Petal 1: Perfect for beginners

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The Petal 1 is a “No Annual Fee” Visa Credit Card. Instead of basing your creditworthiness on your traditional credit score, Petal 1 also creates a "cash score", which takes into account your income and spending based on your bank history. This means it is easier to get approved if you have bad or no credit.

Eventually, your cash score can help you qualify for more credit at better rates.

The card offers higher limits, better rates and no annual fee. As long as you pay your bills every month, your card will help you build credit without having to pay pesky fees.

Petal 1 also features no international fees — meaning you can take your card on the road with you wherever you go without it costing you extra.

Petal 2: Perks without fees

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Petal 2 is a “Cash Back, No Fees” Visa Credit Card designed to help you build credit with absolutely no fees.

Once you’ve graduated to Petal 2, you’ll also earn cash back every time you use the card. Petal will start you out with 1% on every transaction and if you keep on top of your monthly payments for a full year, you’ll earn up to 1.5% back.

Petal 2 is designed for applicants with fair-to-good credit or cash flow. It has all the same perks as Petal 1, but higher credit limits and lower interest rates.

How do I know which card is best for me?

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Attributes Petal 1 Petal 2
Cash Back 2% to 10% at select stores. 1% to 1.5% on every purchase, plus 2% to 10% at select stores
APR 19.99% to 29.49% 12.99% to 26.99%
Credit limit $500 to $5,000 $500 to $10,000
Fees No annual fee (late and returned payment fees apply) None

While both cards offer some solid rewards as well as the opportunity to build up your credit score, each meets a different set of needs.

Petal 2’s interest rates start at the much lower 12.99% and offer higher credit limits, along with more cash back opportunities.

And Petal 1 is a top-notch option for borrowers who know they can consistently make their monthly payments on time and in full. Staying on top of your bills will ensure you avoid fees while steadily building up your credit.

You can manage your account for either card through the app or online. The Petal app includes:

  • A budget planner
  • A payments calculator
  • Updates on your credit score
  • Cash back offers
  • Personalized spending insights

Rake in the cash back

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With both Petal cards, you’ll have points offers from local stores like Gap, Banana Republic, Old Navy, Lowe’s and Casper automatically loaded into your account. This cash back offer works like a traditional rewards program where you’ll get a certain percentage back every time you use your card at one of its affiliated retailers.

Your offers will earn you 2% to 10% cash back that will be added to your Petal wallet the next billing cycle. You can then use the contents of your wallet to help pay down your card balance.

Let’s say you spend $75 on groceries every week. By the end of the year, if you’ve been using your Petal 2, you could earn up to $58.50 from your groceries alone.

Using it for big purchases pays off as well. Time to buy a new couch? Using your plastic for that $2,000 purchase puts another $30 back into your wallet.

All these little amounts add up, especially when you’re not dealing with a bunch of fees taking a bite out of your rewards. But more importantly, Petal gives you the opportunity to regain control of your financial standing. When you make payments consistently, Petal will report your responsible spending to all three major credit bureaus.

Your current credit score doesn’t tell the whole story, and with a little help from Petal, you can rewrite your narrative to enjoy your present while setting yourself up for the future.

About the Author

Sigrid Forberg

Sigrid Forberg


Sigrid is a reporter with MoneyWise. Before joining the team, she worked for a B2B publication in the hardware and home improvement industry and ran an internal employee magazine for the federal government. As a graduate of the Carleton University Journalism program, she takes pride in telling informative, engaging and compelling stories.

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