeeming rewards

You can redeem your Petal 2 card rewards as soon as they appear in your wallet during the next billing cycle. 

Redeem the rewards as a statement credit by logging into your Petal card account and selecting “Perks” and then “Redeem.” 

You can also redeem by directly calling Petal: Request a paper check to be mailed to you or receive a deposit to a qualifying checking account starting at a minimum of $20.

Rewards potential

We have gathered data from different government agencies to figure out how much people typically earn and spend in different categories. 

The 70th percentile of households spends around $28,431 on basic expenses.

Assuming that half of these expenses are charged to the Petal 2 card, your total yearly card spending would be about $14,215. 

This means you would earn at least $142.15 thanks to the 1{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} rewards rate. 

Once you’ve made on-time payments for the first 12 months, your rewards rate would increase to 1.5{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa}. 

This way, after the initial year, your rewards earnings would bump up to $213.22 annually.

Petal 2 Visa Credit Card: Overall Rating

Here’s our quick Petal 2 Visa credit card review and overall rating:

Petal 2 Cash Back No Fees Visa Credit Card: Fees

Here are all the key fees you should consider before getting your hands on this Petal 2 credit card:

Petal Credit Card: Pros and Cons

Here’s a quick glance at all the pros and cons of getting this credit card:

Pros

Cons

Pros—why we like it

Evaluation is based on multiple factors

Petal credit card requirements need you to be a US resident with a valid Social Security number or an individual taxpayer identification number. 

But here’s the cool part: Petal’s issuing bank goes beyond just your credit scores. 

It uses an algorithm that accounts for your income, savings, and spending to calculate your creditworthiness. 

Sounds complex, but don’t worry—all you have to do is link your bank account to dish out this information to Petal.

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No security deposit

Most cards that cater to people with bad credit ask for an upfront cash deposit as collateral—a security deposit of a few hundred dollars (usually matching your credit limit). 

You’ll only get this deposit back when you close the account or upgrade to an unsecured card. Quite the hassle, isn’t it? 

Thankfully, the Petal® 2 “Cash Back, No Fees” Visa® credit card doesn’t need any deposit.

A solid rewards program

The 1.5{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} top cashback rate on the Petal 2 equals the ongoing rate on noteworthy cards like the Capital One Quicksilver Cash Rewards Credit Card and the Chase Freedom Unlimited®. 

Mind you, you’ll need a year of on-time payments to work your way up to this top rate. But even the 1{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} base cashback rate is better than what you’ll get on most starter cards.

No fees

In “Petal 2 credit card land,” fees are extinct. 

We’re talking about:

• No annual fee.
• No foreign transaction fee.
• No penalty APR if you’re late on a payment.
• No security deposit.

Wait, how does this credit card issuer even make money? 

It’s simple—from merchant transaction fees and interest paid on revolving balances. 

So as long as you pay off your balances in full every month, you’re in the clear.

Potentially high credit limit

Starter cards are usually stingy with credit limits. But the Petal 2 Visa card is here to change the game. 

If you’re eligible (based on your creditworthiness), you could score a credit limit of up to a whopping $10,000.

But here’s the cherry on top: Even if you don’t get approved for the full $10,000, the Petal Leap program might save the day. 

You can get a credit limit increase with this program if you:

• Make at least six monthly minimum payments in a row or pay 15{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} of your statement balance, whichever is higher.
• Ensure your Vantage Score doesn’t drop by 25 points or more from your initial credit score when you got approved.

Identity theft protection

The Petal 2 credit card works in collaboration with Visa to bring you ID Navigator by NortonLifeLock. 

This tracker keeps a constant eye on your credit file, detecting any fraud attempts and patrolling the dark web for your personal information to prevent leaks.

If you ever fall victim to identity theft, a dedicated team of identity restoration specialists will immediately assist you.

Commuter benefits

The Petal 2 Visa card doesn’t come with any specific perks for commuting, but it teams up with Visa to offer Roadside Dispatch to all cardholders. 

