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3. Petal 2 Visa® Credit Card: Great if you’re new to credit

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379 reviews from Intuit Credit Karma members

2.2

Rating: 2.2 out of 5.

Great for rewards with no credit history

Annual Fee: $0

This content is curated by Intuit Credit Karma’s Editorial team using data from members who were approved for this card or similar cards, or who self-matched this card or similar cards. Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse this content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Here’s the average credit limit of members who matched their Petal 2 Visa® Credit Card or similar cards.

% of members by credit limit range

The average credit limit for members who have matched with this card or similar cards is $2,598, with $1,000 being the most common.

Here’s the average credit score of members who matched their Petal 2 Visa® Credit Card or similar cards.

% of members by credit score range

The average credit score for members who have matched with this card or similar cards is 639, with 769 being the most common. Note this is just one of the deciding factors when it comes to getting approved.

Member stats

Updated daily

41.6%

Average credit utilization (or what percent of the card’s credit limit is being used) of members who matched with this card or similar cards.

40 years

Average age of members who matched this card or similar cards.

$78,878

Average annual income of members who matched this card or similar cards. Note: Income may be estimated for some members by Credit Karma and may differ from members’ actual incomes.

Pros and cons

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Apply with no credit history

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No fees apart from interest payments

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Offers a money management tool

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APR on purchases can be high

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People who have struggled with credit may not qualify

What makes the Petal® 2 Visa® Credit Card stand out

If you’re new to credit, the Petal® 2 Visa® Credit Card can help you build credit without requiring a security deposit. Here are some of the card’s key features.

No credit history, no problem

Getting a credit card when you have no credit history can be tough. But with the Petal® 2 Visa® Credit Card, you don’t need prior experience with credit to apply.

Unlike other credit card companies, one of the things Petal considers when determining whether you qualify is your digital financial records — including bank account information.

That said, the card issuer does run a hard credit check when you apply and will consider your credit history if you have one. If you have bad credit due to missed payments, bankruptcy or other negative items, you may not qualify for the card.

Consumer-friendly terms

Many unsecured credit cards for no credit come with high fees, but you don’t have to worry about that with the Petal® 2 Visa® Credit Card. While you will pay interest on purchases if you carry a balance, the card comes without an annual fee, late fees, foreign transaction fees or any other kind of fee.

On top of that, you’ll get an automatic credit limit increase after 6 qualifying on-time monthly payments. A higher credit limit could make it easier to use the card for everyday purchases without worrying about hurting your credit scores with a high credit utilization rate.

Finally, the Petal® 2 Visa® Credit Card’s variable purchase APR ranges from 29.49% - 31.49%. If you qualify for its lowest rate, that’s better than some other credit cards designed for credit newbies. On the flip side, the higher end of this range isn’t especially low. If you carry a balance, you could end up paying a fair amount in interest every month.

Cash back rewards, plus a bonus for paying on time

The Petal® 2 Visa® Credit Card doesn’t limit its benefits to building credit. It also offers 1% cash back on all eligible purchases, so you can earn rewards when you use it.

Better yet, Petal offers the chance to see that rewards rate rise as you make on-time payments. Currently, six on-time payments brings the rewards rate to 1.25% and 6 more on-time payments brings it to 1.5%.

At the same time, it’s important to remember that any rewards you earn could be offset by interest charges. Keep in mind that it’s often not worthwhile to go beyond your budget just to earn rewards.

What else you need to know

The Petal® 2 Visa® Credit Card can offer a lot of value for people who are looking to build credit from scratch. Here are some other details to know before you apply.

• You can check if you’re preapproved before you apply, which won’t affect your credit.
• You can connect other banking accounts and manage your money through the Petal mobile app.
• Petal reports card activity to all three major credit bureaus: Equifax, Experian and TransUnion.
• You may need at least one active bank account to apply for the card.

Who this card is good for

The Petal® 2 Visa® Credit Card offers plenty of benefits and options to people who don’t want to put down a security deposit just to start building their credit.

Thanks to the card’s lack of add-on fees, strong cash back rewards and the potential for a competitive purchase APR, you could end up saving money as you work to build credit. But the upper limit of the card’s APR range is high, so you could end up paying a lot in interest if you’re not careful.

But the Petal® 2 Visa® Credit Card might not be ideal for people who already have a rough credit history, although they may still be able to get approved for the card. Fortunately, Petal’s preapproval process can help you get an idea of whether you’d be approved without requiring a hard credit check.

Not sure this is the card for you? Consider this alternative.

• Indigo® Mastercard®:
If your credit isn’t great, this card may be a good option for you.