How to use the Petal 1 ‘No Annual Fee’ Visa Credit Card
Key takeaways
- If you’re looking for a credit card that can help you build credit, the Petal® 1 “No Annual Fee” Visa® Credit Card should be on your list.
- This unsecured credit card offers a range of useful benefits, including no annual fee, no foreign transaction fees and the opportunity to earn cash back on purchases with select merchants.
- While the Petal 1 offers a low starting credit limit in some cases, it’s possible to graduate to a higher credit limit with six on-time payments on the card.
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 to help you accomplish this goal. Unlike secured cards for limited credit, this unsecured credit card doesn’t require a cash deposit as collateral. The card’s issuer (WebBank) also makes it the application process simple, 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 an overview of the main benefits of the Petal 1 Visa and how they 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 that 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 qualify for this card with no credit history or a low credit score (note that approval isn’t guaranteed).
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, whereas many other credit cards for no credit do charge annual fees. Some even charge hidden credit card fees.
That said, know that some Petal cardholders have been downgraded to the Petal 1 Rise credit card after getting approved for the Petal 1 or Petal 2 cards. Since the Petal 1 Rise charges an annual fee, this is something to watch out for.
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.
Ability to earn a higher credit limit
The Petal 1 Visa also gives you the chance to secure a higher credit limit over time through its Leap program, which may be important if you start with a low credit limit of $300 or $500. 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.
Ability to earn rewards on eligible purchases
This card also offers cash back rewards 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 29.24 percent to 34.24 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 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 addition, read over our Visa benefits guide to get 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. However, there’s a chance you could get approved for another Petal credit card when you apply, including the Petal 1 Rise card. If you have better credit than you realized, you may even be approved for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card. Fortunately, WebBank lets you see which Petal credit card you can qualify for during prequalification so you can make an educated decision for your financial situation.
*The information about the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Bankrate. The card details have not been reviewed or approved by the issuer.
