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Petal® 2 “Cash Back, No Fees” Visa® Credit Card review: Build your credit, skip the fees

Looking for a low-cost way to build your credit? This card can get you there and you’ll earn cash back in the process.

 /  9 min
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At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for and how we rate our cards . The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

Snapshot

5.0

Bankrate rating
Info
Rating: 5 stars out of 5

Bottom line

Despite the Petal® 2 Visa®’s limited cardholder benefits, it stands out as an excellent tool for credit builders. With no annual fee and a solid cash back rate, this starter card has a lot to offer.

BEST FOR CREDIT-BUILDING WITH CASH BACK
Image of Petal® 2 "Cash Back, No Fees" Visa® Credit Card

Petal® 2 "Cash Back, No Fees" Visa® Credit Card

  • Cost of membership
    Rating: 5 stars out of 5
    5 / 5
    Ease of building credit
    Rating: 3 stars out of 5
    3 / 5
    APR
    Rating: 4 stars out of 5
    4 / 5
    Features
    Rating: 3.8 stars out of 5
    3.8 / 5
No Credit History
Info
Recommended Credit

N/A

Intro offer

Info

1% - 1.5%

Rewards rate

Info

Annual fee

Regular APR

Petal® 2 “Cash Back, No Fees” Visa® Credit Card: A credit-building tool with earning potential

The Petal® 2 “Cash Back, No Fees” Visa® Credit Card issued by WebBank is one of the best no annual fee cards, especially if you’re focused on building credit. Though its perks are few, this card has a few features that stand out among cards geared toward those with limited or no credit histories.

Cardholders earn a respectable cash back rate on eligible purchases and the issuer rewards positive credit behaviors with elevated cash back earnings. However, the rewards structure might be complicated for credit newbies, and there are other card options for credit beginners with welcome bonuses. Still, the Petal 2 is one of the best available card options for people with no credit history.

  • Credit Card Cash Back

    Rewards

    • 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

    Expert Appraisal: Exceptional
    See our expert analysis

  • Credit Card Search

    Rates and fees

    • Annual Fee: $0
    • Regular APR: 18.24% - 32.24% (Variable)

    Expert Appraisal: Good
    See our expert analysis

  • Credit Fair

    Credit-building features

    • Reports activity to all three major credit bureaus
    • Manages money through mobile app and tracks your credit score
    • Offers potentially high credit limits

    Expert Appraisal: Average
    See our expert analysis

  • Congrats
    Other cardholder perks
    • Travel benefits like auto rental collision insurance and roadside dispatch 
    • No late fee, returned payment fee, or foreign transaction fee

    Expert Appraisal: Average
    See our expert analysis

Petal 2 pros and cons

Pros

  • Checkmark

    This card is easily accessible to people building credit since you don’t need a credit score to qualify.

  • Checkmark

    It has no annual fee, foreign transaction fees, late payment fees, or returned payment fees.

  • Checkmark

    Unlike most other credit-building cards, the Petal 2 earns rewards.

Cons

  • The Petal 2 does not offer balance transfers, so cardholders looking to build their credit while they manage their debt won’t get as much use from this card.

  • The complicated rewards structure based on on-time monthly payments might be a bit confusing for credit card newbies.

How the Petal 2 card works

You’ll earn 1 percent cash back on eligible purchases right away, but if you make consecutive on-time payments, you can earn even more cash back: up to 1.25 percent after six on-time payments or up to 1.5 percent after 12 on-time monthly payments. From time to time, you may also earn “Bonus Cash Back Points” on qualifying purchases at an undisclosed higher cash back rate or alternative type of reward.

There are also opportunities to earn 2 to 10 percent cash back at select merchants with the Petal Offers program. Share your location with the Petal card app, and you’ll see nearby local businesses with 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 available.

With every Petal 2 credit card purchase, 1 percent of what you spend is automatically deposited into your Cash Back Wallet the following billing cycle. You can redeem the Cash Back Points 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 call the issuer to request a transfer to a bank account or send a check.

There is no limit to the amount of Cash Back Points you can earn.

Also, with the Leap program, you can increase your credit line if you pay at least 15% of your monthly statement or your minimum balance, whichever is more, on time for six months. With a higher credit line, you can lower your credit utilization, helping to build up your credit score.

