Petal 2 Visa Credit Card review: One of the best no-fee cards for building credit

The main benefit to having the Petal 2 Visa card (outside of its cash-back rewards), is that you don’t need a credit score to qualify and it can help you establish a credit history. It’s an unsecured credit card, so you don’t need an upfront security deposit to open an account.

Plus, your account activity is reported to all three major credit bureaus. So when you pay your monthly bill on time and in full, over time, you’re more likely to see your credit score grow. By making six on-time monthly payments, you can earn a credit limit increase through Petal’s Leap program.

You can also take advantage of special offers to earn 2% to 10% cash back from select local and national partner merchants. This card also has several Visa credit card perks, such as roadside dispatch, ID theft protection and discounts through Visa Offers and Perks.

Earning and redeeming cash back is easy with the Petal 2 “Cash Back, No Fees” Visa Credit Card. You can earn cash back on all eligible purchases right away, and boost your rewards with on-time monthly payments. 

You’ll earn up to 1.5% on eligible purchases, you start by earning 1% cash back and after making:

• Six on-time payments, you’ll earn 1.25% cash back on eligible purchases
• Twelve on-time payments, you’ll earn 1.5% cash back on eligible purchases

You can redeem your cash back for a statement credit, an ACH transfer or a mailed check. To receive a check or ACH transfer, you must redeem a minimum of $20. There is no minimum redemption amount for statement credits.

The Petal 2 Visa Credit Card is a solid option if you have no credit history or at least a fair credit score (580+ FICO Score). But if you have a credit history and your credit score is poor, you may need to consider a secured credit card, such as the Discover it® Secured Credit Card.

The Discover it Secured Credit Card requires an upfront deposit of $200 to $2,500 (in $100 increments), which determines your credit limit. If you’re okay with that arrangement, this card has several advantages over the Petal 2 Visa card. It’s more rewarding for gas station and restaurant spending and has a welcome offer.

You’ll earn 2% cash back on the first $1,000 in combined purchases at gas stations and restaurants each quarter (then 1% cash back) and all other purchases earn 1% cash back. On top of that, Discover will match the cash back you earn at the end of the first year. So you’ll effectively earn a minimum of 2% cash back on all purchases for the first year.

Petal 2 Visa Credit Card vs. Chase Freedom Rise℠

The Chase Freedom Rise℠ is an unsecured cash-back credit card designed for anyone new to credit. It earns a generous 1.5% cash back on all purchases. While this matches what you can earn with the Petal 2 Visa, you get that return from day one, whereas with the Petal 2, you’ll need to make 12 on-time monthly payments first.

The Freedom Rise also has a small $25 intro bonus that’s easy to earn because you only need to set up automatic payments within the first three months of account opening to qualify for it. If you have a Chase bank account, such as the Chase Total Checking® or Chase College Checking℠ with a balance of at least $250, your approval odds for this card increase.

This card also provides a path to upgrading to a more rewarding card as your credit grows, including the Chase Freedom Unlimited®.

The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is an appealing option for anyone who wants to start building their credit history without opening a secured credit card. Plus, you can earn up to 1.5% cash back on every eligible purchase.

However, it doesn’t provide an intro bonus offer and as your credit score increases, you won’t have a path to upgrading to a more rewarding card. If you have good credit or better, you’ll likely be better off considering a rewards credit card with a better suite of benefits.

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Petal 2 Visa Credit Card issued by WebBank.

For rates and fees of the Discover it® Secured, click here.