About Company
Petal is a financial company that focuses on providing credit cards to individuals, emphasizing responsible credit practices. The Petal credit cards are designed to help users build credit by considering factors such as creditworthiness, responsible spending, and banking history. These cards offer features like varied credit limits, making it accessible for a diverse market. Petal aims to create a positive impact on users' credit history and financial well-being by encouraging responsible spending and making timely payments.
Key Features
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Petal Credit Cards. Petal provides three different credit cards, each designed to cater to various financial needs and creditworthiness levels. These cards are accessible to individuals who may have limited credit histories or lower credit scores.
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Credit Building. A primary focus of Petal is to help users build credit responsibly. By considering factors beyond traditional credit scores, such as income and banking history, Petal aims to provide access to credit for a broader range of individuals.
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Cash-back Rewards. Petal cardholders can earn cash-back rewards on their purchases. Depending on the specific card and spending habits, users can receive cash-back rewards of up to 10%, providing an incentive for responsible spending.
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No Membership Fee. Petal typically does not charge a membership fee for its credit cards, making them accessible to a wider audience. However, it's important to note that fees and terms may vary, and some users may be subject to a fee, potentially up to $59.
Pros and Cons
Pros
Cons
Reliability
Petal credit cards are issued by WebBank, adding a layer of reliability to the financial products offered by Petal. WebBank is a well-established financial institution, and its involvement in the issuance of Petal credit cards contributes to the overall reliability and legitimacy of the credit offerings. Users can have confidence in the reliability of Petal as they navigate their financial journey with the support of a reputable banking partner like WebBank.
Products
Petal 1
Petal 1 is a credit card designed to be accessible and user-friendly. It comes with a $0 annual fee, making it an affordable option for individuals looking to manage their finances without additional costs. The variable APRs range from 25.24% to 34.74%, providing flexibility based on individual financial circumstances.
With credit limits ranging from $300 to $5,000, Petal 1 caters to a diverse range of spending needs. Users have the opportunity to earn a credit limit increase in as little as 6 months, subject to terms and conditions. For those without a traditional credit score, Petal offers the option to create a Cash Score, ensuring credit accessibility to a broader audience.
Petal 1 provides cash-back rewards of 2% to 10% at select merchants, encouraging responsible spending. Prospective users can check if they're pre-approved within minutes without impacting their credit score. The card comes with no annual or foreign transaction fees, contributing to its cost-effectiveness.
Petal 1 supports credit building by allowing users to build credit alongside hundreds of thousands of Petal card members. The mobile app simplifies money management, enabling users to track spending, automate payments, and access their financial information conveniently.
Petal 1 reports to all three major credit bureaus, aiding in the establishment and improvement of credit history. Unlike some secured credit cards, Petal 1 does not require any deposits, making it more accessible to users. Overall, Petal 1 strives to provide a comprehensive and accessible credit solution, promoting responsible credit management and financial empowerment.
Petal 1 Rise
Petal 1 Rise comes with a $59 annual fee, which cardholders should be aware of when considering its overall cost. The card doesn't charge foreign transaction fees, making it a convenient option for international use. However, users should be mindful of potential fees, including a late payment fee of up to $40 and a returned payment fee of up to $29.
One notable feature is the opportunity to earn up to 10% cash back when using the card for purchases with select merchants. This cash back incentive provides an additional benefit for cardholders. The ongoing Annual Percentage Rate (APR) for Petal 1 Rise is variable, ranging from 28.49% to 35.74%. The specific APR is contingent upon the individual's creditworthiness.
Regarding credit limits, Petal 1 Rise offers a range of up to $3,500, dependent on the cardholder's creditworthiness. It's essential for users to be aware of these features and terms to make informed decisions about whether Petal 1 Rise aligns with their financial goals and preferences.
Petal 2
Petal 2 is a fee-free credit card designed to provide users with a transparent and cost-effective financial experience. The card stands out by eliminating various fees, including late fees, foreign transaction fees, annual fees, and any other kinds of fees.
