The Petal 1 Visa Card is designed for those looking to improve their credit score. It is available to those with no credit or low to fair credit. It charges no annual fee and requires no security deposit.
Petal 1 Visa Card
The Petal 1 Visa Card uses a proprietary underwriting method to evaluate applicants with no credit history. It offers credit limits ranging from $500 to $5,000, and charges no annual fee.
- Designed for those with low-to-fair credit or cash flow who are seeking to improve their credit score.
- $0 Annual Fee
- 2% – 10% cash back from select merchants
- $500 – $5,000 credit limits
- No annual or international transaction fees.
- Build credit alongside tens of thousands of Petal Card members
- Cash flow technology may help applicants without credit history get approved
- Petal’s mobile app makes it easy to manage your money, track your spending, and automate payments
- See if you’re pre-approved within minutes without impacting your credit score
- Petal reports to all 3 major credit bureaus
- No deposits required
Pros & Cons
What we like
- Looks beyond credit score to create a cash score based on your banking history
- Offers cash back at select merchants
- No annual fee
- No foreign transaction fees
- Pre-approval process that does not affect your credit score
What could be better
- No cash back rewards on everyday purchases
- High interest rates
Rewards
The Petal 1 Visa Card does not offer traditional cash back or other Rewards. It does, however, offer cash back ranging from 2% to 10% at select merchants. The Petal mobile app uses your location to identify merchants participating in the Petal cash back program. Petal cause this program Petal Offers.
Cash back earned is added to the card holder’s Cashback Wallet the following billing cycle. Card holders can redeem cash back rewards as a statement credit or as cash in the form of a check or bank transfer for amounts over $20.
Features & Details
The Petal 1 Visa Card offers the following features:
Card Type: Student, Starter
Credit Required: No Credit, Fair Credit
Issuer: WebBank
Contactless Payment: Apple Pay, Google Pay, Samsung Pay
Rewards: Turn 2% to 10% from select merchants in the Petal Offers Program
Credit report pulled: Experian
Annual fee: $0
Foreign transaction fee: None
Benefits
The Petal 1 Visa Card offers the following benefits:
Purchase Protection & Benefits
- Purchase Protection
- Visa Local Offers
Travel Perks
- Auto Rental Collision Damage Waiver
- Roadside Assistance
Security
- EMV Chip Enabled
- Fraud Monitoring
- Freeze Account
- Zero Liability
Money Management Tools
- Budget Tracking
- Free Credit Score Access
- Smartphone App
How do I apply for the Petal 1 Visa Card?
The Petal 1 Visa Card does not require a credit history for approval. If you do not have a credit score, Petal analyzes your bank account (you link it to Petal as part of the application process) and generates what it calls a Cash Score. The Cash Score is based on factors such as bills you pay on a monthly basis and how much money you make. Petal then uses the Cash Score to evaluate the application.
If you have a credit score, however, Petal will evaluate it. The Petal 1 Visa Card is designed for those with low to average credit. If you have bad credit, the card is probably not for you.
The first part of the application is a pre-approval process. During this step, Petal performs a soft pull (will not affect your credit score) to see if you are likely to be approved for the card. While pre-approval does not guarantee that you will be approved for the card, it is a good indication that you meet Petal’s underwriting requirements. From there, you’ll be invited to apply for the Petal card, in which case a hard inquiry will be made on your Experian credit report if you have one.
You can learn how to apply for the Petal card here.
Is This Card for You?
Who the card is best for
The Petal 1 Visa Card is ideal for those with no credit history or with low to average credit. Unlike a secured credit card, it does not require a security deposit. It also charges no annual fee, and reports payments to all three credit bureaus. Its mobile app allows you to track your spending and monitor your credit. As such, it’s a good option for those with limited credit who need a credit card and want to improve their credit. It’s also a good option as a student credit card.
Who might do better with a different card
Those with good credit will be better served with a different card. For example, the Petal 2 Visa Card offers up to 1.5% cashback with absolutely no fees. It would be a better option for those with a fair to good credit score.
FAQs
Yes. It is a good card for those with no credit history or with low to average credit. Unlike other cards in this category, it does not charge an annual fee or require a security deposit.
The card does not require a credit score. For those with a credit score, however, it requires low to average credit (roughly 580 to 669). Those with bad credit will likely not qualify for the card.
Petal uses a pre-approval process that does not affect the applicant’s credit score. The pre-approval process takes just minutes. As for the application process itself, the time to approval varies based on the applicant’s specific financial circumstances.
Many have asked if the card is legit because it doesn’t require a credit score. It is a legitimate credit card. Petal has partnered with Visa, Experian, Transunion and Equifax. It has also partnered with WebBank, an FDIC-insured financial institution. It also has received funding from Peter Thiel’s Valar Ventures and Jefferies.
Petal’s founder, Jason Gross, was on the Consumer Advisory Board of the Consumer Financial Protection Bureau. Before that he was an attorney and graduated from Harvard Law School in 2012. Petal has about 100 employees and is approaching 100,000 customers.
Rating
Petal 1 Visa Card Rating
Summary
The Petal 1 Visa Card is an excellent choice for those with no credit history or low to average credit. While it doesn’t offer significant Rewards, it charges no annual fee, does not require a security deposit, provides free access to your credit score, and reports payments to all three credit bureaus.
