Petal® 1 “No Annual Fee” Visa® Credit Card
- Intro Offer
-
No current offer
- Annual fee
- $0
- APR
- 25.24% – 34.74% Variable
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
- No Credit History
- Rewards rate
-
2% – 10% cash back 2% – 10% cash back at select merchants
Our take
Many credit-building cards are secured credit cards that require a refundable cash deposit to get started, but the Petal® 1 “No Annual Fee” Visa® Credit Card, issued by WebBank, is an unsecured credit card that doesn’t require any collateral. This is particularly useful for people who don’t want to pay the typical $200 deposit for a secured credit card.
On the downside, the Petal 1 “No Annual Fee” Credit Card comes with a credit limit of $300 to $5,000, which, on the lower end of that range, can be limiting. While a lower credit line reduces your ability to make purchases on the card, that limitation could be helpful for those just starting out and who want to learn how to manage credit responsibly in a lower-stakes environment. And like most credit-building cards, the Petal 1 isn’t the most rewarding.
It does have a sky-high variable interest rate of 25.24% to 34.74%, which can make carrying a balance very costly.
If you can’t qualify for the Petal 1 “No Annual Fee” card, Petal also offers the Petal 1 Rise. It charges a $59 annual fee, but because of that, it’s typically easier to get approved for. It does have a slightly higher APR, so be careful not to carry a balance. Otherwise, it mostly mirrors the card features of the Petal 1 “No Annual Fee” card.
Pros
Build credit without the need for a security deposit
No annual fee or foreign transaction fees
Earn cash back at select merchants (2% to 10%, depending on the offer)
Gauge your approval odds with preapproval -- avoiding a hard credit check
Cons
Higher-than-average APR
Your starting credit limit can be as low as $300
No consistent rewards program
Who this card is best for
- Credit newbies or those with limited credit history: The Petal 1 “No Annual Fee” Credit Card is geared toward people who need to build credit, so it’s typically easier to get approved for than other unsecured cards. You can even get preapproved online without any impact to your credit score.
- People who don’t plan to carry a balance. With this card’s incredibly high interest rate, it will work best for people who plan to only spend what they can pay off right away.
- Anyone who is OK linking their bank account to get a higher credit limit: With a starting credit limit as low as $300, it’s nice to know you may be able to qualify for a higher credit limit if you link your bank account to your card account.
Who this card isn’t so good for
- Those with good credit who can qualify for better cards: If you have fair credit or good credit, you’ll want to consider credit cards with better perks and rewards. You could even look into the Petal® 2 “Cash Back, No Fees” Visa® Credit Card -- a card from the same issuer that offers rewards for more purchases.
- Someone with bad credit or no credit at all: If you can’t get approved for the Petal 1 “No Annual Fee” Credit Card because you have a really low credit score or no credit history at all, you may need to begin your credit-building journey with a secured credit card instead. There’s also the Petal 1 Rise to consider, though that card comes with a $59 annual fee.
A closer look at the Petal 1 ‘No Annual Fee’ Credit Card
Rewards
While the Petal 1 “No Annual Fee” Credit Card doesn’t offer rewards on all your spending, you do get the chance to earn 2% to 10% cash back on purchases made at select merchants. Of course, these rewards will only benefit you if you were planning to spend money with those merchants anyway. We don’t recommend making purchases you don’t need just to maximize a card’s rewards.
Rates and fees
The lack of an annual fee and foreign transaction fee is one of its major benefits. Many other unsecured credit cards for building credit charge annual fees or other hidden fees. Note that the Petal 1 does charge hefty late payment and returned payment fees, so it’s important to always pay your bills on time.
Credit limit
The Petal 1 “No Annual Fee” Credit Card comes with a credit limit range of $300 to $5,000, which is pretty slim on the lower end of the scale but generous on the high end. The card offers a potentially higher credit limit if you are willing to link a bank account.
The Petal Leap program also lets you earn a credit limit increase if you make six consecutive on-time monthly payments of your minimum payment or 15% of your statement balance (whichever is greater) and you avoid letting your VantageScore drop 50 or more points below your set credit score goal.
The Leap program is available to Petal 1 customers who don’t have the maximum credit limit of $5,000 on their card yet.
Cash score
Petal may use a factor called “cash score” alongside your actual credit score to assess your creditworthiness when you apply for the card. You can get a cash score by linking a bank account to your Petal 1 “No Annual Fee” Credit Card account during the application process.