With variable Annual Percentage Rates (APRs) ranging from 18.24% to 32.24%, Petal 2 offers flexibility based on individual financial circumstances. The card provides cash back rewards, allowing users to earn 1% cash back on eligible purchases right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments. Additionally, there's an opportunity for 2% to 10% cash back at select merchants, providing an incentive for specific transactions.
Petal 2 offers credit limits ranging from $300 to $10,000, catering to a diverse range of spending needs. For individuals without a traditional credit score, Petal 2 provides the option to create a Cash Score, ensuring credit accessibility to a broader audience.
Prospective users can check for pre-approval within minutes without impacting their credit score, offering a convenient way to assess eligibility. Petal 2 also supports credit building by allowing users to build credit alongside hundreds of thousands of Petal card members.
With reporting to all three major credit bureaus, Petal 2 contributes to the establishment and enhancement of users' credit profiles. Importantly, the card doesn't require any deposits, making it accessible to a wide range of users seeking a fee-free and inclusive financial solution.
Other credit cards
- Best Credit Cards of September 2024
- 0% APR Credit Cards
- Cashback Credit Cards
- Low-Interest Credit Cards
Other Services Petal Offers
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AutoPay. Petal provides an AutoPay feature, allowing users to set up automatic payments for their Petal credit card. This helps ensure that payments are made on time, contributing to responsible credit management.
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Linking Your Bank Account to Petal. Users have the option to link their bank accounts to their Petal credit card. This facilitates seamless transactions and provides a centralized view of their financial activity.
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Subscription Tracking. Petal automatically highlights subscription services billed to the Petal card. This feature helps users stay informed about recurring charges, ensuring they are aware of their ongoing financial commitments.
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Insights Page. Petal's Insights page offers easy access to spend data. Users can check their card activity by various parameters, such as merchant, category, or month. This feature provides valuable insights into spending patterns and helps users manage their finances more effectively.
Conditions and Requirements
Conditions
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Credit Limit. Petal provides a credit limit that can go up to $10,000, offering users flexibility in their spending.
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Cash Back Rewards. Petal offers a tiered cash back rewards system. Users can earn 1% cash back on eligible purchases right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments. Additionally, there's an opportunity for 2% to 10% cash back at select merchants, providing an incentive for specific transactions.
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Membership Fee. While Petal typically does not charge a membership fee, there may be circumstances where users could be subject to an annual fee, potentially up to $59.
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APR (Annual Percentage Rate). The Annual Percentage Rate for Petal credit cards can go up to 35.74%, and the specific rate is variable. This rate is applied to any outstanding balance, representing the cost of borrowing on the card.
Requirements
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Valid Social Security Number or Individual Taxpayer Identification Number (ITIN). Applicants must possess a valid Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).
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Valid U.S. Telephone Number. A valid U.S. telephone number is required for communication and verification purposes during the application process.
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Valid Email Address. Applicants must have a valid email address to receive important communications and updates related to their Petal credit card.
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Age Requirement. Individuals must be 18 years old or older to apply for a Petal credit card. However, residents of Alabama or Nebraska need to be 19 years or older.
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Residence. Applicants must permanently live in one of the 50 United States, Washington, D.C., or a U.S. military location.
Network of ATMs
Petal's credit card does not have a specific network of ATMs for cash withdrawals, as the card is primarily designed for making payments and building credit. It's important to note that Petal explicitly states that ATM withdrawals, balance transfers, and the purchase of cryptocurrency or other similar virtual or digital currency are not allowed with their credit card.
Apps Like Petal
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Marcus by Goldman Sachs is an online banking platform offered by Goldman Sachs, providing personal loans, high-yield savings accounts, and certificates of deposit (CDs).
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Albert is a financial app that offers budgeting tools, savings recommendations, and a range of financial services. It aims to help users manage their money more effectively.
Editorial Opinion
Important
Methodology
At Finanso, we've carried out a comprehensive analysis of over 50 neo banks, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.
In each category, we carefully considered the most critical factors in selecting a neo bank. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.
At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.
Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.
Additional Resources
- Full Petal Account Review
- Petal Mobile App
- Petal Reviews
