Is the Petal 1 ‘No Annual Fee’ Visa Credit Card worth it?

If you’re looking for a credit card that will approve you when others won’t, you may be wondering whether the Petal® 1 “No Annual Fee” Visa® Credit Card* would be a good option for you.

This credit-building card may be exactly what you need — it all depends on what your goals are, what credit limit you’re hoping to get and how you plan to use your new credit card for the long haul.

This guide can help you understand the card’s features and its pros and cons so that you can decide whether the Petal 1 Visa® Credit Card is right for you and your financial situation.

When is the Petal 1 Visa Card worth it?

The Petal 1 Visa Card is most useful for consumers who have a certain credit profile and may not be able to get approved for other cards. Here are a few of the scenarios where the Petal 1 Visa Card can be well worth signing up for:

You need the issuer’s approval decision to be based on more than your credit score

If your credit score isn’t that great, you may struggle to get approved for a credit card. In some cases, you may only be able to get approved for a secured credit card that requires a cash deposit as collateral.

However, the Petal 1 Visa Credit Card is issued by WebBank, which lets consumers get approved using alternative credit data. This means you may be able to get approved with no credit score, provided WebBank likes what it sees in your banking history.

You want to build credit with minimal fees

Since the Petal 1 Visa doesn’t charge an annual fee, it’s a good option for credit-building as well as building positive credit habits. This card doesn’t charge foreign transaction fees either, so it can be a solid choice for international travel as well.

You want to earn a higher credit limit and don’t mind waiting for it

While your initial credit limit may be as low as $300, the Petal 1 Visa Credit Card also gives you the chance to earn a higher credit limit over time. With a program called Leap, you may see your credit limit increase after you make at least 6 months of qualifying on-time payments.

You plan to pay your balance in full each month

Since the Petal 1 Visa charges a high variable annual percentage rate (APR) of 29.49 percent to 34.49 percent, this card will only be worth it if you pay your balance in full every month. If you need a card that’s good for carrying debt in the short term, you’ll want to look for one with a lower interest rate.

If you ultimately decide to sign up for this card, your best bet is to only use it for purchases you can afford to pay off right away before you’re hit with exorbitant interest charges on everything you buy.

When is the Petal 1 Visa Card not worth it?

While the Petal 1 Visa Card can be well worth it for certain types of consumers, there are plenty of situations where people are better off with a different card. Here are just a few:

You want to earn rewards on spending

One major downside of the Petal 1 Visa Credit Card is the fact that you won’t earn rewards on everything you purchase. This card does let you earn 2 percent to 10 percent cash back on select purchases with participating merchants via the Petal Perks program. However, other credit cards designed for people with no credit history often let you earn cash back on everything you buy.

An example is the no-annual-fee Discover it® Secured Credit Card, which offers 2 percent cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter (then 1 percent), plus 1 percent back on all other purchases.

Your credit score is fair or better

If you have a credit score that’s considered fair — or a FICO score of 580 to 669 — you can likely qualify for an unsecured credit card with better perks and rewards on spending.

For example, the Capital One QuicksilverOne Cash Rewards Credit Card lets you earn 1.5 percent cash back on everything you buy, plus 5 percent cash back on hotels and rental cars booked through Capital One Travel (terms apply). However, you’ll have to pay a $39 annual fee.

You need a higher credit limit

Finally, consider how this card might work if you are only approved for the minimum credit limit of $300 right off the bat. This credit limit may be enough to make small purchases throughout the month, but it might not be suitable for a large purchase you’ve been planning. The low credit limit, coupled with the card’s high variable rate, might not make this a good fit for someone who was planning on paying off a large item over time.

Should you get the Petal 1 Visa Card?

The Petal 1 Visa is far from the best credit card on the market today, but it’s attainable for those who don’t have the best credit score, either due to issues with their credit in the past or due to not having much credit history to begin with. You won’t pay an annual fee either, so you can begin building credit through responsible use without paying for the privilege.

With these details in mind, you should consider this card if you need to build credit fast, and you want to do so without having to pay an annual fee or putting down collateral in order to get a secured credit card. The Petal 1 Visa even lets you get preapproved without a hard inquiry on your credit report, so you can gauge your approval odds before you decide.

The bottom line

If you’re still on the fence about this credit-building card, read our Petal 1 Visa® Credit Card review to learn more about this card’s benefits, drawbacks and details. Also, take the time to compare it to other credit cards that can help you build credit. If you’re in college, you might also consider a student credit card for your everyday spending needs.

In the meantime, take steps to start building your credit score through other means. You can do so by making your monthly loan payments on time (if you have any), paying down any unsecured debt you may have and using apps like Experian Boost to increase your credit score for free.

With some upfront work on your credit and the Petal 1 Visa in your arsenal of tools, you can be on your way to having good or excellent credit in no time.

*Information about the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Bankrate. Card details have not been reviewed or approved by the issuer.