For a fixed price per service call, this program gives you:

• Standard towing: Get up to five miles included.
• Tire changing: Make sure you have a good, inflated spare tire.
• Jumpstart: Get a boost when your battery dies.
• Lockout service (no key replacement): Get help if you accidentally lock yourself out.
• Fuel delivery: Receive up to five gallons (plus the cost of fuel).
• Standard winching: In case your car needs to be pulled out.

Petal also supports Visa Local Offers with Visa and Uber. 

With Visa Local Offers, you can earn rewards for your purchases. Shop at any of the 1,000+ featured restaurants, retailers, and coffee shops near you, and you’ll automatically earn Uber credits. 

Cons—what to consider

Applicants with a damaged credit report may not qualify

While the Petal 2 credit card doesn’t have a credit score requirement, you probably won’t qualify for this card if you went bankrupt in the last 48 months. 

Plus, if you’ve been rejected for this card before, you’ll have to wait for at least 30 days before trying again.

Need help recovering from bankruptcy? Here’s some advice:

Read more:

No bonus rewards

If you’re just starting with credit, the priority is to focus on building your credit rather than chasing after rewards. 

However, rewards are still a cool addition, so it’s worth thinking about your choices. 

Cash-back cards like the Petal 2 card are quite popular because they offer a fixed rate and are easy to manage. 

But this means the card won’t give you access to any bonus rewards for spending more in specific categories.

No Petal card cash advances

Cash advances refer to those quick loans you can get from a bank or ATM using your credit card. 

It’s worth noting that if you find yourself in urgent need of cash, the Petal 2 credit card won’t let you access these loans.

Permanent minimum payment due date

Petal won’t let you switch up your minimum payment deadline. 

If that’s a deal breaker for you, check out the card_name . 

With this card, you get to pick a due date that suits you. Just keep in mind that it does ask for a security deposit. But if you meet the criteria, you might be able to snag one for as low as $49.

Cost uncertainty

In the middle of 2023, quite a few folks who had Petal cards without any annual fees got a heads-up that their account conditions were about to change. 

Some were even told they’d be switched to a completely different card, and that meant they’d have to start paying fees. 

Petal’s website in June 2023 simply stated that “Card fees and terms might differ for members who joined before 5/16/23.”

Alternatives to the Petal 2 Card

Here’s how Petal 2 compares to similar credit cards:

Petal 2 vs. Capital One QuicksilverOne vs. Capital One Platinum

Petal 1 vs. Petal 2 vs. Indigo Mastercard

Here’s a comparison table between Petal 1, Petal 2, and the Indigo Mastercard:

Petal 2 Credit Card: Useful links

Petal 2 Credit Card Reviews

Here are some Petal 2 credit card reviews from cardholders on the internet:

“It is a great credit-building card to get to that 1.5{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} cashback rate. However, if you have other cards, then this card becomes non-competitive in rewards rate. It has some limited amount of offers with merchants for additional cashback, but they are not something to get into the bandwagon for.”

“My go-to card for most purchases. Never had any issues. Customer service is great and very responsive on the rare occasion that I needed to contact them.”

“I’ve been using a Petal 2 card for about 2 years now. I always paid my balance on time. No going over 15{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} usage on the card. They just sent an email saying that my Petal 2 is now going to become a Petal 1 card, and I have to pay $8 per month.”

Want more options? Check out these credit cards for bad to fair credit:

Is the Petal 2 Credit Card Good for Me?

If you’re new to credit and looking for a solid option, the Petal® 2 Visa® Credit Card with its “Cash Back, No Fees” feature is a fantastic pick. 

It offers a straightforward and transparent experience—with no need for a deposit and no pesky fees. 

It’s not only a good card to have while traveling but also gives you the chance of getting a higher credit limit compared to similar cards. 

On top of that, you’ll be motivated to pay your bills promptly and earn rewards, which can help you develop responsible financial habits in the long run.