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The Petal® 2 “Cash Back, No Fees” Visa Credit Card, issued by WebBank, is one of the best credit cards for those with no credit history.
With no annual fee and up to 1.5% cash back on all purchases, it aims to provide solid rewards without complexity. You don’t need a credit score to qualify and won’t be on the hook for any of the typical charges that come with credit cards, like late fees.
Here’s a closer look at how the Petal 2 card works, its rewards, and how to help you decide if it’s right for you.
Key takeaway: If you’re trying to build your credit, the Petal 2 card can be a valuable tool to reach your goal. This card also allows you to earn up to 1.5% cash back on every purchase, which is uncommon among credit-building cards. However, the rewards structure is somewhat confusing, and added perks are limited — making this card best for those who simply want to build their credit while earning rewards.
| Pros | Cons |
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Part of what makes the Petal 2 card unique is its eligibility requirements. Unlike most rewards credit cards, you don’t need a credit score to apply.
Petal uses its underwriting model to determine if applicants can manage credit. This allows them to approve those who may not qualify for other cards.
Payments on the Petal 2 card are reported to the three major credit bureaus. Using your card responsibly and making on-time payments can boost your credit score and build a credit profile.
Other card benefits include fraud protection, the ability to freeze your card within the Petal mobile app, and credit score monitoring.
The Petal 2 Card earns flat-rate cash back on eligible purchases. You’ll start at 1% cash back, but that rate can increase when you meet specific on-time payment milestones:
On top of this, you can earn 2%-10% cash back at select merchants. Petal automatically posts Merchant Offers to your account — you don’t need to enroll. Once you make a purchase at an eligible merchant, you’ll earn the bonus cash-back rate.
Cash back rewards come as Cash Back Points, deposited in your Cash Back Wallet after each billing period. You can redeem cash-back rewards for a statement credit, ACH transfer, or a mailed check. There’s no minimum redemption amount or limit on the total cash back you can earn.
The Petal 2 Card helps you build credit without the usual requirements and fees associated with credit-building cards. The card has no:
Cash advances and balance transfers aren’t allowed with the Petal 2 card, so there are no fees for either transaction. The card features a variable APR range of 18.24%-32.24% based on your creditworthiness.
With the Petal 2 card, your credit limit will vary between $300 and $10,000, based on your credit score.
This card’s maximum credit limit is much higher than most credit builder cards (and even some unsecured cards). The higher your credit limit, the more space you have to keep your credit utilization low, which can help boost your score over time.
You can also qualify for a credit limit increase through the Leap program. To do so, you must pay at least 15% of your statement balance or your minimum balance (whichever is greater) on time for six months.
The Petal 2 card is a credit-building card geared towards individuals with fair to good credit. It’s also a good option to avoid fees or a security deposit. Depending on your credit, you could qualify for a lower APR while earning cash-back rewards on card spending.
However, the Petal 2 card may not be a good fit if you want more straightforward cash back or a welcome bonus. You may qualify for cards with better rewards and perks if you have good or even excellent credit.
Conversely, if you have low credit and qualify for the higher end of Petal 2’s variable APR — which is much higher than average — you may be better off sticking to a secured or credit-builder card with lower rates.
The Petal 2 card is an excellent credit-building card, especially if you have fair credit, but there are other options. Here are some popular alternatives.
| Petal® 2 “Cash Back, No Fees” Visa® Credit Card | Capital One Platinum Credit Card | Secured Chime® Credit Builder Visa® Credit Card | |
|---|---|---|---|
| Security Deposit | N/A | N/A | $0 (must have a Chime checking account with qualifying direct deposits) |
| Regular APR | 18.24% – 32.24% variable | 30.74% variable | N/A |
| Annual Fee | $0 | $0 | $0 |
| Foreign Transaction fee | $0 | $0 | $0 |
| Late Fee | $0 | Up to $40 | $0 |
| Balance Transfer | No | Yes | No |
| Rewards | Up to 1.5% on everyday purchases | N/A | N/A |
When you’re building credit, you may have limited options for credit cards. A credit builder card like the Petal 2 card could be the best way to boost your credit score and build a positive payment history. You’ll avoid some of the typical costs associated with these cards while earning rewards on card spending.
When choosing a credit card, focus on your financial goals, spending habits, and overall lifestyle. When possible, look for cards with favorable terms and minimal fees. The right card helps you build credit without hindering your financial progress.
Opinions expressed are author’s alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.