This feature lets Petal see the information in your bank account, such as your recurring income, your debits and deposits and your regular bill payments. Petal may take this information into consideration when evaluating your application, potentially giving you a better chance of being approved even if you have little to no credit history.
Preapproval options
Petal makes it possible for customers to get preapproved and check their approval odds before they move forward with a full application. By getting preapproved, you can see which Petal card you’re likely to be approved for. You may even find you’re approved for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card that offers rewards.
However, preapproval doesn’t mean you’re guaranteed to get the card; it just gives you a good idea about how likely you are to be approved. You’ll still need to fill out a full application and undergo a hard credit check, which typically will temporarily lower your credit score by a few points.
Alternative cards
Petal 2 ‘Cash Back, No Fees’ Visa Credit Card
If you have fair credit but you want to continue working toward great credit and earn rewards without paying an annual fee, consider the Petal 2 “Cash Back, No Fees” Visa Credit Card, issued by WebBank. It’s typically slightly more difficult to qualify for than the Petal 1, but it earns up to 1.5% cash back on eligible purchases after making 12 consecutive on-time payments, on top of 2% to 10% back at select merchants.
The Petal 2 “Cash Back, No Fees” Visa Credit Card also has no foreign transaction fees, late payment fees or returned payment fees. However, it too has a high APR, so you’ll want to avoid carrying a balance. Like the Petal 1, the credit limit for this card starts at $300, but the Petal 2 has a maximum credit line of $10,000 compared to the Petal 1’s $5,000.
Capital One Quicksilver Secured Cash Rewards Credit Card
If you have a low credit score and need a secured credit card to begin building or rebuilding your credit, consider the Capital One Quicksilver Secured Cash Rewards Credit Card*. This secured credit card requires a minimum cash deposit of $200, although this deposit is refundable when you close or upgrade your account to an unsecured Quicksilver card. There are no annual fees or hidden fees, and this card offers 1.5% cash back on all purchases with no limits.
The Capital One Quicksilver Secured Cash Rewards Credit Card also offers the potential for a credit line increase in as little as six months after showing responsible use.
How Petal® 1 “No Annual Fee” Visa® Credit Card compares to other cards
Petal® 1 “No Annual Fee” Visa® Credit Card
- Intro Offer
-
No current offer
- Annual fee
- $0
- APR
- 25.24% – 34.74% Variable
- Intro Purchase APR
- N/A
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
- No Credit History
- Rewards rate
-
2% – 10% cash back 2% – 10% cash back at select merchants
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
- Intro Offer
-
No current offer
- Annual fee
- $0
- APR
- 18.24% – 32.24% (Variable)
- Intro Purchase APR
- N/A
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
- No Credit History
- Rewards rate
-
1% – 1.5% Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments.; 1% cash back on eligible purchases right away.
- Intro Offer
-
No current offer
- Annual fee
- $0
- APR
- 29.99% (Variable)
- Intro Purchase APR
- N/A
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
- No Credit History
- Rewards rate
-
1.5% – 5% Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you’ll get Capital One’s best prices on thousands of trip options. Terms apply; Earn unlimited 1.5% cash back on every purchase, everywhere
The bottom line
If you have limited credit or fair credit and you’re hoping to improve it with an unsecured credit card, the Petal 1 “No Annual Fee” Credit Card could be the right fit. It has less-strict approval requirements than other cards, and you may be able to increase your approval odds by linking a bank account during the application process in order to generate a “cash score.”
Just remember that this card’s high APR could lead to expensive interest charges if you carry a balance. Our advice? Only use the Petal 1 “No Annual Fee” Credit Card for purchases you can pay off right away. Build your credit until your credit score is in the good range and then apply for a rewards credit card with better perks.
FAQs
The Petal 1 “No Annual Fee” Credit Card doesn’t list a minimum credit score to qualify. However, the card is geared to people with limited credit history or fair credit.
The Petal 1 “No Annual Fee” Credit Card earns 2% to 10% cash back on purchases made at select merchants. However, it doesn’t offer cash back on all eligible purchases like the Petal 2 card does.
The Petal 1 Rise is for people who can’t get approved for the Petal 1 “No Annual Fee” Credit Card. It charges a $59 annual fee, but it’s likely easier to qualify for. The APR on the Petal 1 Rise card is also higher.
*All information about the Capital One Quicksilver Secured Cash Rewards Credit Card has been collected independently by CNET and has not been reviewed by the issuer.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
