Petal 2 Visa Credit Card Review: Offering Good Starter Credit  

GOBankingRates Score

4.5
Quick Take: The Petal 2 Visa Credit Card is designed for those with no credit history or a weak credit score. Applicants without a credit score are screened through Petal's proprietary scoring process, known as Cash Score. This rating focuses on banking history, including savings and checking accounts as well as spending history. Many Petal 2 applicants with a solid banking history are approved, even when their credit score prevents access to another "starter" card.
  • Rewards
    4.0
  • Fees
    5.0
  • App Features
    5.0
  • Credit Score Reporting
    4.0
How did we calculate this?

Pros

  • Pre-approval requests available
  • No fees required
  • Rewards offered

Cons

  • Low account limits
  • No 0% introductory APR or similar offers
  • No new account bonus

Petal 2 Credit Card Overview

Applying for a credit card with a less-than-stellar credit score can be frustrating. A credit score can be affected by a few late payments, a high level of debt, or high credit utilization, which is the ratio of credit used to the total credit available. 

When a credit score takes a hit, it can take a significant amount of time to improve.

Many applicants with poor credit turn to secured cards as a means of rebuilding credit. Secured cards, however, require a deposit of cash before they can be used. The cash sits on the account as a credit to guarantee that the outstanding balance will be paid.

The Petal Visa card series issued by WebBank serves as a good alternative. When evaluating applicants, the issuer uses credit scores, if available, but can also turn to its own “Cash Score” approach with banking history. The result for applicants with lower credit is an easier approval process. Petal 2 also provides a good starter account for credit card newbies.

Once approved, Petal 2 users benefit from features not present in many other starter cards. Although the opening account limit may be set low at $300, with good payment history, the limit rises to a maximum of $10,000. The card offers spending rewards and charges a variable interest rate ranging from 13.24% to 27.24%. 

A fraud protection feature is offered, which monitors the account for suspicious activity and notifies the user. Users also have the option of freezing the account anytime in case of loss or theft of the card — or for any other reason — which can be accomplished immediately through the mobile app. 

Also, in contrast to other starter cards, Petal 2 does not require an opening deposit. This is a welcome feature for anyone with a strict limit on the amount of idle cash they can put into a credit card account to guarantee repayment.

Key Features

Here are some of the Petal 2 Credit Card’s most impressive features.

Rewards

Petal 2 cardholders earn cash back rewards on every purchase. The normal range on this feature is 1%, but with six months of on-time payments, the rate is raised to 1.25%. After 12 months of on-time payments, that rate will increase to 1.5%. The card also features up to 10% cash back with select merchant partners. The mobile app can search for these enhanced reward rates offered by nearby merchants.  

However, Petal does not offer a new account bonus or rewards bump, unlike some student starter cards.

Fees

While offering a rewards rate equal to most competitor cards, Petal 2 has one strong advantage: No fees.

Petal 2 scores the maximum on fees, as it doesn’t charge any. There are no fees on late payments or over-limit spending. Petal 2 also does not charge a fee for foreign transactions, which makes it useful for traveling abroad or ordering something online from an overseas vendor. Nor is there an annual fee. 

The list of penalties and fees that other credit cards charge can get long, and the result can be a racked-up, high-interest balance over and above a person’s actual spending. Petal 2 customers avoid this common trap, making it easier to pay down balances and keep the monthly payments under control.

App Access

The Petal 2 mobile app includes several useful features that help users monitor their spending and credit scores. A payments calculator shows just how much interest will be charged to the account depending on the size of the monthly payment.

There’s also a monthly budget feature that provides information on planned spending and the account’s available credit. With this feature, users can set a monthly figure and track the spending and remaining budget as they change through the month. The Petal 2 app also tracks the amount of money spent at each merchant and updates this amount as new spending takes place. 

Credit Score Reporting

Keys to building a good credit score are on-time payments and keeping credit utilization low. By receiving regular reports from creditors, the credit bureaus get a better picture of how an individual is handling their debts and accounts. 

