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- The Petal® 1 "No Annual Fee" Visa® Credit Card and Petal® 2 "Cash Back, No Fees" Visa® Credit Card are unsecured cards with no annual fee designed to help you access and build credit.
- Petal considers more than your credit score for approval, analyzing your banking history as well to decide eligibility.
- Both cards come with cash back at select merchants through Petal Offers, but the Petal 2 edges out the Petal 1 with 1 percent cash back on eligible purchases for those who qualify.
- If you have already have good credit, you may want to look for another card that comes with stronger rewards and a welcome bonus.
The Petal® 1 “No Annual Fee” Visa® Credit Card and Petal® 2 “Cash Back, No Fees” Visa® Credit Card offer similar benefits, though they’re designed for two different types of consumers. The Petal 1 card is for people with low to fair credit who may not qualify for a traditional unsecured credit card, while the Petal 2 card is for those with fair to good credit who are looking to earn rewards while boosting their score.
|Cards||Petal 1 “No Annual Fee” Visa Credit Card||Petal 2 “Cash Back, No Fees” Visa Credit Card|
|Rewards rate||N/A — but you can earn 2% to 10% cash back at select merchants through 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 though Petal Offers|
Petal 1 vs. Petal 2 Visa Credit Card highlights
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, either Petal card is a good option.
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 through 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 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 with the goal of building credit.
Foreign transaction fee winner: Tie
Neither card charges a foreign transaction fee, which means you can use either for traveling or studying abroad.
Which card earns more?
Petal 2 cardholders will earn more cash back than Petal 1 cardholders in most cases, because 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 through Petal Offers.
Petal 1 vs. Petal 2 spending example
Let’s say you spend $100 with a merchant that’s 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?
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 spending and payments if you meet certain requirements.
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 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 or rebuilding their credit score.
Among 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.
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 credit to good credit may have the best odds of approval. In addition to your credit score, Petal takes into account your banking history to determine your creditworthiness when you apply.
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 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 decent choice.
And if you’re still not sure, see our picks for the best unsecured cards for poor credit to find a better fit with your credit history, budget and financial goals.