Petal^®️ 1 "No Annual Fee" Visa^®️ Credit Card Review

In this Petal^® 1 "No Annual Fee" Visa^® Credit Card review, we’ll look at who the card is best suited for, its credit score requirements, key characteristics, and more. 

Let’s get started.

This Petal 1 Credit Card Review Contains: 

(Click on a link to jump to the specific section) 

• Who is the Petal 1 Credit Card for? 
• Petal 1 Credit Score Requirements
• Petal 1 Credit Card Fees
• Petal 1 Credit Card Reward
• Key Characteristics of the Petal 1
• Alternatives to the Petal 1 Credit Card 

Let’s get started.

Who is the Petal^® 1 "No Annual Fee" Visa^® Credit Card for?

This card is perfect for people with a very limited credit history or a subprime credit score. 

What’s a subprime credit score?

A subprime credit score typically refers to one that’s below 620. 

If you’re looking for a starter card or rebuilding your credit history, the Petal^® 1 "No Annual Fee" Visa^® Credit Card is one of the best options in the market today. 

Specifically designed for consumers looking at building credit, the Petal 1 “No Annual Fee” Visa Credit Card offers a limited cash back reward program rarely found for subprime cards.

The Petal 1 Visa Credit Card also helps you on your path to building credit by automatically reporting to each major credit bureau (TransUnion, Equifax, and Experian) every month.

Petal 1 Credit Score Requirements

Petal has designed the Petal 1 specifically as a credit building card. As a result, you don’t need a stellar credit report to apply. Plus, your credit score isn’t the only determining factor in the application process. 

Based on your banking history, the card issuer also calculates a “Cash Score” to evaluate your creditworthiness that factors in your income level and your on-time bill payments. As a result, linking your bank account may be needed for pre-approval. 

When applying for pre-approval, the issuer performs a soft pull (credit check) that won’t affect your credit score. The financial institution may deny your application if you don’t link your bank account. 

This holistic evaluation approach is ideal for consumers with a poor or good credit report. It also provides them with a chance to qualify for a credit limit increase and better rates as they commit to good financial habits.

Petal 1 Credit Card Fees

Oftentimes, a starter card or credit-building card will charge an annual, monthly, and foreign transaction fee. Fortunately, Petal 1 card users don’t have to pay for any of those expenses.

The only fees Petal 1 cardholders need to worry about are the $29 returned payment fee and a late fee of up to $40. 

What’s a returned payment fee?

It’s a fee levied by the card issuer when your credit card bill payment bounces.

This makes the Petal 1 one of the most affordable credit-building cards available. Additionally, the limited fees that the issuer does charge are easily avoidable with responsible credit card use. 

Petal 1 Credit Card APR

Petal 1 Credit Card comes with a regular purchase APR of 25.24% - 34.74% Variable, based on your creditworthiness. 

Note that, since this card is primarily for credit newcomers, you can’t transfer existing balances onto this card. If you have a less-than-perfect credit history and were hoping to perform a balance transfer, you might have to look elsewhere.

Petal 1 Credit Card rewards

Petal cardholders have automatic access to its Petal Perks program, something rarely found in credit cards for bad credit. The cardholder can earn 2% - 10% cash back points at select merchants, redeemable for a statement credit, ACH transfer, or a check.

Users also get access to Visa partnership benefits. 

Cardholders have access to theft coverage and roadside dispatch. Additionally, users can earn Uber credits through the Visa Local Offers scheme.

Next, let’s compare the pros and cons of the Petal Visa Card.

Key Characteristics of the Petal 1 Credit Card

Let’s have a look at some of the noteworthy features of the Petal 1 Credit Card:

• Affordable fees - Unlike many other credit building cards, the Petal 1 Visa charges no annual, monthly, or foreign transaction fees. Outside a student credit card, you’re unlikely to find lower fees. 
  
  
• No welcome bonus - Since the Petal Credit Card mainly serves as a tool for people to build and strengthen their creditworthiness, it does not offer any welcome bonus when you sign up.
  
  
• Mobile app - Cardholders can manage their finances, set budgets, track spendings, and automate payments through the easy-to-use mobile app. This feature makes it easy for consumers to build good spending habits and improve their creditworthiness. 
  
  
• High credit limit - Depending on the cardholders’ financial profile, the Petal 1 Visa Credit Card offers a credit limit ranging from $300 to $5,000.
   
• Limited rewards program - If you're looking for a better rewards program the Petal 2 “Cash Back, No Fees” Credit Card is definitely worth considering as it comes with up to 1.5% cash back on most purchases (Terms and Conditions apply). Bear in mind that the Petal 2 card has higher credit score requirements.
  
  
• No security deposit required - Unlike a secured credit card, the Petal 1 Card doesn’t require any security deposit when opening an account.
  
  As a result, you can receive this card and access a $300 minimum credit limit without any hidden depository cost. This saves you a cost you wouldn’t get back until you closed your account or upgraded to an unsecured card.
  
  
• Rebuild your credit score - Petal reports account information and payment history to each major credit bureau: TransUnion, Equifax, and Experian every month.
  
  This allows the cardholder to build credit while enjoying its cash back rewards program. Users also gain a credit line increase after six months of on-time payments. A higher credit limit in turn, can have a positive impact on your credit score.
  
  
• No balance transfers - If you were hoping to perform a balance transfer to pay off your debt without accruing further interest, you might need to look elsewhere.
  

Alternatives to the Petal 1 Credit Card

Here are some alternative cards you could consider:

• Petal^® 2 “Cash Back, No Fees” Visa^® Credit Card
• Surge Mastercard^®
• Reflex Mastercard^®

Now that we’ve examined the pros and cons and looked at some alternatives, let’s have a closer look at Petal. 

What is Petal about?

Petal’s mission to provide fair and transparent credit access has made the company one of the most highly funded and fastest-growing fintech companies in the United States.

The credit card company found early success with their first credit card - the Petal 2 Card - that offers larger cash back rewards that increase when you pay your balance back on time. The company released its 2nd card - the Petal 1 - for Americans with less-than-stellar credit histories. WebBank is the issuer of both cards. 

Final Thoughts

It’s clear that the Petal 1 Visa Credit Card stands out among the rest. It’s rare to find a credit-building card with so many perks. With a cash back reward program, low credit score requirements, no annual fee, and access to a credit line increase, the Petal 1 is a solid choice.  

If you have fair or bad credit and want an affordable way to build credit while enjoying a limited cash back rewards program, the Petal 1 Visa Credit Card is one of the best options you can find to help build credit. You can apply for this card online here.