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The Petal Visa Is a Perfect Card if You Have Average Credit and Want Good Cash Back Rewards

Money.com logo Money.com 9/19/2020 Jason Steele
a close up of a device: Review-Credit-Card-Petal-Visa © Courtesy of Petal Review-Credit-Card-Petal-Visa

When you have “fair” or “average” credit, searching for a new card can feel like walking through minefield. Just when everything seems safe, you could be faced with an extremely high fee or an exorbitant interest rate — or simply be declined for what seemed like a good card for you.

The people behind the Petal Visa card are trying to solve this problem. They’re offering a new kind of credit card to people with average credit, but one that charges no fees and even features solid cash back rewards.

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Petal Visa Card: Key Terms

  • Rewards: 1% cash back on all purchases, increasing to 1.25% after six months of on-time payments, and 1.5% after 12 on-time monthly payments
  • Annual Fee: None
  • APR: 12.99% – 29.49% Variable

How the Petal Card Works

Applying for a card and being denied can hurt your credit score, so the Petal Card offers a pre-approval process to avoid causing damage. Prospective applicants fill out some information, and Petal performs a “soft pull” on their credit, which doesn’t affect one’s score. Then, you’ll be told whether or not you’re likely to be approved before you officially apply. Petal specifically says their card is a great choice for people who are new to credit, and that no credit is required to apply. That’s because Petal looks beyond your credit score during its application process.

Once approved, you’ll receive a card that has no annual fees, no late fees and no foreign transaction fees. You’ll start off by receiving 1% cash back on all purchases, but that will increase to 1.5% after you make 12 consecutive monthly payments on time. The standard interest rate is 12.99% – 29.49%, depending on your credit history.

Petal Visa Card Review: Advantages

This is one of the rare cards that has no fees at all, which is great for people who love simplicity and really hate credit card fees and “gotchas.” Its graduated cash back rewards program is also a sweet incentive to make on-time payments while earning competitive rewards as your credit improves. Yet another plus: You don’t need excellent or even “good” credit to be approved.

Petal Visa Card Review: Disadvantages

The standard interest rate can be as high as 29.49% APR, which is very high. Nevertheless, this is what you should expect from any card if you have had credit problems in the past. Also, this card doesn’t allow you to change your payment due date, which nearly all other cards offer.

Alternatives: Good Cards if You Have Average Credit

Capital One QuicksilverOne. This is another card available to those with average credit and it also offers rewards. You earn 1.5% cash back on all purchases, with no limits. However, it does have a $39 annual fee.

Capital One Platinum. Like the Quicksilver, this card is a good basic option available to people with average credit. However, this card doesn’t offer any rewards — though it doesn’t have an annual fee either.

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Bottom Line

The Petal Visa is a unique card for those with average credit. By featuring rewards and having no fees, it’s worth considering when you want to earn cash back as you build credit.

More From Money:

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7 Tips for Paying off Your Credit Card Debt

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