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Petal 1 vs. Petal 2 Visa Credit Card

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Although the Petal® 1 “No Annual Fee” Visa® Credit Card and Petal® 2 “Cash Back, No Fees” Visa® Credit Card offer similar benefits, they are designed for two different types of consumers. The Petal 1 card is for consumers with low to fair credit who may not qualify for traditional unsecured credit cards, while the Petal 2 card is for those with fair to good credit who are looking to earn rewards while boosting their score.

Main details

Cards Petal 1 “No Annual Fee” Visa Credit Card Petal 2 “Cash Back, No Fees” Visa Credit Card
Rewards rate N/A, but 2% to 10% cash back at select merchants via Petal Offers Up to 1.5% cash back on eligible purchases when you make 12 on-time payments; 2% to 10% cash back at select merchants via Petal Offers
Welcome bonus N/A N/A
Annual fee $0 $0
Regular APR 22.24% to 31.74% (variable) 15.24% to 29.24% (variable)

Petal 1 vs. Petal 2 Visa Credit Card highlights

Need some help deciding between the Petal 1 Visa Credit Card and the Petal 2 Visa Credit Card? Here we’ll cover which card wins when it comes to welcome bonuses, rewards and more.

Welcome bonus winner: Tie

Neither the Petal 1 nor the Petal 2 offers a welcome bonus. If you’re a consumer with good credit, you may want to look for a different rewards card that offers a welcome bonus for new cardholders. That said, if your credit score is a work-in-progress or if a welcome bonus isn’t an important feature for you, both Petal cards are good options.

Rewards rate winner: Petal 2

The Petal 2 card is the winner when it comes to rewards. Although both cards earn 2 percent to 10 percent cash back on select merchant purchases via Petal Offers, the Petal 2 card also earns at least 1 percent cash back on eligible purchases. However, you could earn up to 1.5 percent cash back after 12 months of on-time payments.

Annual fee winner: Tie

Neither card charges an annual fee, so they’re both are affordable choices for consumers. Either could also be a good choice for students who are looking to open a credit card for the first time in order to build credit.

Foreign transaction fee winner: Tie

Neither card charges a foreign transaction fee, making them both good options for traveling or studying abroad.

Credit-building benefits winner: Petal 1

Both the Petal 1 and Petal 2 offer tools and benefits designed to help consumers build credit. However, since Petal 1 is targeted toward consumers with little to no credit history who may not otherwise qualify for an unsecured card, it could potentially offer a credit score boost. Both cards also report to all three major credit bureaus and give consumers the opportunity for a credit line increase in as little as six months.

Which card earns more?

In most cases, Petal 2 cardholders will earn more cash back than Petal 1 cardholders since the the Petal 2 earns 1 percent to 1.5 percent cash back on all eligible purchases, regardless of where you shop. However, both cards earn 2 percent to 10 percent cash back at select merchants via Petal Offers.

Petal 1 vs. Petal 2 spending example

Let’s say you spend $100 with a merchant that has partnered with Petal Offers and $1,000 at other retailers. Petal 1 cardholders could earn 2 percent to 10 percent back from that merchant offer for a total of $2 to $10 in cash back. Petal 2 cardholders could earn that same $2 to $10 in cash back from the merchant offer, plus $10 to $15 in cash back on that $1,000 spent at other retailers. That means Petal 2 cardholders could earn a maximum of $25 in cash back on all of these purchases.

Why should you get the Petal 1 Visa Credit Card?

The Petal 1 Visa Credit Card doesn’t earn as much cash back as the Petal 2 card, but it’s a good option for consumers who may not qualify for other unsecured cards.

Additional benefits

This card comes with benefits such as no annual fee, no foreign transaction fees and 2 percent to 10 percent cash back at select merchants. While the card charges a returned payment fee of $29 and a late payment fee of up to $40, it allows consumers to turn on autopay to avoid penalty fees. You may even be able to increase your credit limit after six months of responsible credit behavior if you meet certain requirements.

Redemption options

Cash back can be redeemed in the form of a statement credit, check or ACH transfer.

Recommended credit score

This card is designed for consumers with little to no credit history. Petal takes into account your banking history as well as your credit score, which can help consumers with good financial habits to qualify for more credit and better rates.

Why should you get the Petal 2 Visa Credit Card?

The Petal 2 card is a great option for consumers with fair to good credit who are looking to earn rewards while building their score.

Additional benefits

One of the key benefits of the Petal 2 card is that it earns up to 1.5 percent cash back on all eligible purchases, plus an additional 2 percent to 10 percent cash back on purchases from select merchants. Some other benefits include no annual fee, no foreign transaction fees, no late or returned payment fees, budgeting tools and compatibility with Apple Pay and Google Pay.

Redemption options

Like the Petal 1, cash back can be redeemed in the form of a statement credit, check or ACH transfer.

Recommended credit score

The Petal 2 card is recommended for consumers with little or no credit history, but consumers with fair to good credit may have the best odds of approval. Petal will take into account your banking history (in addition to your credit score) to determine your creditworthiness.

The bottom line

Both the Petal 1 Visa Credit Card and the Petal 2 Visa Credit Card are good options for consumers who don’t have a long credit history. The Petal 1 comes with some basic perks like cash back at select merchants, no annual fee and no foreign transaction fees. The Petal 2 features cash back on all purchases, no late fees and a lower variable APR range. Consumers who qualify for the Petal 2 card should take advantage of the additional benefits offered, but for those who don’t qualify, the Petal 1 is still a good option.

Written by
Margaret Wack
Personal Finance Expert Contributor
Margaret has written for Money Under 30, MoneyGeek, The Simple Dollar, CreditCards.com, Interest.com and Fiscal Tiger, among other publications. She writes about subjects including saving, credit, insurance, investing and other financial topics.
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