Petal Credit Cards have emerged as some of the most innovative tools for building credit in the U.S. With a strong focus on transparency, technology, and accessibility, Petal credit cards offer a unique alternative to traditional credit-building tools.
Whether you’re new to credit, rebuilding, or simply tired of annual fees and hidden charges, this comprehensive Petal Credit Cards review will guide you through what makes the Petal 1 and Petal 2 cards so effective — and who should consider applying.
Table of Contents
- What Are Petal Credit Cards?
- Petal 1 vs. Petal 2: Key Differences
- Who Issues Petal Credit Cards?
- Features & Benefits
- How Petal Cards Help Build Credit
- Fees and Interest Rates
- Petal Mobile App Experience
- Pros and Cons of Petal Credit Cards
- Who Should Consider a Petal Credit Card?
- How to Apply for a Petal Credit Card
- Petal Credit Cards Customer Reviews
- Frequently Asked Questions (FAQs)
- Final Verdict
1. What Are Petal Credit Cards?
Petal Credit Cards are unsecured credit cards designed for people with limited or no credit history. Created by the fintech company Petal, these cards focus on helping users build credit responsibly without charging unnecessary fees.
There are two main options:
- Petal 1 “No Annual Fee” Visa Card
- Petal 2 “Cash Back, No Fees” Visa Card
Unlike secured cards, Petal doesn’t require a deposit and uses alternative underwriting methods like income and spending history to determine creditworthiness.
2. Petal 1 vs. Petal 2: Key Differences
| Feature | Petal 1 | Petal 2 |
|---|---|---|
| Credit Score Requirement | Poor to Fair (No score OK) | Fair to Good |
| Fees | No annual fee, some late fees | No fees at all |
| APR Range | 25.24%–34.74% variable | 18.24%–32.24% variable |
| Cash Back | Up to 10% with select merchants | 1%–1.5% on all purchases |
| Credit Limit | $300–$5,000 | $300–$10,000 |
| Reports To | All three major credit bureaus | All three major credit bureaus |
Both Petal cards report to Equifax, Experian, and TransUnion, which is critical for building a solid credit history.
3. Who Issues Petal Credit Cards?
Petal credit cards are issued by WebBank, a well-known financial institution that partners with many fintech startups.
Petal leverages its technology platform to evaluate alternative financial data — like your bank account activity — in addition to your credit report.
4. Features & Benefits
✅ No Annual Fee
Both cards have no annual fees, which is great for users building credit on a budget.
✅ Cash Back Rewards
Petal 2 offers up to 1.5% cashback after 12 on-time monthly payments. Petal 1 gives limited cash back via select merchants.
✅ No Security Deposit
Unlike secured cards, there’s no upfront deposit, making Petal an excellent starter card.
✅ Reports to All Major Bureaus
Build credit fast with on-time payments that are reported to all three credit bureaus.
✅ Pre-Approval Without Hard Pull
Petal offers a pre-approval tool that won’t affect your credit score, allowing you to check eligibility risk-free.
5. How Petal Cards Help Build Credit
One of the biggest advantages of Petal credit cards is how well they integrate credit-building features.
- Monthly Reporting to Experian, Equifax, and TransUnion
- Credit Score Tracking via the mobile app
- Payment History Monitoring to encourage timely payments
If used responsibly, your credit score can improve significantly in just 6–12 months.
6. Fees and Interest Rates
Petal 1
- APR: 25.24%–34.74% variable
- Late Fee: Up to $40
- Annual Fee: $0
Petal 2
- APR: 18.24%–32.24% variable
- Late Fee: None
- Annual Fee: $0
While Petal 2 has a lower APR and no late fees, Petal 1 is designed for those with lower scores or no history at all.
7. Petal Mobile App Experience
The Petal app is one of the card’s standout features. It includes:
- Real-time balance updates
- Spending categories
- Budgeting tools
- Credit score tracker
- Push alerts for due dates
The app is available for both Android and iOS and integrates easily with your bank accounts to analyze spending behavior.
8. Pros and Cons of Petal Credit Cards
✅ Pros
- No annual or hidden fees
- Great for credit newbies and rebuilders
- Cash back rewards
- Transparent approval process
- Mobile app with financial insights
❌ Cons
- APRs can be high
- Credit limits start low for some users
- Petal 1 lacks robust rewards
- No balance transfer or cash advance features
9. Who Should Consider a Petal Credit Card?
Petal credit cards are ideal for:
- Students or young adults with no credit
- Immigrants or residents new to the U.S. credit system
- Credit rebuilders who want an unsecured option
- Anyone tired of paying fees for basic credit cards
10. How to Apply for a Petal Credit Card
Step 1: Pre-Qualify Online
Visit the official Petal website and fill out the pre-approval form — no hard credit check required.
Step 2: Provide Financial Info
You may be asked to connect your bank account for alternative underwriting, especially if you have limited credit history.
Step 3: Choose Your Offer
You’ll be matched with either Petal 1 or Petal 2 based on your financial profile.
Step 4: Accept and Activate
If approved, accept the terms and activate your card once it arrives.
11. Petal Credit Cards Customer Reviews
⭐ Trustpilot Rating: 4.3/5
Users highlight:
- Ease of approval for new credit users
- Helpful app for tracking spending and due dates
- Lack of fees compared to other beginner cards
🚩 Common Complaints:
- Credit limit increases are slow
- Some users report bugs in the app
- APRs are high for those who carry balances
12. Frequently Asked Questions (FAQs)
Is the Petal card legit?
Yes, Petal is a legitimate fintech company partnered with WebBank, a federally regulated issuer.
Do I need a credit score to apply?
No. Petal uses both traditional and alternative financial data to assess applications.
Does Petal increase your credit limit?
Yes. With responsible usage, Petal can automatically raise your limit over time.
Can I use the Petal card internationally?
Yes, it works anywhere Visa is accepted globally, and there are no foreign transaction fees.
13. Final Verdict: Is Petal Credit Card Worth It?
If you’re just starting your credit journey or want a no-fee card that grows with you, Petal credit cards are a strong option. With their modern tech, transparent terms, and real credit-building potential, both Petal 1 and Petal 2 provide a valuable financial tool for underserved consumers.
While they won’t offer travel perks or premium rewards, Petal credit cards do exactly what they promise — help you build and manage credit with minimal hassle.
Summary
- Petal 1 is great for limited or bad credit.
- Petal 2 is best for fair to good credit with cashback perks.
- No fees, credit bureau reporting, and a smart app make them standout choices for first-time cardholders.
