When you have “fair” or “average” credit, the search for a new card can feel like walking through a minefield. Just when everything seems safe, you might be faced with extremely high fees or an exorbitant interest rate – or simply be turned down for what seemed like a good card for you.
The folks behind the Petal are trying to fix this problem. They’re offering a new type of credit card for people with average credit, but that doesn’t charge any fees and even offers solid cash back.
Petal® 2 Cash Back Visa® Card: Key Terms
- Awards: 1% cash back on all purchases, increasing to 1.50% after 12 months of on-time payments
- Annual fees: Nothing
- APR: 12.99% – 26.99% Variable APR
How the petal card works
Applying for a card and being refused can hurt your credit score, the Petal Card therefore offers a pre-approval process to avoid causing damage. Potential applicants fill in some information and Petal performs a “soft pull” to their credit, which does not affect your credit score. Then you will be told if you are likely to be approved or not before you officially apply. Petal specifically states that their card is a great choice for people new to credit and that no credit is required to apply. That’s because Petal looks beyond your credit score during its application process.
Once approved, you’ll receive a card with no annual fees, no late fees, and no foreign transaction fees. You’ll start out earning 1% cash back on all purchases, but this will drop to 1.5% after you’ve made 12 consecutive monthly payments on time. The standard interest rate is 12.99% – 26.99% variable APR, depending on your credit history.
Petal® 2 Cash Back Visa® Card Review: Benefits
It’s one of the few cards that has no fees, which is great for people who love simplicity and really hate credit card fees and “gotchas”. Its graduated cashback program is also a nice incentive to make payments on time while earning competitive rewards like your credit improves. Yet another advantage: you don’t need excellent or even “good” credit to be approved.
Petal® 2 Cash Back Visa® Card Review: Cons
The standard interest rate can be as high as 26.99% APR, which is very high. Still, that’s what you should expect from any card if you’ve had credit issues in the past. In addition, this card does not allow you to change the due date of your payment, which almost all other cards offer.
Alternatives: good cards if you have average credit
Capital One Quicksilver One. This is another card available for those with average credit and it also offers rewards. You earn 1.5% cash back on all purchases, with no limit. However, it has an annual fee of $39.
Capital One Platinum. Like the Quicksilver, this card is a good basic option available to people with average credit. However, this card does not offer any rewards, although it also has no annual fee.
The Petal 2 Cash Back Visa Card is a unique card for those with average credit. By offering rewards and having no fees, it’s worth considering when you want to earn money as you build credit.