Petal® 2 “Cash Back, No Fees” Visa® Credit Card review

Bankrate Staff  in  Student How we rate our cards  |  Advertiser Disclosure
WebBank Image

Recommended Credit Score

No Credit History

A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.

Apply Now On WebBank's secure website

Best for credit-building with cash back

Annual Fee:
$0
Purchase Intro APR:
N/A
Regular APR:
12.99% - 26.99% (Variable)
Terms and Restrictions Apply

Bankrate Rating

Best for credit-building cash back rewards

  • Rewards rate: Earn 1 percent cash back automatically on purchases or up to 1.5 percent cash back on transactions when you make 12 on-time payments. Earn 2 percent to 10 percent cash back at select merchants.
  • Welcome offer: N/A
  • Annual fee: $0
  • Purchase intro APR: N/A
  • Balance transfer intro APR: N/A
  • Regular APR: 12.99 percent–26.99 percent variable APR

The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is a no-fee credit card that helps you build a credit score with responsible use. The Petal 2 card has a credit limit of $500 to $10,000 based on creditworthiness and offers cash back rewards on transactions. You earn 1 percent cash back immediately with purchases and up to 1.5 percent cash back total when you pay back your purchases (after making 12 on-time monthly payments). You can also get 2 to 10 percent bonus cash back at select merchants. If you’re looking for a credit card to build up credit, Petal 2 can be a good option since it offers cash back rewards.

Petal 2 Visa Credit Card current welcome offer

The Petal 2 card currently doesn’t have a welcome bonus offer.

Cash back

All transactions are eligible to earn cash back with the Petal 2 credit card. Cardholders can earn 1 percent cash back automatically or up to 1.5 percent when making 12 payments on time. Additionally, the Petal 2 card can earn you up to 2 to 10 percent cash back at select merchants.

Earning cash back

You’ll earn 1 percent cash back on purchases right away but if you make 12 on-time payments, you can earn even more cash back: 1.25 percent after six on-time payments or 1.5 percent after 12 on-time monthly payments.

There are also opportunities to earn 2 to 10 percent cash back at select merchants. Share your location with the Petal card app, and you’ll see nearby local businesses that have higher cash back offers. Merchant offers are automatically loaded to the Petal account, so if you spend at a selected merchant, you’ll automatically be eligible for higher cash back offers if they’re available.

Redeeming cash back

With every purchase with the Petal 2 credit card, 1 percent of what you spend is automatically deposited into your Cash Back Wallet the following billing cycle. You can redeem the cash back in your Cash Back Wallet as a statement credit up to the amount of the current balance. If you have more than $20 available to redeem, you can also call the Petal card company to request an ACH transfer to a bank account or to request a check.

Petal 2 Visa Credit Card: Benefits

The Petal 2 card is a good option among the top student credit cards and best credit cards for no credit history. Consider these benefits as you’re making a credit-building card selection.

Cash back benefits

Maximize the amount of cash back you earn by looking at merchant deals that offer 2 to 10 percent cash back rewards.

Travel benefits

There is no need to worry about foreign transaction fees when you use the Petal 2 credit card.

Credit-building benefits

The Petal 2 card usage is reported to all three major credit bureaus. As you pay back what you owe on time, you can build up your credit and increase the number of cash back rewards you can get.

Rates and fees

The “no-fee” Petal 2 credit card has no annual fees, no foreign transaction fees, no late fees and no returned payment fees. The variable purchase APR of 12.99 to 26.99 percent is based on creditworthiness.

How the Petal 2 Visa Credit Card compares to other cash back credit-building cards

Card Name Rewards rate Welcome Offer/Bonus Purchase APR Annual fee
Petal 2 “Cash Back, No Fees” Visa® Credit Card Earn 1 percent cash back automatically, earn 1.25 percent cash back after making 6 months of on-time payments, earn 1.5 percent cash back after making 12 months of on-time payments N/A 12.99 percent-26.99 percent variable APR $0
Discover it® Secured Earn 2 percent cash back at gas stations and restaurants on up to $1,000 in transactions each quarter; earn 1 percent unlimited cash back on all other purchases Get an automatic cash back match on all cash back earned at the end of the first year 22.99 percent variable APR $0
Discover It® Student Cash Back Enroll every quarter to earn 5 percent cash back on up to $1,500 in purchases each quarter made in various rotating categories, then 1 percent Get a Cashback Match welcome offer at the end of your first year; Earn a $20 statement credit each school year the cardholder’s GPA is 3.0 or higher, up to 5 years 0 percent intro APR for 6 months on purchases; then, 12.99 percent-21.99 percent variable APR $0

If you’re looking for a cash back, credit-building credit card, consider a couple of other options that may be a better fit. One is the Discover it® Secured Credit Card, where you can earn 2 percent cash back at restaurants and gas stations on up to $1,000 in transactions each quarter (then 1%) and unlimited 1 percent cash back on all other purchases. Your refundable security deposit amount becomes your line of credit, and the card has no annual fee and no foreign transaction fees. Any cash back rewards you earn during the first year will be automatically matched at the end of the year.

For students who are starting out building credit, the Discover it® Student Cash Back card has cash earning options and ranks highly in student credit card reviews. Cardholders can earn 5 percent cash back on rotating categories when activated each quarter (up to $1,500 in purchases per quarter, then 1 percent), in categories like Amazon.com and grocery stores. This card also provides a cash back match for the first year at the end of the first year, as well as a $20 statement credit each school year when you earn a 3.0 or higher GPA for up to five years. The card has no annual fee, no foreign transaction fees and a 0 percent introductory APR period for 6 months on purchases (then, a 12.99 percent to 21.99 percent variable APR applies).

Best cards to pair the Petal 2 Visa Credit Card with

Remember that it might not be a good idea to apply for other cards at the same time when you’re working on your credit, since applying for too many cards at once may negatively impact your scores. It might be a better idea to use the Petal 2 card to build a credit score first, then look into additional options. After some time, as your credit improves, you can start looking into cards for good credit, including travel rewards credit cards and cash back credit cards that offer better cash back rates.

Bankrate’s take—Is the Petal 2 Visa Credit Card worth it?

Many credit-building cards don’t have a rewards structure. The Petal 2, on the other hand, lets you earn cash back and rewards you with a higher cash back rate for making on-time payments (which may be a good incentive to build your credit).

Students may have better options with a student credit-building card. Depending on the cash back rewards structure that works best for you, you may want to look into other cash back rewards cards, as well.