Petal Visa Credit Card Complete Usage Guide & Credit Card Review
– Petal Visa Credit Card –
Petal Visa Credit Card: This Credit Card is unique among credit cards, with no credit score or security deposit available to those. This Fintech backed credit card is perfect for those searching for their first credit card with cashback rewards of up to 1.5 percent and no fees.
Petal Visa Credit Card: Key features
Card type: Starter.
Annual fee: $0
Security deposit: None.
Rewards: Up to 1.5% cash back on all purchases. Details:
- You start by earning 1% cash back on all purchases.
- Make six monthly payments on time, and your rewards rate rises to 1.25% cash back.
- Make 12 monthly payments on time, and the rate rises to 1.5% cash back.
APR: The ongoing APR is 14.49% – 25.49% Variable APR.
Penalty APR: None.
Credit limit: $500 to $10,000, depending on creditworthiness.
Foreign transaction fee: None.
Other perks:
- Payments are reported to three major credit bureaus, TransUnion, Equifax, and Experian.
- Account management and budgeting tools via the app (iPhone and Android) or mobile-optimized website. For instance, before making your monthly payment, you can see exactly how much it will cost in interest to carry a balance if you don’t pay in full.
- Certain Visa partnership benefits, like auto rental collision insurance, theft coverage, and roadside dispatch. Petal also supports Visa Local Offers, a way to earn Uber credits.
Highlights of the Card
- No fees whatsoever. No late fee, international fee, annual fee, or any-other-kind-of-fee, fee
- Up to 1.5% cash back after making 12 on-time monthly payments
- Variable APRs 14.49% – 25.49%
- 1% cash back on eligible purchases right away
- Up to 10% cash back from select merchants
- Build credit alongside tens of thousands of Petal Card members
- Cash flow technology may help applicants without credit history get approved
- $500 – $10,000 credit limits
- Petal’s mobile app makes it easy to manage your money, track your spending, and automate payments
- See if you’re pre-approved within minutes without impacting your credit score
- Petal reports to all 3 major credit bureaus
- No deposits required
- Card issued by WebBank, Member FDIC
The perks
- No fees. There are no annual, foreign transactions, over the limit, or even late fees.
- No credit history is required. If you have no credit score or limited credit history, your income and financial records, including your checking accounts and bill payments, may be analyzed to determine your eligibility. You can still apply if you already have a good credit history and you want to take advantage of the card’s generous fee structure.
- Potentially high credit limit. Petal offers credit limits between $500 and $10,000. This range is higher than average compared to similar cards. However, your limit is ultimately based on your ability to pay.
- Cash back rewards. You’ll earn 1% cash back on all eligible purchases. Petal will increase this cashback rate to 1.25% after you make six on-time monthly payments. Make 12 on-time monthly payments and your cashback rate will increase again to 1.5%. As of December 2019, you’ll earn up to 10% cash back at select merchants.
- Money-management tools. Download Petal’s associated mobile app to track your spending and upcoming payments. Streamlined information and data through the app give you a high-level view of your finances and spending. You can track all your accounts connected to Petal, as well as schedule payments.
- Set your own spending. Petal lets you set your own spending plan to track over a given time period.
Cons
- Limited redemption options for rewards
- Minimum rewards balance required to redeem via check
- Requires an eligible U.S. bank account if you don’t have a credit history
- Can still get denied with a poor credit history
- Potentially high interest rate
- Can’t use the card for cash advances or balance transfers
How does the Petal® Visa® Credit Card work?
The Petal® Visa® Credit Card is a bit different in its rewards structure, but it operates just like any other credit card on the market.
The most unique feature of the Petal® Visa® Credit Card is that it incentivizes you to have sound personal finance practices. In the first 12 months of card membership, you will earn the following cash back:
- 1% cash back right away
- 25% after 6 months of on-time monthly payments
- 50% after 12 months of on-time monthly payments
Since the Petal® Visa® Credit Card is designed to help you build your credit score, the tiered cashback is a great incentive to continue building your financial habits.
No Fees
Some products for people who are new to credit, such as secured credit cards, may be loaded with fees. That’s not the case with the Petal Visa Credit Card, which offers No;
- Annual fee
- Foreign transaction fee
- Late fees
- Replacement card fees
- Penalty APR
Some credit cards with annual fees offer additional cardholder benefits or rewards, which makes the fee worth it for some cardholders. However, if you’re looking for a simple, money-saving option, a card without fees may be the way to go.
This Card is Best For
The Petal Visa card is a fine first credit card for recent college graduates, young adults, and anyone else who has not yet fully established positive credit history — but there is no damaged record that might interfere with the card’s approval.
It’s also a good choice for those who want a credit limit for cards in this category that is on the higher side. Unlike a secured card that limits you (at least initially) to the amount you can deposit, Petal will allow you a limit of at least $500, with many secured cards or even some competing starting credit cards, without a deposit.
The theoretically higher credit limit could make the Petal Visa more useful in building a positive credit history than most starter credit cards. That’s because you can spend a higher limit without cutting too much on what’s known too your “cash use.”
A measure of the proportion of your usage limit, credit offices — including the three major ones that Petal reports to — reward lower usage with higher credit scores, all other factors being equal.
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What should I know before I apply?
You must be at least 18 years old or 19 years old in AL and NE and a US resident with a valid Social Security number or Individual Taxpayer Identification Number (ITIN).
Information you’ll need
- Full name and contact information
- Residential status
- Annual income, source of income and employment information
- Social Security number and date of birth
What credit score do I need?
To apply for the Petal® Visa® Credit Card, you need not have a credit history. Petal will however first check for pre-qualification based on your credit score, so if you have a fair to a good credit score, you will have a better chance of approval.
If you don’t have a credit history, Petal can allow you to connect your financial accounts, including your bank details, to prove adequate income and a responsible bill payment history.
How to apply for the Petal® Visa® Credit Card
Applying for the Petal® Visa® Credit Card is simple:
- Go to the provider’s site and click Apply now.
- Fill out the requisite information on each form to complete your application.
- If preapproved, Petal will alert you and invite you to fill out the full application
How to use the Petal Visa card:
- Pay your bill on time every month to secure the maximum cashback rate.
- Pay off your entire new balance by the due date every month to avoid the card’s high APR.
- Use the Petal app to build good financial habits by monitoring your spending, due dates, and interest charges.
- Take advantage of the Petal Visa card’s free credit score tracking by regularly monitoring your credit.
If you are looking to build your credit score, the Petal Card is absolutely ideal. While the platform can not guarantee an increase in your ranking, Petal will report all of your on-time payments at the very least. This – alongside a number of other key metrics, the main three major credit rating offices view very favorably.
We like the fact that on qualifying transactions you can receive cashback too. Although the credit card originally comes with a 1 percent cash back bonus for qualifying transactions, you are increasing that to 1.25 percent and 1.5 percent, respectively, by making 6 and 12 monthly for-time payments.
It is also noteworthy that there are no fees to the card, other than your respective APR rate. As such, there is no requirement to pay annual fees nor will a late payment fee be charged to you.
We hope this article was useful and educative, do well to share these messages with friends and loved ones. If you have a question, kindly drop your comments below.
