How to use the Petal 1 ‘No Annual Fee’ Visa Credit Card

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Published on October 11, 2023 | 4 min read

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Key takeaways

If you’re looking for a credit card geared toward cardholders who don’t yet have any credit, the Petal 1 card is one of the top options to consider.
This card offers a range of useful benefits, including no annual fee, no foreign transaction fees and the opportunity to earn cash back on your eligible purchases.
While this card offers a low starting credit limit in some cases ($300), the issuer will also consider a credit line increase after six on-time payments have been made, which is another potential benefit for cardholders.

If you’re searching for a credit card to help you build credit, the Petal® 1 “No Annual Fee” Visa® Credit Card is one of the best credit cards for no credit on the market today. This unsecured card does not require you to deposit cash as collateral, which is required with a secured credit card, and it offers other credit-building features, too. Plus, the card’s issuer (WebBank) makes it easy to get approved, especially compared to other unsecured credit cards.

Before you apply for the Petal 1 Visa Credit Card, though, you should have a general idea of how to maximize this card’s perks and features. Here’s what to know about the main benefits of the Petal 1 Visa and how these benefits can work on your behalf.

Features of the Petal 1 ‘No Annual Fee’ Visa Credit Card

Wondering how to use the Petal 1 ‘No Annual Fee’ Visa Credit Card, and what the benefits are? The main benefit of the Petal 1 Visa is the fact WebBank uses alternative data to approve applicants with no credit. For approvals, the issuer looks at information, like banking history, which makes it easier to get this card with no credit history or a low credit score.

Other features of the Petal 1 Visa Credit Card include the following:

No annual fee

The Petal 1 Visa does not charge an annual fee of any kind. However, many other credit cards for no credit do charge annual fees, and some even charge hidden credit card fees.

No foreign transaction fees

The Petal 1 Visa doesn’t charge foreign transaction fees either, which can be an excellent benefit to consider if you want to use it for international travel. This helps you avoid paying extra fees for overseas purchases, which typically increase the cost of everything you purchase by 3 percent or more.

Earn a higher credit limit

The Petal 1 Visa also gives you the chance to secure a higher credit limit over time, which may be important if you get the card’s starting credit limit of just $300. Once you make at least six on-time payments on your card while maintaining or improving your credit score, you can graduate to a higher limit and more purchasing power.

Earn rewards on eligible purchases

This card also offers a cash back rate of 1 percent, which increases to 1.25 percent cash back after six on-time payments, and 1.50 percent cash back after 12 on-time payments. It also gives you the chance to earn higher rates of cash back on purchases made with participating merchants via the Petal Perks program. This isn’t the same as earning cash back on everything you buy, but it’s better than nothing.

Maximizing the Petal 1 Visa ‘No Annual Fee’ Visa Credit Card

While these features can be useful if you want to build credit quickly, how you use your card will determine whether it’s beneficial or harmful to your finances. With that in mind, we have some suggestions on the best ways to maximize the Petal 1 Visa as you build credit for the future.

Make the most of the Petal 1 Visa with the following moves:

Use it for small purchases you can afford to pay off. The Petal 1 Visa charges a variable APR of 28.49 percent to 35.74 percent when you carry a balance, so you should only buy items you can afford to pay for in cash.
Pay your bill early or on time each month. In addition to paying your credit card bill in full each month, you should make sure you always pay your bill on time no matter what.
Check which retailers offer cash back. Before you make a purchase, see which retailers are offering cash back if you use your Petal card.
Monitor your card usage with the mobile app. Use the highly-rated Petal app to monitor your spending and credit card due dates. Doing so can help you stay on top of your credit usage no matter where you are.

The bottom line

The Petal 1 Visa can be an incredibly useful tool when it comes to building credit with a credit card, but the way you go about it will make a difference in your results. By using this card carefully and wisely and making sure you never miss a payment, you can use it to boost your credit enough to qualify for a better card later on.

If you haven’t signed up for the Petal 1 Visa and are on the fence, make sure to read over our Petal 1 “No Annual Fee” Visa Credit Card review. In the meantime, read over our Visa benefits guide so you have an idea of the main credit card perks you’ll qualify for. Finally, make sure you compare other similar credit cards for no credit and fair credit, including secured credit cards and student credit cards.

Also, note that WebBank lets you see if you’re preapproved for the Petal 1 Visa without a hard inquiry on your credit report, which can help you gauge your approval odds.