The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is a cash back credit card designed to help borrowers build credit. This card comes with a variety of attractive benefits, including no annual fee or foreign transaction fees, no late fees, automatic credit bureau reporting and more. We’ll cover the top benefits that come with this credit-building card, along with how to maximize your benefits as a cardholder.

As a reminder: Details of the Petal 2 Visa Credit Card

  • Rewards rate: 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
  • Welcome bonus: None
  • Annual fee: $0
  • Regular APR: 17.99 percent to 31.99 percent variable

Petal 2 Visa Credit Card benefits

The Petal 2 “Cash Back, No Fees” Visa Credit Card comes with a host of benefits, including:

Ongoing cash back rewards

One of the most attractive benefits of this card is the fact that it earns cash back on all purchases. This means that no matter what you’re spending money on, whether it’s groceries, routine bills or fun splurges, you’ll earn cash back on each purchase. Right off the bat, you’ll earn 1 percent cash back when you make a purchase. After six on-time monthly payments, you’ll earn 1.25 percent cash back. And after 12 on-time monthly payments, you’ll earn up to 1.5 percent cash back.

Additional cash back at select merchants

Further, the Petal 2 Visa Credit Card also earns 2 percent to 10 percent additional cash back at selected merchants through Petal Offers. Merchant offers are automatically loaded to your Petal account, so you’ll earn cash back as soon as you make a qualifying purchase.

No annual fee

Unlike many types of rewards credit cards, the Petal 2 charges no annual fee. This means that it’s a good fit for a wide range of borrowers, no matter how much (or little) you plan to spend using the card.

No foreign transaction fees

The Petal 2 card doesn’t charge any foreign transaction fees, which makes it a great fit for cardholders who frequently travel internationally. Whether you have family who lives in another country, just booked a big trip or plan on studying abroad as a student, you can use the Petal 2 Visa Credit Card outside of the United States without worrying about incurring additional charges.

No late or returned payment fees

This card also doesn’t charge late fees or returned payment fees, making it a flexible, forgiving option if you forget to make a payment on time one month.

Reporting to all 3 major credit bureaus

The Petal 2 is designed to help borrowers build good credit, and it reports to all three major credit bureaus. While this is a customary perk for most credit cards, it’s still nice to know that a history of responsible borrowing using this card can help boost your credit score.

Budgeting tools

The card comes with budgeting tools that can help borrowers to set budgets and control spending. This can make it easier to visualize where your money is going and how much you have left — and can help to cultivate responsible spending habits in the process.

Freeze your card at any time

If your card is lost or stolen, or if you spot a suspicious transaction, you can freeze your Petal 2 Visa Credit Card at any time. Petal 2 data is also encrypted for extra security.

Option to get preapproved

Petal gives borrowers the option to get preapproved for the card via its website before officially applying. This means that you can see your card approval odds without affecting your credit score. While preapproval isn’t a guarantee that your application will be accepted, it’s a solid indicator.

Flexible credit limits

The card has a minimum credit limit of $300 and a maximum credit limit of $10,000. Petal’s Leap program allows customers to be considered for a credit limit increase after they meet certain requirements, including paying the greater of your minimum payment or 15 percent of your monthly statement balance for six consecutive billing cycles — as well as keeping your VantageScore from dropping 25 points or more during six consecutive billing cycles.

Connect to Apple Pay and Google Pay

The Petal 2 Visa can be connected to Apple Pay and Google Pay on your phone so that you can quickly and easily make purchases without taking out your physical wallet.

Visa credit card benefits

In addition to the benefits offered through Petal, this card also comes with a whole host of benefits associated with Visa credit cards. These include benefits like roadside assistance, emergency card replacement, fraudulent purchase protection and more.

Maximizing the Petal 2 Visa Credit Card

The Petal 2 Visa Credit Card may not have the perks associated with some more premium rewards credit cards, but it’s a great card for students, borrowers with average credit and those just starting to build credit in general.

In order to make the most of your Petal 2 Visa Credit Card, you should be sure to pay off the balance in full each month in order to avoid accumulating interest. It’s also a good idea to regularly review cash back deals from participating merchants in order to see which deals you may qualify for. Further, when possible, you should try to keep your credit utilization ratio for this card under 30 percent in order to maintain or improve your credit score.

The bottom line

With no annual fee and a competitive, flat cash back rate, the Petal 2 is overall a great choice for people who are new to the world of credit cards. It’s especially well-suited to borrowers that have a short (or no) credit history and are looking for a starter credit card that earns rewards. Like other flat-rate cash back cards, it may not be the best for borrowers who have a lot of spending in a particular category, like groceries or gas.

Before you make the decision to apply, consider reading through our Petal 2 “Cash Back, No Fees” Visa Credit Card review for a more in-depth look at this card’s offerings — as well as our list of the best starter credit cards of 2023, for good measure.