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Petal 2 Review: Fee-Free Rewards and Credit-Building

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With great cash back offers and no fees, the Petal 2 Visa® Credit Card is a solid credit card all around. But there are a lot of things that make this card stand out from the rest.

First, it’s beginner-friendly. You don’t need amazing credit or a lot of history to qualify. Petal is designed to help you build credit and it rewards you for being smart about how you use and pay off your card. 

This card offers a higher credit limit than most starter cards and doesn’t charge penalty fees for late payments. It also has decent interest rates, making it less restrictive than most cards you can qualify for with fair to average credit.

The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is best for people who are working to get their credit score up and build credit.

Petal® 2 "Cash Back, No Fees" Visa® Credit Card

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  • No fees whatsoever. No late fee, foreign transaction fee, annual fee, or any-other-kind-of-fee, fee.
  • Variable APRs range from 18.24% - 32.24%
  • Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments.
  • 1% cash back on eligible purchases right away
  • 2% - 10% cash back at select merchants
  • $300 - $10,000 credit limits
  • No credit score? No problem. If eligible, we'll create your Cash Score instead.
  • See if you're pre-approved within minutes without impacting your credit score.
  • Build credit alongside hundreds of thousands of Petal card members.
  • Petal reports to all 3 major credit bureaus.
  • No deposits required
  • Card issued by WebBank
Annual Fee Intro APR, Purchases Intro APR, Balance Transfers Regular APR Credit Needed
$0 N/A N/A 18.24% - 32.24% Variable
  • Excellent
  • Good
  • Limited

Key Facts

  • Best for: borrowers with limited credit and borrowers with fair or average credit.
  • Intro offer: none.
  • Cash back rewards: earn 1% to 1.5% cash back on all purchases and between 2% and 10% at select merchants.
  • Intro APR: none.
  • Regular APR: ongoing APR ranges from 18.24% - 32.24% Variable.
  • Annual fee: $0.
  • Credit limit: between $300 and $10,000.
  • Digital card: the Petal 2 card is compatible with Google Pay™ and Apple Pay®.

Pros & Cons

Pros

  • No annual fee — There’s no catch. The Petal 2 card is free.
  • No foreign transaction fee — Use your Petal 2 card when making international purchases.
  • No late fee — Instead of being charged a fee when you miss a due date, Petal will suspend your card until you catch up on payments.
  • High credit limit — Up to $10,000, depending on your income and credit.
  • Cash back — 1% to 1.5% on everything and 2% to 10% on qualifying purchase categories.

Cons

  • No intro APR — No opportunity to pay 0% interest when carrying a balance after signing up, as many cards offer.
  • No balance transfers — You can’t move your balance from another credit card to the Petal 2.

In-Depth Analysis

Check out the features that make the Petal 2 credit card unique.

Rewards

There are two different types of cash back you can earn with the Petal 2: Petal Rewards and Merchant Offers.

Petal Rewards are cash back on everyday spending. The rewards rate for this category is between 1% and 1.50%, depending on your payment history. All Petal 2 users start out earning 1% cash back on everything but can qualify for a higher rate with enough on-time credit card payments.

After six on-time monthly payments, you get bumped into the 1.25% cash back tier. After twelve on-time monthly payments, you get bumped into the 1.50% cash back tier. 

Merchant Offers are promotional rewards you can only earn at certain stores. Qualifying purchases earn between 2% and 10% cash back on Merchant Offers.

You can even earn Rewards and Offers cash back on the same purchase.

Cash back rewards can be redeemed in the form of a statement credit, ACH transfer, or check. Just log into your account and head to your Cash Back Wallet to see your balance and redeem.

Bonus

The Petal 2 doesn’t offer a welcome bonus for new cardholders.

APR

Petal 2’s variable APR is average for an unsecured credit card. Petal 2’s interest rate is 18.24% - 32.24% Variable.

There is no penalty APR for this card.

Annual Fee

There is no annual fee for the Petal 2 Visa® Credit Card.

Fees

There is no annual fee, no foreign transaction fee, and no late payment fee for the Petal 2. But of course, that doesn’t just mean you can pay whenever you want.

Instead of a late fee, Petal will suspend your card until you pay the past due amount when you miss a payment. You’ll pay interest on the entire balance too and your late payment will still show up on your credit report.

We recommend you enroll in AutoPay if you think there’s a chance you’ll miss your payments. This requires at least a minimum payment each statement period.

Credit Building

Petal reports to the three major credit bureaus, Experian, TransUnion, and Equifax. That means each payment you make on your Petal 2 card will show up in your credit history, for better or for worse.

The best way to build credit with Petal is to use your card wisely by making your payments on time and staying well under your credit limit.

It’s important to remember that while being responsible with your Petal 2 card can help you out in the long run, using it irresponsibly can really hurt. Late payments and missed payments can bring your score down and stay on your report for seven years, and borrowing close to your limit every month can make lenders hesitant to let you borrow any more money.

No Security Deposit

Because the Petal 2 is an unsecured credit card, no deposit is required when submitting your application. Your eligibility and credit limit are determined by your credit history and income. 

Only secured cards require security deposits as collateral.

Credit Limit

Petal 2 lets you borrow between $300 and $10,000 each statement period. If you don’t get the credit limit you want after applying, Petal Leap might be able to help.

With the Petal Leap program, you can qualify for a one-time credit limit increase within six months of opening your account by keeping up with your payments and maintaining or improving your credit score. 

