The Petal 1 No Annual Fee Visa Credit Card, issued by WebBank, could be the ideal choice for you. Designed specifically for those who have faced credit challenges in the past, this card stands out from the crowd by not requiring an upfront security deposit.

Although the rewards may not be as impressive as other options, the Petal 1 card offers a cost-effective and low-risk solution for credit-building, while potentially granting you access to a Higher-than-average credit limit.

If you’re eager to embark on your credit-building journey with an unsecured card, the Petal 1 No Annual Fee Visa Credit Card is worth considering.

Moreover, if your credit is better than good, you may be eligible for Petal’s higher-tier cards, which offer more rewards and features.

Let’s take a closer look at what this card has to offer.

Key Features

Credit Building Rating: The Petal 1 No Annual Fee Visa Credit Card is a reliable option for those looking to build their credit scores.
Cost of Membership: There is no annual fee associated with this card, making it an affordable option for credit builders.
APR: The card has a variable APR ranging from 24.74% to 34.24%, which is considered fair.
Initial Credit Limit: Users can receive an initial credit limit between $300 and $5,000, which is considered excellent.
Access to Higher Credit Limit: Cardholders can earn a credit limit increase in as little as six months, subject to terms and conditions.
No Security Deposit Required: There is no security deposit required for this card, making it an excellent option for those looking to avoid upfront costs.
Other Rates and Fees: The card has no minimum interest charge or foreign transaction fees, but it does have late payment fees of up to $40 and returned payment fees of $29.
Rewards: This card does not offer rewards, which may be a drawback for some users.
Other Notable Features: The Petal 1 No Annual Fee Visa Credit Card includes additional features such as auto rental collision insurance, theft coverage, roadside dispatch, and support for Visa Local Offers.

What are the reasons to consider getting the Petal® 1 Visa® with no annual fee?

There are several reasons to consider getting the Petal® 1 Visa® with no annual fee, especially for those looking to build their credit without incurring additional costs. Some of these reasons include:

No Annual Fee: The Petal 1 “No Annual Fee” Visa card charges no annual fee, making it a compelling option for credit-builders. Many unsecured credit-building cards charge high annual fees, while secured credit cards require a refundable deposit upfront. Unlike other credit cards, the Petal 1 Card is free of annual fees and deposit requirements. This makes it an excellent option for cardholders looking to keep their costs low without tying up money.
Higher-than-average credit limit: The Petal 1 Card provides starting credit limits of $300 to $5,000, based on your credit history and financial standing. A stronger credit foundation translates into a higher limit, making it simpler to maintain low credit utilization, which in turn significantly boosts your credit score.
Robust mobile app: The Petal app provides useful tools for credit-builders, such as setting a monthly budget, tracking spending, finding Petal Offers near you, monitoring subscriptions charged to your card, and more. It also grants access to your VantageScore 3.0 credit score from Experian (updated monthly) and features a payments calculator that shows how much interest you’ll pay based on your payment amount.
Approval odds and Petal Cash Score: The Petal 1 Card is designed for users with no credit history or a non-prime credit score, offering decent approval odds for responsible credit-building. The issuer may evaluate your creditworthiness by generating a unique Petal Cash Score. They may also take into account alternative financial data, including income and bill payment history. This feature can be beneficial for those with a limited or unimpressive credit history but who are otherwise financially responsible.
Petal 1 Visa Card Rewards: The Petal 1 Card rewards program allows you to earn between 2%-10% cash back at select merchants through Petal’s Cash Offers. These funds will be added to your cash-back wallet in the following billing cycle. Although the rewards program may not be as robust as some other cards, it still provides an opportunity to earn cash back on purchases.
Redeeming Rewards: You can redeem rewards whenever you like, in any amount, by requesting a paper check from Petal or by receiving a deposit to a qualifying checking account. Earnings can be as little as $20 to get started.
Additional benefits: The Petal 1 Card comes with several additional benefits, such as Roadside Dispatch (Visa’s pay-per-use roadside assistance program), Lost or Stolen Card Assistance (emergency replacement card and cash delivery arrangement), and ID Navigator Identity Theft Protections (complimentary service from Norton LifeLock for credit monitoring and assistance if your identity is compromised).

The Petal 1 Visa Credit Card is an excellent option for individuals looking to build their credit without incurring high fees or needing a secured card.

The no annual fee, higher-than-average credit limit, useful mobile app features, alternative financial data consideration, rewards program, and additional benefits make it a unique and attractive choice for credit builders.

What are some reasons to consider switching to a different card?

There are several reasons why one might consider switching to a different credit card other than the Petal® 1 No Annual Fee Visa® Credit Card.

While this card offers helpful credit-building features, it also has some drawbacks that may not be suitable for everyone.

1. Very high APR for some cardholders

The Petal 1 Card has a potentially high variable APR, ranging from 24.74% to 34.24%. This rate could be a significant concern if you struggle to pay off your balance in full each billing cycle.

While this APR is competitive with many unsecured credit-building cards, it exceeds the rate offered by the Petal 2 Card (17.74% to 31.74% variable). If you have a good credit score or can guarantee timely payments, consider researching alternative card options with lower interest rates for the long run.

2. Limited rewards program and perks

Unlike the Petal 2 Card, the Petal 1 Card does not offer consistent cash-back rewards.

With the Petal Perks program, you can earn 2% to 10% cash back when using your card at select local merchants. The offers are automatically loaded to your account, and you can redeem cash back earnings as a statement credit, check, or ACH transfer to your bank account. Enjoy the perks of cash backs conveniently without any hassle.

