Petal Visa® Credit Card review

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Recommended Credit Score

Fair to Good (580 - 740)

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.

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Best initial credit line offering

Annual Fee:
$0
Purchase Intro APR:
N/A
Regular APR:
14.74% - 25.74% (Variable)
Terms and Restrictions Apply

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Perks
Rewards
Variable APR

Petal Visa® Credit Card: Details and benefits

The Petal Visa® Credit Card is a new credit card from the startup tech company of the same name, built on the premise of providing consumers “a better credit experience.” It promises flexible rewards, no fees and assistance in helping establish good credit habits.

The Petal Card’s rewards aren’t outstanding, but they are more competitive than other beginner cards of the same nature. You can earn 1 percent cash back on all purchases as a new cardmember, 1.25 percent after making six on-time payments and 1.5 percent after 12 on-time payments. The card also charges no fees, which covers annual fees, foreign transaction fees and late payment fees, among others.

This is a great starter card for anyone looking to build credit, as it offers money management tools to help you track your spending and keep up with your financial health within an app, and benefits such as no fees can conserve what you have and help you stay on track with your financial goals.

Instead of basing your creditworthiness on just your credit history, Petal asks you to link your banking information during the application process and analyzes your income, spending and other elements for an alternative view of your finances. This information is then used to determine your credit limit, which can range from $500 to $10,000, and your interest rate (variable from 14.74 to 25.74 percent).

Advantages
  • No fees
  • Simple cash back structure that grows with repeated good habits
  • Credit-building tools and obtainable for people with limited credit history
Disadvantages
  • APR can be high if you don’t pay balances in full each month
  • Relatively low rewards earning rate

Is the Petal Visa Credit Card worth it for you?

This card is best suited for anyone looking to build their credit while earning modest cash back rewards on spending.

The alternative approval process and focus on credit-building can be helpful for anyone just starting out with credit, in place of a more limited secured card or student credit card. But the cash-back rewards also make it a simple way to earn a bit of extra cash throughout the year on your regular spending.

If you’re looking for a more robust rewards structure, though, or you already have an excellent credit score and healthy credit history, you may find that a more premium rewards card or travel card is better suited for you.

Get the most value from Petal Visa Credit Card

One of the Petal Card’s main perks is its usefulness for people looking to build credit. While this is more difficult to quantify than rewards, using the Petal Card to improve your creditworthiness is an invaluable asset for your financial future.

How much are the Petal Visa Credit Card rewards worth?

If you spend $1,000 each month on purchases made with the card, you could earn $60 over your first six months of card membership. If you make on-time payments during that period, your rewards would increase to 1.25 percent and you could earn $75 over the next sixth months. That’s a total of $135 in first-year rewards.

After you make 12 on-time payments during that time, you can increase your earnings rate again, to 1.5 percent. If you spend the same amount your second year of card ownership under this new rate, your rewards earnings could bump up to $180 total.

Since this card has a potentially high interest rate (the variable APR ranges from 14.74 to 25.74 percent), you should pay off your balance in full each month to get the most value, so you don’t end up paying more in interest than you’re able to earn in cash back.

How to redeem rewards

Any cash back you earn over a billing cycle will be added to your Cash Back Points balance during the following billing cycle. You may redeem cash back through a statement credit or receive a check, but you need a minimum of $20 before requesting a check. There is no minimum if you redeem cash back for a statement credit. Cash back never expires as long as your account is open and in good standing.