Petal® 2 “Cash Back, No Fees” Visa® Credit Card review: Build your credit, skip the fees
Looking for a low-cost way to build your credit? This card can get you there and you’ll earn cash back in the process.
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Snapshot
5.0
Bottom line
Despite the Petal® 2 Visa®’s limited cardholder benefits, it stands out as an excellent tool for credit builders. With no annual fee and a solid cash back rate, this starter card has a lot to offer.
BEST FOR CREDIT-BUILDING WITH CASH BACK
Intro offer
N/A
Rewards rate
1% - 1.5%
Annual fee
$0
Regular APR
18.24% - 32.24% (Variable)
4.1
Cardholder rating
Extra perks
Meets needs
Online tools
Customer service
5.0
Bankrate score
Cost of membership
Ease of building credit
APR
Features
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Petal® 2 “Cash Back, No Fees” Visa® Credit Card: A credit-building tool with earning potential
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card issued by WebBank is one of the best no annual fee cards, especially if you’re focused on building credit. Though its perks are few, this card has a few features that stand out among cards geared toward those with limited or no credit histories.
Cardholders earn a respectable cash back rate on eligible purchases and the issuer rewards positive credit behaviors with elevated cash back earnings. However, the rewards structure might be complicated for credit newbies, and there are other card options for credit beginners with welcome bonuses. Still, the Petal 2 is one of the best available card options for people with no credit history.
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Rewards
- 1 percent on eligible purchases or up to 1.5 percent cash back on eligible purchases when you make 12 on-time payments
- 2 percent to 10 percent cash back at select merchants
Expert Appraisal: Exceptional
See our expert analysis -
Rates and fees
- Annual Fee: $0
- Regular APR: 18.24% - 32.24% (Variable)
Expert Appraisal: Good
See our expert analysis -
Credit-building features
- Reports activity to all three major credit bureaus
- Manages money through mobile app and tracks your credit score
- Offers potentially high credit limits
Expert Appraisal: Average
See our expert analysis -
Other cardholder perks
- Travel benefits like auto rental collision insurance and roadside dispatch
- No late fee, returned payment fee, or foreign transaction fee
Expert Appraisal: Average
See our expert analysis
Petal 2 pros and cons
Pros
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This card is easily accessible to people building credit since you don’t need a credit score to qualify.
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It has no annual fee, foreign transaction fees, late payment fees, or returned payment fees.
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Unlike most other credit-building cards, the Petal 2 earns rewards.
Cons
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The Petal 2 does not offer balance transfers, so cardholders looking to build their credit while they manage their debt won’t get as much use from this card.
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The complicated rewards structure based on on-time monthly payments might be a bit confusing for credit card newbies.
How the Petal 2 card works
You’ll earn 1 percent cash back on eligible purchases right away, but if you make consecutive on-time payments, you can earn even more cash back: up to 1.25 percent after six on-time payments or up to 1.5 percent after 12 on-time monthly payments. From time to time, you may also earn “Bonus Cash Back Points” on qualifying purchases at an undisclosed higher cash back rate or alternative type of reward.
There are also opportunities to earn 2 to 10 percent cash back at select merchants with the Petal Offers program. Share your location with the Petal card app, and you’ll see nearby local businesses with higher cash back offers. Merchant offers are automatically loaded to the Petal account, so if you spend at a selected merchant, you’ll automatically be eligible for higher cash back offers, if available.
With every Petal 2 credit card purchase, 1 percent of what you spend is automatically deposited into your Cash Back Wallet the following billing cycle. You can redeem the Cash Back Points in your Cash Back Wallet as a statement credit up to the amount of the current balance. If you have more than $20 available to redeem, you can call the issuer to request a transfer to a bank account or send a check.
There is no limit to the amount of Cash Back Points you can earn.
Also, with the Leap program, you can increase your credit line if you pay at least 15% of your monthly statement or your minimum balance, whichever is more, on time for six months. With a higher credit line, you can lower your credit utilization, helping to build up your credit score.
Why you might want Petal 2 Visa
The Petal 2 card can be an excellent alternative to traditional secured credit-building cards if you want to build credit without any credit (or if you aren’t eligible) and prefer not to put down a deposit. Like most secured cards, you don’t need previous credit history to qualify for the Petal 2.
Consider these benefits as you select the right credit-building card for you.