Petal 2 offers monthly credit reporting to all three major bureaus: Experian, Equifax and TransUnion. When users are approved for the card’s Cash Score rating, they won’t be dinged for a credit application, which can impact their bureau credit score.  

Credit monitoring is another useful feature that will keep cardholders abreast of their current creditworthiness. Knowing a credit score makes dealing with potential lenders, such as auto lenders or mortgage brokers, much easier.

Good To Know

Petal 2 can be linked to GooglePay or ApplyPay. These are digital wallet platforms for Android and iPhone users, respectively, that allow in-app, in-person or online purchases.

Petal 2 vs. Competitor Credit Cards

While the Petal 2 Visa Credit Card is great for some, it may not be a great choice for others. Here are a few alternatives to consider.

Discover it Secured

The Discover it Secured credit card offers unlimited 1% cash back, with a raise to 2% on restaurants and gas stations for up to $1,000 in purchases every quarter. Like the Petal 2 card, there’s no annual fee and no penalty APR charged for late payments. The Discover it Secured card also offers a matching rewards bump at the end of the year. 

Capital One QuicksilverOne

Capital One QuicksilverOne is another option for those with low credit scores. At 1.5%, the rewards rate beats Petal 2’s initial rate. With QuicksilverOne, there’s no foreign transaction fee. The card does not offer an introductory APR, and the variable rate is 26.49%.

As with most starter and secured cards, good behavior merits a more useful credit account. The issuer will consider raising the credit limit after six months of use and on-time payments, and the card also features credit monitoring and fraud protection.

How To Apply

For a Petal 2 Visa card, applicants must be U.S. citizens with a valid Social Security card or taxpayer identification number. The minimum age for applicants is 18, and they’ll have to show sufficient monthly income Applicants are also asked to list major financial obligations, such as outstanding loans or mortgages, which help the issuer determine the credit limit and interest rate. 

Go to the Petal website and follow the prompts given. The application takes just a few minutes. Applicants will need to submit the following information:

  • Visit PetalCard.com, and click on the “See Card Offers” tab.
  • A fillable page will load asking for some basic personal information.
  • The issuer will screen these details and then offer either a Petal 1 or Petal 2 credit card.
  • The applicant then completes the process by clicking the Submit button.

Petal 2: A Great Choice for Those Looking To Build Credit

The Petal credit card family gives just about any adult access to credit, which can be essential in emergencies or between paychecks when their bank account’s available cash is low.

Six months of on-time payments qualify the cardholder for an increased credit limit and a higher cash back rate.

This is a good starter card for those who don’t have much or any credit and want to build it up quickly. Not everyone will qualify, though.

Petal 2 Visa vs. Petal 1 Visa

The good news is that even for those who don’t qualify for Petal 2, a Petal 1 card is accessible. However, Petal 1 card charges a higher variable interest rate range –19.99% to 29.49%– and will also charge fees for late payments. 

The Petal 1 also offers a good starter account with no annual fee. The main difference is that fees will be charged for late payments or spending over the credit limit. No rewards are offered on Petal 1 purchases, but cardholders do have access to Petal Offers, which are bonus rewards available through the card’s partner merchants.

The Petal 1 gives cardholders the chance to increase their credit limit after six months of making on-time payments.

Final Take

The Petal 2 Visa Credit Card is an excellent option for those in the market for a first credit card. Its budgeting and credit monitoring features are also well designed for those who need to keep close track of their credit score and are trying to improve this important financial metric.

Editorial Note: This content is not provided by Petal. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Petal.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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About the Author

​​A writer and editor with more than 100 book credits in the juvenile and young adult non-fiction format, Tom Streissguth has mastered the craft of explaining complex, difficult subjects clearly. His books have covered history, geography, economics, media and current affairs; he's also written biographies of historical figures for Lerner, Enslow, Facts on File, Greenhaven and other major educational publishers.

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