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The Petal® 2 “Cash Back, No Fees” Visa® Credit Card can be a smart choice if you’re looking for a rewards credit card and hoping to minimize fees. Not only does this card come free of an annual fee, but there are no foreign transaction fees or late or returned payment fees to boot.
You can even get preapproved and gauge your odds of approval for this card without a hard inquiry on your credit report — and if your credit isn’t quite good enough to qualify, you can find out if you’re eligible for the Petal® 1 “No Annual Fee” Visa® Credit Card instead.
But, when is the Petal 2 Visa Credit Card worth it? And when would you potentially be better off with a different card? That really depends on what your goals are, how you plan to use your card and whether or not you could qualify for the best rewards credit cards on the market today.
When is the Petal 2 Visa Card worth it?
One benefit of the Petal 2 Visa is that it’s easier to qualify for than other rewards credit cards. In fact, you may not even need a credit score to qualify since the card’s issuer (WebBank) may be willing to approve you based on your banking history alone.
With this in mind, the Petal 2 Visa can be an extremely good option for building credit with a credit card since you get the chance to earn cash back on everything you buy. And if you need to build credit fast, you could get this card and start using it to your benefit right away.
Speaking of that, this card starts you off earning 1 percent cash back on all purchases, but you can graduate to earning 1.25 percent cash back with six months of on-time payments, then 1.5 percent back with 12 months of on-time payments. You can also earn 2 percent to 10 percent cash back at select merchants when you pay with your card through its Petal Offers program, which could help you boost your average rewards rate over time.
The Petal 2 Visa can also be worth it if you’re worried about late payment or returned payment fees. This card doesn’t charge them, so you have a little bit of breathing room if you need a few more days to get your payment together.
When is the Petal 2 Visa Card not worth it?
While getting the chance to earn rewards while you build credit is a major plus, you should know that many other rewards cards offer a higher return for your spending. This is even true for people with a fair credit score (any FICO score from 580 to 669) since several cards for fair credit offer a higher cash back rate right off the bat. An example is the Capital One QuicksilverOne Cash Rewards Credit Card, which offers 1.5 percent cash back on everything you buy.
If you have a good credit score, or any FICO score over 670, the Petal 2 Visa is unlikely to be the best credit card you can qualify for. In fact, good or excellent credit is typically enough to qualify for the best cash back credit cards on the market today, or even some of the best travel credit cards.
One other downside of this card is its very obvious lack of perks (minus a few basic Visa credit card perks). Where many other rewards credit cards offer benefits like travel insurance, purchase protection or extended warranties, the Petal 2 Visa offers almost nothing in that realm.
One final reason to skip the Petal 2 Visa is if you need access to the highest credit limit you can possibly get. The minimum line of credit for this card starts at $300, so it’s worth looking at other options if you need more available credit than that.
Should you get the Petal 2 Visa Card?
At the end of the day, the Petal 2 Visa is best for people with fair credit, as well as those who want to try to get approved for a credit card based on their banking history. The fact you get to earn cash back on every purchase is a major reason to sign up, and so is this card’s lack of fees.
Before you apply, you should decide whether this card could help you meet your goals. If so, you can apply online and find out if you’re preapproved right away.
The bottom line
Still can’t decide on the Petal 2 Visa? Make sure you read over our Petal 2 “Cash Back, No Fees” Visa Credit Card review as well as our Visa benefits guide.
In the meantime, it never hurts to compare other credit cards for bad credit or fair credit, including secured credit cards and student cards (if you happen to be in school). By comparing all options that are geared to your credit rating, you’re bound to find the right fit.