Because the Petal Credit Card is available to consumers with limited credit or no credit at all, you should consider this option as an alternative to a secured credit card. While secured credit cards require you to put down a cash deposit as collateral to secure your line of credit, the Petal Credit Card, an unsecured card, does not.
The lack of fees with this card—and the fact you can earn rewards—makes it a smart option for anyone who is ready to build credit for the first time.
Available to consumers with limited or no credit history
Earn higher rewards rates after making on-time payments
No major fees
Earn more cash back by shopping at partner stores
Limited redemption options for rewards
Minimum rewards balance required to redeem via check
- Available to consumers with limited or no credit history: You can apply without a credit history, and you can prequalify for the card without a hard inquiry on your credit report.
- Earn higher rewards rates after making on-time payments: This card reinforces good habits by giving you access to a higher rewards rate when you consistently make on-time credit- card bill payments.
- No major fees: The Petal Credit Card charges no annual or foreign transaction fees, no late payment fees, or any other kind of fees.
- Limited redemption options for rewards: You can only redeem your rewards for statement credit or check, not for gift cards or merchandise like some other cash-back credit cards do.
- Minimum rewards balance required to redeem via check: There’s no minimum rewards balance you need to redeem your cash back for a statement credit, but if you want your rewards in check form, you must have at least $20 in rewards.
- No bonus for new cardholders: The card does not offer a welcome bonus, which is relatively common for most rewards cards, even ones for bad credit. For example, the Discover it Student card matches all the rewards you earn in the first year.
Earning Points & Rewards
The Petal Credit Card offers a tiered rewards program that incentivizes you to pay your bill on time. You’ll start out earning 1% cash back on all purchases. From there, you’ll earn 1.25% back once you make six on-time payments, then 1.5% back once you’ve made 12 monthly payments on time.
When compared to other rewards cards like it, the Petal fares well. It’s the only card for those with low or no credit scores that provides a 1.5% cash-back rate.
An on-time payment means you make at least the minimum payment by the date on your bill. To avoid debt and interest charges, pay your statement balance full each time it comes due.
This card lets you redeem your cash rewards as a statement credit or via a check. There is no minimum for statement credit redemptions but you’ll need to redeem at least $20 to get a check. While these options are good ones, note that many cash-back credit cards a broader selection of redemption options including gift cards, merchandise, charitable donations, and more.
How to Get the Most Out of This Card
Since the Petal Credit Card is geared to consumers with a limited credit history, you’ll want to use it regularly to build good credit. Fortunately, this credit card reports to all three credit reporting agencies—Experian, Equifax, and TransUnion.
Sign up and use your credit card for all your regular purchases, then make your payments early or on-time in order to earn more cash-back as the months progress.
The Petal Credit Card provides phone and email support.It provides a mobile app that helps you track your spending and manage your money in one place. It also gives you the ability to track monthly changes in your Experian credit score, which is an important habit to get into was you try to build good credit scores
The Petal Credit Card comes with standard security features and the ability to freeze or unfreeze your account from the mobile app, at any time you want.
Petal Credit Card Fees
The Petal Credit Card doesn’t charge any out-of-the-ordinary fees to speak of.