Petal offers two Visa credit cards– the Petal 1 and the Petal 2. Both Visa cards offer a pre-approval process that will not hurt your credit score if you have one, and they are both available to those with no credit history. But how do the Petal cards compare?
Petal 1 vs. Petal 2–Differences
There are several differences between the Petal 1 and Petal 2 credit cards. Generally speaking, the Petal 2 card offers greater rewards, lower fees, a lower interest rate and higher credit limits. At the same time, it does require a higher credit score or higher Cash Score (see below) for approval.
Here are the six key differences between the Petal 1 and Petal 2 Visa credit cards:
1. Fees
While neither card charges an annual fee, Petal 1 does charge fees for late payments and return payments.
2. Credit limit
The credit limit on the Petal 1 ranges from $300 to $5,000. The credit limit on Petal 2 ranges from $300 to $10,000.
3. Cash Back Rewards
The Petal 2 card offers cash back ranging from 1% to 1.5% on every purchase. Cardholders begin with 1%, and then move to 1.25% after 6 months of on-time payments. They go up to 1.5% cash back after a total of 12 months of on-time payments.
Petal 1 does not offer cash back on everyday purchases. Both cards, however, offer up to 10% cash back on purchases from select merchants (see below).
4. Interest rate
The APR for Petal 1 is higher than for Petal 2. As of August 9, 2022, the APR on the Petal 1 card ranges from 24.49% - 33.99% Variable.
The APR for the Petal 2 card ranges from 17.49% - 31.49% Variable.
5. Credit Requirements
While Petal is designed for those without a credit history, it will consider the credit for those who have established credit history. In those cases, the credit required for approval of each card is different. Petal 2 requires better credit than Petal 1.
- Petal 1: Low to fair credit (580 to 669)
- Petal 2: Fair to good credit (670 to 739)
6. Sign up bonus
For a limited time, Petal is offering sign-up bonuses for each card. For the Petal 1 Visa card, you'll earn $25 on approval. For Petal 2, you'll earn $50 on approval. This offer ends February 28, 2021
Petal 1 vs. Petal 2–Similarities
There are several important features that both the Petal 1 and Petal 2 credit cards share.
1. Pre-Approval Process
The pre-approval process is the same for both cards. In fact, the pre-approval process does not require you to select a card in advance. You connect your bank account so that Petal can evaluate your cash flow, including both your income and expenses as reflected in your checking account. Based on this information, Petal calculates what it calls a Cash Score. Petal will then determine whether you are eligible for the Petal 1 card, the Petal 2 card, or both.
The pre-approval process does not affect the applicant's credit score. If you have a credit history, Petal does a soft pull from Experian. It's only if you decide to apply for one of the cards that Petal will make a hard inquiry on your credit.
2. No Credit Score Required
As noted above, neither card requires a credit score. This is what makes Petal unique among most credit cards. Instead, it uses a proprietary formula based on the cash flows of your checking account. Based on this information Petal generates what it calls a Cash Score, and it makes its underwriting decisions based on this information.
3. Benefits
The core benefits are the same for both credit cards. Benefits and features include roadside assistance, purchase protection and auto rental collision damage waiver. In addition, both cards offer a budgeting tool, free access to your credit score and a smartphone app. In addition, both cards work with Apple pay, Google pay and Samsung pay.
4. Cash Back Offers
While only the Petal 2 card offers Cash Back Rewards, both cards include Cash Back Offers. These offers range from 2% to 10% in cash rewards at select merchants. Eligible merchants can be located in the Petal app.
5. Credit Bureau Reporting
Both cards report payments to all three credit bureaus: Equifax, TransUnion and Experian. It also reports to SageStream. In this regard, the Petal 1 and Petal 2 can help you build a positive credit history with on-time payments.
Is Petal 1 or Petal 2 Right for You?
Both cards are ideal for those who have no credit history. The cards are also well suited for those with credit scores in the range of fair to good. In fact, within this credit score range, Petal stands out as an excellent option because neither card charges an annual fee and neither card requires a security deposit.
For those with good to excellent credit, however, Petal is not the best option. There are better cash back and travel rewards credit cards for those with credit scores of 720 or higher.
Petal 1 vs Petal 2 Video
Final Thoughts
Both the Petal 1 and Petal 2 cards are ideal for those who have not established a credit history. They both offer a pre-approval process that will not affect your credit score. At the same time, the Petal 2 card offers Cash Back Rewards, a higher potential credit limit, lower interest rates and lower fees.