The Petal 1 Card, in partnership with Visa, offers auto rental collision insurance and theft coverage. It also has a pay-per-use roadside dispatch program and Visa Local Offers, which gives Uber credits for spending at featured stores (upon enrollment).

However, those after more comprehensive benefits might want to explore other options.

3. Rewards only available at select merchants

The Petal Perks program aside, this card lacks foreseeable and consistent rewards in its repertoire. Opportunities to earn rewards are only found at certain vendors, a factor that restricts the potential to accumulate rewards on the card.

If you favour a credit card that features greater versatility in terms of rewards or expenditure categories, alternative options like the Chase Freedom Unlimited or Citi Double Cash Card should be taken into consideration.

4. No added benefits beyond typical Visa and credit-building cards.

The Petal 1 Card does not offer any extra benefits beyond what is standard for Visa and credit-building cards, capping its long-term value.

If you’re interested in a credit card with more comprehensive benefits, such as travel insurance, extended warranty coverage, or exclusive access to events, you might want to explore options like the Chase Sapphire Preferred Card or the American Express Gold Card.

5. Possible higher APR and fees for late payment.

Cardholders may face a significant setback in the form of late fees and bounced payment fees with the Petal 1 Card.

If you’re concerned about these fees and want a card that offers more lenient terms, you might want to explore other options like the Discover it® Secured Credit Card or the Citi Simplicity® Card, both of which have no late fees or penalty rates.

6. No balance transfer option is available

The Petal 1 Card does not offer a balance transfer option, making it less suitable for those who want to consolidate their debt and pay it off at a lower interest rate.

If you need a card with a balance transfer feature, you might consider cards like the Wells Fargo Platinum Card or the BankAmericard® Credit Card, which offer introductory 0% APR on balance transfers for a specified period.

While the Petal 1 No Annual Fee Visa Credit Card has its advantages for credit-building, it may not be the best choice for everyone.

If you prioritize rewards, additional benefits, lower APR, or balance transfer options, exploring other credit card options that better align with your financial goals and preferences is recommended.

Alternative of Petal® 1 No Annual Fee Visa® Credit Card

Check out this chart comparing credit cards for those with limited or no credit history.

Capital One QuicksilverOne Cash Rewards Credit Card	1.5% cash back on all purchases	See terms	$39	1. Your account has been reviewed for potential credit limit increases following six months of consistently on-time payments. 2. automatic cash back redemption available, 3. No foreign transaction fees
Credit One Bank American Express® Card	1% cash back on all purchases (terms apply)	Starting at $500	$39	1.Determine if you qualify online. Your credit performance may lead to future credit line increases. Ensure the best possible choice of words, readability and eloquence, maintaining the original intent. 2. Being an Amex® card member qualifies you for an array of benefits like purchase protection, extended warranty coverage, return protection and Amex® Offers access.
Discover it® Secured Credit Card	2% cash back at gas stations and restaurants (up to $1,000 in purchases per quarter, 1% thereafter), 1% cash back on other purchases, matches all your cash back in the first year	$200-$2,500 (equal to your deposit)	$0	1. Includes free FICO score, 2. There will be no late fee for the first late payment (subsequent late payments may incur a charge of up to $41). 3. No foreign transaction fee, 4.Enjoy the benefit of no penalty APR and guaranteed APR stability, even when skipping a payment.

Capital One QuicksilverOne Cash Rewards Credit Card: This card offers unlimited 1.5% cash back on every purchase, which should help offset the $39 annual fee. It also provides a chance for a credit limit increase after six consecutive on-time payments, making it a great option for those looking to improve their credit scores.

Credit One Bank American Express® Card: With numerous cardholder perks like purchase protection, extended warranty coverage, and return protection, this card is a low-cost option for those with fair credit or better looking for an unsecured starter card. Despite the $39 annual fee, you can offset this cost by using the card for most of your spending.

Discover it® Secured Credit Card: This card blends credit-building with cash back rewards, presenting a mouthwatering offer: 2% back at gas stations and restaurants (up to $1,000 per quarter) and 1% back on every other purchase.

In the first year, Discover will match all the cashback that you earn. Although the card mandates a deposit, you will benefit from greater control over your credit limit as you can deposit between $200 and $2,500. With frequent, responsible usage, you may even qualify to upgrade to an unsecured Discover card.

Would the Petal 1 Visa Card be a good fit for you?

While the Petal 1 Visa Card is a viable option for individuals with limited credit history, its high APR and limited rewards may deter some applicants. Secured or student credit cards, such as the Discover it® Secured Credit Card, often provide more rewarding cash-back opportunities and no annual fees.

When comparing the Petal 1 and Petal 2 Visa Cards, the latter offers better long-term value due to its comprehensive rewards program and lower APR range.

It is crucial to evaluate each credit card option based on personal financial needs and goals, considering alternatives like the Capital One Quicksilver One Cash Rewards Credit Card or the Credit One Bank American Express® Card for consistent rewards and additional benefits.

About Author

Dhiraj Jha

As a personal finance and credit cards expert, I provide valuable insights and advice on budgeting, saving, investing, and debt management. I am also an expert on credit card rewards programs and help readers make informed decisions about which cards are right for them. My goal is to help people improve their financial literacy and make better financial choices.

Petal 1 No Annual Fee Visa Credit Card Review