Anyone nurturing a fair credit history would be wise to consider the no-annual-fee Petal 2 credit card. It’s one of the only no-annual-fee cards available to those with so-so credit with the potential to earn up to 1.5% cash back, making it a rare specimen among unsecured credit cards aimed at building credit.
The rewards structure on the Petal 2 card sows the seeds for responsible payment behavior. You’ll start out earning 1% cash back on your spending. After six months of on-time payments, you’ll earn 1.25% cash back. Make on-time payments for another six months for a total of 12 months in a row and your earnings rate jumps to 1.5% cash back. Plus, spending with select merchants via Petal Offers could net you between 2% and 10% back on that purchase.
Every rose has its thorns, and the Petal 2 card is no exception. If you’ve filed for bankruptcy in the past 48 months, you won’t be eligible for a Petal card. And, if you were unaware of that rule and were rejected, Petal states that you aren’t eligible to apply again even though that bankruptcy could be in your rearview mirror by the time you apply again.
If your credit history isn’t damaged, just nonexistent, you’ll have to be willing to let Petal link to your primary bank account to dig up the dirt on your payment history. That’s not an uncommon practice among issuers that grant credit to those just starting to build up a credit score but be aware there are cards that won’t require that kind of access.
At a Glance
- No annual fee, account opening or maintenance fees
- Available to those with limited or no credit history
- Earn 1% cash rewards with the ability to earn up to 1.5%
- APR range: 12.99% – 26.99%
- No foreign transaction fees
- No welcome bonus
- Balance transfers and cash advances not permitted
The Petal 2 Visa Credit Card works on a tiered cash back rewards system that rewards cardholders for making on-time payments.
Cardholders automatically earn 1% cashback on eligible purchases and have the opportunity to earn 1.25% cash back after six on-time, monthly payments and 1.5% cashback after 12 on-time, monthly payments. This is in addition to any purchases you might make that qualify for bonus rewards via Petal Offers.
Other Card Benefits
- Uber Credit Via Visa Offers: Register your Visa through your Uber account and automatically earn Uber credits when you use your card to purchase Visa Offers
- Auto Rental Collision Insurance: Receive coverage for damage or theft to your rental vehicle when you pay with your Petal 2 card and decline the rental company’s collision damage waiver.
- Roadside Dispatch: Get access to roadside dispatch, Visa’s pay-per-use roadside assistance program.
- Lost or Stolen Card Assistance: Visa can help you get an emergency replacement card and arrange for cash to be delivered to you.
The Fine Print
- 12.99% – 26.99% (Variable) APR
- No introductory APR offered
- $500 minimum and can reach up to $10,000
- Annual Fee: $0
- Late Penalty: None
- Foreign Purchase Transaction Fee: $0
- Returned Payment Fee: None
Is The Card For You?
Everything’s coming up roses when we compare the Petal 2 card to similar options for people with fair credit. The card’s lack of annual and other account fees, potential for a strong rewards structure and the ability to qualify for a lower APR than most cards aimed at those working on building their credit has the Petal 2 card smelling sweet.