Petal® 2 “Cash Back, No Fees” Visa® Credit Card Review

Petal has partnered with WebBank, Member FDIC to offer consumers with no credit history a way to establish credit and earn rewards all for free. That's right, as they claim, there are no hidden fees.
  • Annual Fee:
  • Regular APR:
    12.99% to 26.99% Variable
  • Recommended Credit Score:
    620 - 850

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Until recently, finding a credit card that generated rewards for consumers with no credit at all was essentially impossible.

However, the Petal® 2 credit card offers up to 1.5% cash back on eligible purchases, has no annual fee or deposit requirement, and doesn’t charge any fees at all.

Building credit is more transparent and rewarding than ever before. Since the Petal® 2 card does not charge an annual fee or require a deposit, applicants can truly build credit with a cash back rewards credit card.

Rewards begin at 1% on eligible purchases and extend to 1.5% after 12 on-time payments. However, shopping at certain vendors can get you an additional 2%-10% cash back, depending on the merchant.

Petal® 2 Credit Card Pros and Cons


  • Earn generous Cash Back Rewards with an introductory credit card.
  • No fees or security deposit is required to open an account.
  • Simple rewards structure.


  • No balance transfer options.
  • Better rewards can be found elsewhere if you have an established credit score.
  • No introductory bonus.

What Is the Petal® 2 Credit Card?

Petal launched the Petal® 2 credit card to help consumers build and repair their credit scores without any fees.

How Does the Petal® 2 Credit Card Work?

The Petal® 2 Credit Card sets itself apart, starting with the application process. Applicants go to the Petal website, where they begin the pre-approval and application process.

Since Petal has access to a proprietary algorithm, the approval process goes beyond simply checking your credit score. Applicants may also be evaluated by looking at their spending, saving, and income information to determine their creditworthiness. 

This is especially powerful if you do not already have a credit score, but you want to establish credit. Since this is a credit card and not a secured credit card, there is no security deposit required, and you can begin earning rewards as soon as you receive the card.

Petal® 2 Visa Credit Card Rewards

Earning cash back on an introductory credit card is almost unheard of, but the Petal® 2 credit card allows cardholders to begin earning rewards as soon as they get their credit card.

Earning “Cash Back” Rewards

Petal offers a tiered approach with the reward structure on the Petal® 2 Credit, which incentivizes good financial practices and increases the cash back percentage over time.

When a new cardholder receives their card, they will earn unlimited 1% cash back on eligible purchases for the first six months. If they pay their bill for six months consecutively with no late payments, the earning rate will jump to 1.25%. And once they pay their bill with 12 on-time payments, it will max out at unlimited 1.5% cash back on eligible purchases.

Various participating merchants offer increased cash back incentives for shopping, with some offering between 2% up to 10% cash back on purchases. The Petal App will tell you if there are participating merchants in your area.

Redeeming “Cash Back” Rewards

Redeeming cash back is easy and straightforward. Cardholders can apply any amount of cash back to their statement balance as a statement credit; they can request a check or even a direct deposit to their bank account.

Petal® 2 Credit Card Features & Benefits

The Petal® 2 Credit Card offers some unique benefits that entry-level credit cards usually do not have:

No Annual Fee

There is no annual fee for the Petal® 2 Credit Card. It is that simple. 

No Security Deposit

Since this is a credit card and not a secured card, you are not required to put up any money for a security deposit. This is unique in the entry-level and credit building market because most credit card issuers will either charge an annual fee to mitigate risk or require a security deposit. 

Yay for technology! Moments like this is what makes American innovation a beautiful sight to see!

Great Cash Back Program

Customers who are approved for the Petal® 2 will immediately have access to a lucrative cash back system to begin earning rewards.

No Foreign Transaction Fees

Most credit cards and even introductory credit cards charge a foreign transaction fee. Foreign transaction fees can be pretty expensive, often ranging from 1% to 3%.

However, holders of the Petal® 2 credit card are not charged foreign transaction fees, making this a good choice for spending abroad.

Credit-Building Features

The Petal® 2 card is entirely designed to build credit with low fees. There are no late payments or foreign transaction fees, making this card an excellent option if you are trying to build credit and avoid any fees.

