If you're looking for a credit card that can help you build or establish credit, you're in the right place. Theis an alternative to a big bank. Petal is FinTech at its finest.
Petal may be new to the scene, but they've partnered with WebBank which means that your not blindly trusting a new-to-the-scenes company with your money. This card really shines for people that are looking to build credit or establish new credit. This card offers something most lenders can't - Petal does more than just look at your FICO credit score to figure out if you are worthy of card approval. Petal also uses some machine learning that takes your income, spending patterns, and savings into account before determining if you are approved for the card. This of course, requires that you give Petal access to some of the bank accounts you use today for analysis. Don't be scared off by this though. The connection process is similar to what you have probably already done for any budgeting apps you use, like mint.
This card is a standout in the space for new credit users because it doesn't require a security deposit to open the account, has no annual fee, and has a pretty competitive APR. Additionally, Petal recently launched a cash back rewards program.
Earning cash back is pretty simple. You'll start off earning 1% cash back on your everyday purchases. Make 6 on time payments in a row and your rate will be bumped up to 1.25%. Continue down your path of financial independence and make 12 on time payments in a row and your rewards rate will be upped to 1.5%
1.5% isn't the best cash back rate on the market, but for someone that is building credit it is top of the line. Also, you don't have to worry about annual fees chipping away at your cash-back earnings, which is a serious concern for some other cards in the space, like the QuicksilverOne, which offers a similar 1.5% cash back rate, but comes with a $39 annual fee and a much higher APR.
In addition to the everyday cash back rewards, the Petal Visa has some other impressive perks that give it solid marks and make it a worthy contender.
If you're new to credit and looking for your first card, this is a strong bet. The cash back earning rates are on-par with its peers in the space once you've met the 12 months of on-time payment threshold. No annual fees also make this a great card to get as a starter card.
If you've got bad credit and a history of missing payments you may not be approved for the Petal card. It doesn't hurt to check the prequalification they offer, but you may be better off with another type of product meant to help consumers build credit like a secured credit card or a credit builder loan.
On the flip side, if you already have good or excellent credit, another cash back credit card might be better for you. We love the Uber Visa for its boosted cash back earning power in categories like dining and travel, all while staying annual fee free.
WebBank may not be as familiar to you as say, Capital One, but that doesn't mean it's not worth considering. Chartered in 1997 in the state of Utah, WebBank has over 20 years of serving consumers and has an A+ ranking from the Better Business Bureau.
The Petal Visa is a good card and we're onboard with their mission of helping the under banked. This no fees card is designed with a consumer first approach.
If you do sign-up for Petal, make sure you review your account standing in 12-18 months. If your credit score builds rapidly over a year, you might find yourself in a position to get a card with a higher rewards earning potential. That doesn't mean closing your Petal account though - you'll want to keep your average age of accounts high to keep that credit score healthy!