Petal® 1 “No Annual Fee” Visa® Credit Card review

Best entry-level card for local cash back offers

• Rewards rate: N/A (select cash back with Petal Perks program)
• Welcome offer: N/A
• Annual fee: $0
• Purchase intro APR: N/A
• Balance transfer intro APR: N/A
• Regular APR: 19.99 percent to 29.49 percent variable

If you’re brand-new to the world of credit but secured credit cards carry too many upfront costs, the Petal® 1 “No Annual Fee” Visa® Credit Card can help reduce these barriers. Instead of just looking at your credit score, the Petal 1 Card evaluates other financial indicators like your income and bill payment behavior.

The Petal 1 Card’s easy-to-use experience could make it a solid unsecured alternative until you build your credit to the next level. Still, you may be able to find more consistent rewards and better benefits with other starter cards—even with no credit history—if you’re willing to settle for certain secured cards or if you qualify for a student card.

Outside student cards, the Petal 1 card could be the next best low-cost unsecured option if your financial history can’t bump you up to the Petal® 2 “Cash Back, No Fees” Visa® Credit Card.

Current sign-up bonus

The Petal 1 card doesn’t offer a sign-up bonus, which is relatively common among credit cards for no credit history.

Cash back

The Petal 1 credit card doesn’t have its own consistent cash back program, but the Petal Perks program may occasionally earn you cash back at select merchants.

Earning cash back

The Petal Perks program works like Amex Offers and other card-linked offer programs, except you’re automatically enrolled into each Petal Perks offer without the need to activate. You can earn anywhere from 2 percent to 10 percent rewards on eligible purchases at participating retailers in the form of “cash back points.”

Earning rewards this way can be hit-or-miss since each offer depends on its own terms and time frame. If rewards are your game, you should switch to a more effective cash back card once you’ve built credit with your card.

Redeeming cash back

Your “cash back points” can be redeemed for a statement credit at any amount or a check or direct deposit starting at $20.

How much are points worth?

These points work like cash back since they’re earned as a percentage of a dollar. Therefore, each cash back point is worth 1 cent.

Benefits

Other than the Petal Perks program, the Petal 1 Card doesn’t carry any additional benefits outside the perks the Petal 1 Card offers as a traditional Visa card, including:

• Zero liability fraud protection
• Cardholder inquiry services
• Pay-per-use 24/7 roadside dispatch assistance
• Lost/stolen card reporting
• Emergency card replacement and cash disbursement
• Visa Local Offers with Uber

However, Visa benefits can vary from card to card, so contact your issuer for the full benefits list.

Rates and fees

The Petal 1 Card is an overall low-fee card compared to other credit cards for those with no credit history. This credit card carries no annual fee, no foreign transaction fees and respectable interest rates (19.99 percent to 29.49 percent variable).

Unfortunately, the APR isn’t as competitive as the Petal 2 Card’s (12.99 percent to 26.99 percent variable), and the Petal 2 Card doesn’t charge returned or late payment fees.

On the bright side, the Petal 1 Card provides a $500 to $5,000 initial credit limit, which is amazing for an unsecured card in its class. Obtaining a credit limit that high off the bat can give you a low credit utilization ratio and boost your credit score if you keep a low balance.

How the Petal 1 Visa card compares to other cards for no credit history

The Petal 2 Card and its rewards blow the Petal 1 Card out of the water, but the Petal 1 Card still sets itself apart from the competition by streamlining the fine print and costs associated with a starter card—allowing cardholders to focus on learning the credit-building ropes.

If you’re looking for cash back on par with the Petal 2 Card’s up to 1.5 percent rate, you’ll need to either be a student or not mind a deposit for a secured card.

If you’ve reached at least fair credit, the Capital One QuicksilverOne Cash Rewards Credit Card is a worthwhile rival with its unlimited 1.5 percent cash back on all purchases and portfolio of Capital One benefits in exchange for a $39 annual fee.

Bankrate’s Take—Is the Petal One Visa card worth it?

The Petal 1 “No Annual Fee” Visa Credit Card is a decent low-cost choice if you’re dead set on an unsecured card and your credit score doesn’t reflect the best financial habits yet. However, the Petal 2 Card is the superior no annual fee card if you’re eligible.

You also have a few better options if you qualify for a student credit card or if you can pony up a deposit for a secured card.

Pros

• No annual fee and no foreign transaction fees
• Great rates and fees for an unsecured credit card if you have no credit history
• Initial $500 to $5,000 credit limit

Cons

• No consistent ongoing rewards outside the Petal Perks program
• Higher rates and fees than the cash back-earning Petal 2 Card
• No additional benefits other than the standard Visa features