Most starter credit cards require an annual fee or secured deposit to prevent defaults. The Petal® 2 card does not need either. Instead, new cardholders can receive up to a $10,000 credit limit based on creditworthiness without any fees.

It is an excellent choice for consumers who are trying to build credit because it does not charge any fees and still offers a decent rewards program considering consumers with fair credit can qualify.

The Petal® 2 card also reports to all three of the major credit bureaus, which is a huge plus for cardholders trying to build credit.

Since the spending and payment data are transferred to all three major credit bureaus, applying for a loan or other credit card is straightforward.

Petal® 2 “Cash Back, No Fees” Visa® Credit Card Downsides

While there are some profound benefits associated with the Petal® 2 credit card, it’s not perfect, and there are a couple of downsides depending on what you are looking for:

No Sign-Up Bonus

Sign-up bonuses are one of the most powerful incentives credit card issuers have to attract new customers. There is no sign-up bonus with the Petal® 2 credit card, but since it is designed to help consumers build or repair their credit and is more accessible than most other entry-level credit cards, it makes up for the lack of a sign-up bonus.

No Cash Advances

Most credit cards have a predetermined interest rate for cash advances. However, the Petal® 2 card does not offer any cash advances at all, regardless of the cardholder’s credit score.

Since this card is primarily for building credit and helping people start their credit score from scratch, they offset the lucrative rewards structure against any riskier offerings such as a cash advance system.

Minimum Payments

The Petal® 2 credit card does require minimum monthly payments, and the minimum payment date is permanent. Some credit card issuers allow you to change your payment due date, but Petal does not.

How Does the Petal® 2 Visa Credit Card Stack Up?

#1. Petal® 2 Card vs Petal 1 Visa® Credit Card

Petal offers two different credit cards, the Petal® 2 Card and Petal 1 Visa® Credit Card, both issued by WebBank, Member FDIC. While they are both designed to help consumers build or repair credit, there are some notable differences.

Petal 1 Visa® Credit Card charges late payment fees ranging from $29 to $40. It also does not have a standard cash-back reward system; instead, cardholders can earn between 2% and 10% at participating merchants. Finally, Petal 1 Visa® Credit Card has a credit limit ranging between $500 and $5,000 based on creditworthiness. 

Petal® 2 Credit Card has a more straightforward reward system and does not charge any fees at all. Approved applicants can immediately earn 1% cash back and up to 1.5% cash back if they make 12 on-time payments.

Both cards are excellent choices for consumers who want to build their credit score or repair a non-prime credit score. If you don’t know which one to apply for, the Petal website makes the application easy and will match you with the best card for your credit history and spending habits.

#2. Discover it® cash Back vs Petal® 2 Card

The Discover it® Cash Back is a robust cash back credit card that offers unlimited 1% cash back on all purchases, 5% cash back on rotating bonus categories, and a sign-up bonus that doubles the cash back you earn in your first year. This card has no annual fee, and it can be very lucrative for cardholders that can maximize the bonus categories.

The Petal® 2 Credit Card is also a $0 annual fee credit card that generates between 1% to 1.5% cash-back on eligible purchases. Participating merchants can offer up to 10% cash back on purchases.

There is no introductory bonus with this credit card, but since it is aimed at helping people build or establish credit, the reward structure is very generous.

These are both great credit cards for their markets, but they are not aimed at the same customers. The Discover it® Cash Back Is an excellent choice if you want a cash back credit card and already have an established credit history.

In comparison, The Petal® 2 Credit Card Is one of the best choices if you do not have a credit history and want to build one while still earning some cash back rewards.

#3. Citi® Double Cash Card vs Petal® 2 Card

Since the Petal® 2 card offers cash back rewards, comparing it to another popular $0 annual fee cash back rewards credit card will help clarify the difference between credit building cards and premium Cash Back Rewards credit cards.

The Citi® Double Cash earns an unlimited 2% on all purchases. Cardholders generate 1% cash back when they swipe their card, and they earn the other 1% when they pay their balance.

Since there are no bonus categories to manage or incentive bonuses to earn, the Citi® Double Cash Card is both simple and powerful. 2% back on all purchases adds up quickly to a substantial earnings rate since it does not matter where you swipe your card.