Rewards rate: Versatile ways to earn cash back
If you want a card that offers many ways to earn rewards, then the Petal 2 Visa delivers. While the value rate might be on the lower end compared to other cash back cards, your cash back is not limited to specific rewards categories. So you can earn immediately on all eligible purchases bought with this card. That includes spending on gas, restaurants, groceries, local transit, among other items.
Additionally, the card rewards steady and consistent payment with its cash back tiers, but even without the tiers, you could earn up to 10 percent back with select merchants through their Petal Offers program. With no limit to how much you can earn, you could easily collect and redeem a significant amount of rewards.
Rates and fees: Low-end APR and $0 annual fee can help with payments
The “no-fee” Petal 2 credit card has no annual fees, foreign transaction fees, late fees or returned payment fees, and the low end of the card's APR of 18.24% - 32.24% (Variable) is below the current average interest rate. No fees and a potentially low APR can be crucial factors as you work toward building a healthy credit score.
However, you can’t make balance transfers or cash advances at the moment, and its broad APR range, determined by your creditworthiness, means you may see interest rates well above average.
Credit-building features: Track progress and potential to increase credit line
The Petal 2 card reports activity to all three major credit bureaus. As you pay back what you owe on time, you can build up your credit and increase your cash back rewards stockpile. You can also use Petal’s mobile app to manage your money and receive a free credit score to track your progress. Also, with the Leap program, you have the chance to improve your credit limit with consecutive on-time payments.
Credit limits range from $300 to $10,000, which is good news for credit builders. The higher your credit limit, the more room you’ll have to keep your credit utilization low when you make purchases and carry balances on the card. Keeping your credit utilization low may boost your credit score over time. Just keep in mind that your potential credit limit with this card is based on your creditworthiness, and a high limit is not guaranteed.
Why you might want a different cash back card
Welcome offer: Other cards offer both rewards and a sign-up bonus
While this card offers a flexible rewards structure, it's missing a key feature: a sign-up bonus. For that, you'll want to consider the Discover it® Secured Credit Card that not only offers cash back but also automatically matches your total cash back rewards earned at the end of your first year. A matching rewards program for the first year can help ease some financial burden, especially for those just starting out with limited or no credit history.
How the Petal 2 card compares to other cash back credit-building cards
Cards designed for people establishing their credit are often light on perks and rewards, and they typically require a deposit or annual fee. However, there are a few options similar to the Petal 2 where cardholders can earn rewards while building their credit.
Petal® 2 "Cash Back, No Fees" Visa® Credit Card
Annual fee
Intro offer
Rewards rate
Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments. 1% cash back on eligible purchases right away.
Recommended Credit Score
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Annual fee
Intro offer
Intro Offer: Unlimited Cashback Match - only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! There's no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Rewards rate
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Earn unlimited 1% cash back on all other purchases.
Recommended Credit Score
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Annual fee
Intro offer
Rewards rate
Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply. Earn unlimited 1.5% cash back on every purchase, every day.
Recommended Credit Score
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Best cards to pair with the Petal 2 Visa
Remember that it might not be a good idea to apply for other cards at the same time when you’re working on your credit, since applying for too many cards at once may temporarily hurt your credit score. It might be better to use the Petal 2 card to build a credit score first, then look into additional options.
After some time, as your credit improves, you can start looking at cards for good credit, including travel rewards credit cards and cash back cards that offer better cash back rates.
Who is the Petal 2 card right for?
Bankrate’s Take — Is the Petal 2 card worth it?
Many credit-building cards don’t have a rewards structure. The Petal 2, on the other hand, lets you earn cash back and rewards you with a higher cash back rate for making on-time payments (which may be a good incentive to build your credit).
Students may have better options with a student credit-building card, and those with bad credit might find secured credit cards more effective. Depending on the cash back rewards structure that works best for you, you should look into other cash back rewards cards as well though cards with better cash back rewards typically have more fees and require a good to excellent FICO score.
Frequently asked questions
What cardholders think
Petal® 2 "Cash Back, No Fees" Visa® Credit Card
In May 2024, Bankrate collaborated with third-party SliceMR to survey 6160 cardholders nationwide. Bankrate and Slice MR collected, averaged and presented website analytics and cardholder responses to six questions on a 5-point scale. Responses are based on individual cardholder’s product details, and therefore cannot be verified for accuracy. Users received an incentive for their feedback. User ratings are unedited and have not been reviewed or approved by credit card issuers, nor do these ratings reflect Bankrate’s own reviews of these cards.
Community Reviews
* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.
Editorial Disclosure: Opinions expressed here are the author's alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.