Why you might want Petal 2 Visa

The Petal 2 card can be an excellent alternative to traditional secured credit-building cards if you want to build credit without any credit (or if you aren’t eligible) and prefer not to put down a deposit. Like most secured cards, you don’t need previous credit history to qualify for the Petal 2. 

Consider these benefits as you select the right credit-building card for you.

Rewards rate: Versatile ways to earn cash back

If you want a card that offers many ways to earn rewards, then the Petal 2 Visa delivers. While the value rate might be on the lower end compared to other cash back cards, your cash back is not limited to specific rewards categories. So you can earn immediately on all eligible purchases bought with this card. That includes spending on gas, restaurants, groceries, local transit, among other items. 

Additionally, the card rewards steady and consistent payment with its cash back tiers, but even without the tiers, you could earn up to 10 percent back with select merchants through their Petal Offers program. With no limit to how much you can earn, you could easily collect and redeem a significant amount of rewards.

Rates and fees: Low-end APR and $0 annual fee can help with payments

The “no-fee” Petal 2 credit card has no annual fees, foreign transaction fees, late fees or returned payment fees, and the low end of the card's APR of 18.24% - 32.24% (Variable) is below the current average interest rate. No fees and a potentially low APR can be crucial factors as you work toward building a healthy credit score. 

However, you can’t make balance transfers or cash advances at the moment, and its broad APR range, determined by your creditworthiness, means you may see interest rates well above average.

Credit-building features: Track progress and potential to increase credit line

The Petal 2 card reports activity to all three major credit bureaus. As you pay back what you owe on time, you can build up your credit and increase your cash back rewards stockpile. You can also use Petal’s mobile app to manage your money and receive a free credit score to track your progress. Also, with the Leap program, you have the chance to improve your credit limit with consecutive on-time payments.

Credit limits range from $300 to $10,000, which is good news for credit builders. The higher your credit limit, the more room you’ll have to keep your credit utilization low when you make purchases and carry balances on the card. Keeping your credit utilization low may boost your credit score over time. Just keep in mind that your potential credit limit with this card is based on your creditworthiness, and a high limit is not guaranteed.

Why you might want a different cash back card

While the Petal 2 can be a great choice for people with fair credit who want to increase their scores, be aware of its drawbacks before applying.

Welcome offer: Other cards offer both rewards and a sign-up bonus

While this card offers a flexible rewards structure, it's missing a key feature: a sign-up bonus. For that, you'll want to consider the Discover it® Secured Credit Card that not only offers cash back but also automatically matches your total cash back rewards earned at the end of your first year. A matching rewards program for the first year can help ease some financial burden, especially for those just starting out with limited or no credit history. 

How the Petal 2 card compares to other cash back credit-building cards

Cards designed for people establishing their credit are often light on perks and rewards, and they typically require a deposit or annual fee. However, there are a few options similar to the Petal 2 where cardholders can earn rewards while building their credit. 

Image of Petal® 2 "Cash Back, No Fees" Visa® Credit Card

Petal® 2 "Cash Back, No Fees" Visa® Credit Card

Annual fee

$0

Intro offer

N/A

Rewards rate

1% - 1.5%
Info

Recommended Credit Score

No Credit History
Info
Image of Discover it® Secured Credit Card
Bankrate Score
See Rates & Fees , Terms Apply
Apply now Lock
on Discover's secure site

Annual fee

$0

Intro offer

Cashback Match™
Info

Rewards rate

1% - 2%
Info

Recommended Credit Score

No Credit History
Info
Image of Capital One QuicksilverOne Cash Rewards Credit Card
Bankrate Score
See Rates & Fees , Terms Apply
Apply now Lock
on Capital One's secure site

Annual fee

$39

Intro offer

N/A

Rewards rate

1.5% - 5%
Info

Recommended Credit Score

Fair to Good (580 – 740)
Info

Best cards to pair with the Petal 2 Visa

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 temporarily hurt your credit score. It might be better 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 at cards for good credit, including travel rewards credit cards and cash back cards that offer better cash back rates.

Who is the Petal 2 card right for?

Bankrate’s Take — Is the Petal 2 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, and those with bad credit might find secured credit cards more effective. Depending on the cash back rewards structure that works best for you, you should look into other cash back rewards cards as well though cards with better cash back rewards typically have more fees and require a good to excellent FICO score.

Frequently asked questions

* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.

Editorial Disclosure: Opinions expressed here are the author's alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.