The Petal® 2 also offers cash back rewards, which can be redeemed as a statement credit, direct deposit, or check. Once applicants are approved for the card, they immediately can earn 1% cash-back on all purchases.

Most other starter or secured credit cards do not have any rewards structure, so this is already a great deal; once the cardholder makes six on-time payments, their rewards rate increases to 1.25% cash back. Once they make 12 on-time payments, the cash back rewards rate increases to 1.5% on eligible purchases.

Who Is the Petal® 2 Card Best For?

The Petal® 2 card offers cash-back rewards and no annual fee to applicants with credit and no credit. The Petal 2 card has neither because it may use proprietary technology to decrease risk. 

Cardholders earn cash back rewards and do not pay any fees; the Petal® 2 card is an excellent choice for those seeking to build or establish credit.

However, if you have an established credit score and are trying to maximize potential cash-back opportunities, you can probably find better choices on the market.

This does not make the Petal® 2 card bad since it is geared toward cardholders with no to low credit; rewards cards that require a higher credit score may be a better option.

Frequently Asked Questions

Since the Petal® 2 card is a relatively new way to build credit, let’s discuss some of the more frequently asked questions Surrounding it:

Is the Petal® 2 A Good Credit Card?

Whether you are looking to establish credit or give your credit score a boost, The Petal® 2 credit card is an excellent choice for a few reasons.

First, there are no fees or security deposits, so you can start using it immediately once you are approved for the card. Most cards that help establish or boost credit do not offer robust rewards.

The Petal® 2 card challenges this standard by providing 1% up to 1.5% unlimited cash back, and certain merchants provide extra incentives by offering between 2% and 10% cash back.

Does the Petal® 2 Credit Card Give Credit Increases?

While the Petal® 2 card may approve credit limit increases if you qualify, they are not currently taking customer limit increase applications.

What Credit Bureau Does the Petal® 2 Credit Card Use?

The Petal® 2 credit card helps you build, establish, or repair your credit score quickly because it reports to all three major credit bureaus: Equifax, TransUnion, And Experian.

Can You Qualify for the Petal® 2 Credit Card with No Credit?

Yes, applicants with no credit history can be approved for the Petal® 2 credit card. Since the issuers use a proprietary algorithm and traditional credit scores, they can extend credit based on other factors.

Is the Petal® 2 Credit Card Legit?

The Petal® 2 credit card is indeed legit. The Petal 2 Credit Card is issued by WebBank, a state-chartered FDIC-insured bank headquartered in Utah. Petal partners with WebBank to offer the Petal 2 card to customers across the country.

Does the Petal® 2 Credit Card Require a Credit Check?

The Petal® 2 credit card starts with a soft credit inquiry for pre-approval, and if approved, then requires a hard credit inquiry, which may make your credit score decrease by a few points. However, before submitting a formal application, you can go through the pre-approval process, which will require a soft credit inquiry. If you are pre-approved, you can then apply for The Petal® 2 credit card.

Bottom Line: Petal® 2 Credit Card Review

Building, establishing, and repairing credit is now more accessible and more rewarding than ever before. The Petal® 2 credit card does not charge any fees, doesn’t require a security deposit, and generates rewards.

Since Petal uses a proprietary algorithm in addition to traditional credit scores, applicants with little or no credit history still have a chance to build credit because factors such as spending, income, and savings are considered during the card application process.

If you already have an established credit score and are trying to find the best rewards credit card or cash back credit card on the market, you may want to skip the Petal® 2 credit card since there are more lucrative options on the market.

Overall, if you want to build your credit and earn rewards without paying any fees, then the Petal® 2 credit card is definitely worth considering.

Justin Estes
Justin Estes

Justin Estes is a Senior Personal Finance Writer who is a recognized small business accountant, consultant, and credit card expert. His background in accounting and finance led to a passion for helping people make the most of their money and matching them with financial products that enhance their lifestyle. Justin attended Charleston Southern University where he double-majored in Finance and Accounting. Justin’s areas of expertise are credit cards, small business finance, accounting, and taxes.