There are two goals you have to meet to qualify for an increase. Goal 1 requires you to make at least your minimum required payment every month by the due date for six months in a row.

Goal 2 requires you to work on your credit score. For Petal 2, this means not letting your VantageScore drop more than 25 points in six billing cycles. If you meet both of your goals, Petal will automatically evaluate your account and consider you for a higher limit. If you’re approved, you can borrow up to your new limit one month after meeting Leap requirements.

You can check your VantageScore (without impacting your credit) from the Petal app dashboard.

No Credit Score Needed

Don’t think that you won’t be eligible for the Petal 2 if you’ve never had a credit card before. You might be able to qualify even if you don’t have a credit history at all.

If you don’t have a credit score, Petal will create a Cash Score for you. This requires linking your bank account so Petal can see your cash flow and history of bill payments. This is then used in place of your credit score.

You probably won’t qualify for the lowest interest rate or highest credit limit if you’re building your credit from scratch, but you might be approved for the card.

Petal 2 Visa® Credit Card Compared

The Petal 2 Visa Card isn’t the only credit card out there for people who want to build credit and earn rewards. Take a look at some other popular options, including the Petal 1 card.

Petal® 2 “Cash Back, No Fees” Visa® Credit Card Petal® 1 “No Annual Fee” Visa® Credit Card Capital One QuicksilverOne Cash Rewards Credit Card
Fees No annual fee, foreign transaction fees, or late fees No annual fee or foreign transaction fees

Late fee of up to $40

$39 annual fee

No foreign transaction fees

Late fee of up to $40

See Rates & Fees.

APR 18.24% - 32.24% Variable 25.24% - 34.74% Variable 30.74% (Variable)
Rewards Between 1% and 1.5% cash back on everything

Between 2% and 10% cash back at select merchants

Between 2% and 10% cash back at select merchants 1.5% cash back on all purchases

5% cash back on qualifying travel

Features Credit line increase in six months

Digital card

Credit line increase in six months

Digital card

Credit line increase in six months

Digital card

Petal® 2 “Cash Back, No Fees” Visa® Credit Card vs. Petal® 1 “No Annual Fee” Visa® Credit Card: Which Is Better?

The Petal 2 Visa Card has a much better interest rate than the Petal 1 Visa Card, plus higher credit limits and no fees. But even though both the Petal cards are great for beginners, the Petal 2 is harder to qualify for. You can get the Petal 1 with a poor to fair credit score but the Petal 2 requires a fair to average score.

The Petal 1 is probably a better choice for you if you know your credit is below fair, which is defined as a FICO score between 580 and 669 and a VantageScore between 500 and 600. 

But if you can qualify for it, there are a lot of reasons to choose the Petal 2. In addition to not charging fees, the Petal 2 credit card offers much more cash back. And if you think there’s a chance you’ll need to carry a balance from time to time, you can save money going with the Petal 2 since the interest rates are lower.

» MORE: Check out our full review of the Petal 1 Visa® Credit Card

Capital One QuicksilverOne Cash Rewards Credit Card

The Capital One QuicksilverOne Cash Rewards Credit Card has a lot in common with the Petal 2. Both pay up to 1.5% cash back on everyday purchases, offer credit limit increases after six months, have no foreign transaction fees, and require at least a fair credit score.

But the Petal 2 pays up to 10% cash back at select merchants while the QuicksilverOne pays 5% cash back on all travel booked through Capital One Travel. The QuicksilverOne also charges an annual fee of $39 and has a much higher interest rate of 30.74% (Variable), nearly at the top of the Petal 2’s range. See Rates & Fees.

» MORE: Read our full Capital One QuicksilverOne Cash Rewards Credit Card review

Should You Get the Petal 2 Visa® Credit Card?

The Petal 2 Visa® Credit Card might be right for you if you want a rewarding credit card that will help you work toward your credit goals. You can get approved with average credit or even little to no credit history.

But the Petal 2 isn’t just good for a credit card you can get with fair or limited credit. It’s just a good card all-around. With no annual fee, no late fee, a relatively low APR, and up to 1.5% cash back on everything, the Petal 2 is better than most starter credit cards and competes with many credit cards for more experienced borrowers. 

If you need a credit limit greater than $10,000 or want a card that offers more travel rewards, the Petal 2 is not for you. You also may not get approved if this is your very first card, at least not with the limits and rates you want.

How to Apply

Before you apply for any credit card, it’s a good idea to check and see if you are pre-approved. You can apply for pre-approval for both the Petal 1 and the Petal 2 credit card at the same time. It takes only a couple of minutes to complete the pre-approval application and it has no impact on your credit score.

If you’re pre-approved, you can finish the application knowing that you have a good chance of getting approved for the Petal 2.

First, the application will ask for personal and contact information, including your social security number. Then, you’ll provide details about your income and housing so Petal can understand how much you make and what expenses you have.

You should receive a response telling you if you’re approved or denied very quickly after submitting.

To apply now, click the link below. The page might say “The offer you were just viewing may be invalid.” This just means Petal is making sure you see up-to-date interest rates. Just give it a moment to load and you can start your application.

Apply for the Petal 2 Visa® Credit Card.

Summary

The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is best for people with average credit. Cardholders enjoy plenty of opportunities to earn cash back, don’t pay anything in annual fees or account fees, and can borrow up to $10,000 at roughly average interest rates if they carry a balance.

You might want to apply for the Petal 2 if you want to focus on improving your credit with a fee-free cash back card.

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