Petal 1 Visa Credit Card Review

Petal Card, Inc. (or Petal for short) is a fintech company, not a bank. It was founded in 2016 in New York City. Since Petal is not a bank, it does not offer credit cards. Rather, it provides the servicing platform and interface for customers. All card underwriting and issuing is done by WebBank, Member FDIC.

What is WebBank?

The Petal 1 Visa Credit Card is a standout product for those with subpar credit. While it lacks the name recognition of a bank like Capital One, Petal makes up for it with a solid product for its audience. 

The APR, or interest rate, is a good place to start your review. If you will be carrying a balance, the cost associated with carrying debt month to month is a good indicator of whether a product is right for you. Even at the low end of the rate offered on the Petal 1 Visa, the rate is quite high. However, it is lower than many competitors in the space. Some competing cards can get to charge more than 35% interest. 

Other fees are competitive, too. Cards for those with damaged credit tend to have an annual fee that ranges anywhere from $35 to more than $100. Not with Petal - the Petal 1 Visa does not charge an annual fee.

The Petal 1 card also forgoes the foreign transaction fee, which means you won't be charged more for using your card while traveling internationally. A nice plus if you have travel in your future. The standard rate for a foreign transaction fee otherwise is around 3%. 

Does Petal 1 Offer Rewards?

Yes! This is another pleasant perk. While cardholders are very unlikely to earn rewards on all purchases, they will earn between 2% - 10% back in rewards at select merchants. While rewards are common on credit cards for those with good to excellent credit, they can be more of a rarity on cards for those that are building their credit. 

Don't rush out and get a credit card because of the rewards it offers, though. If you are going to be carrying a balance month to month, any potential rewards will quickly be eaten up by the interest rates you'll be paying.  Chances are, you're reading this review because you've got some financial planning to do. Don't undo your hard work by chasing rewards.

Credit card issuers review a number of factors when you apply for a credit card. Credit score receives the most attention, but it's not all the banks look at. A bank will also look at your ability to pay back debt, and your existing relationship with other banks. There's no one magic score to get you approved.

With that being said, if you submit an application for a Petal 1 Visa, you may be asked to connect your bank account via Plaid as part of the application. This is a secure way to allow your banking history to be reviewed as part of your application process. If your account is connected, a "Cash Score" is generated for you, which can be the difference between approval and rejection if your credit profile is too thin or has some black marks on it. 

Can I Get Prequalified for the Petal 1 Visa?

We're glad you asked. You can go through the preapproval process! It's actually the best way to see if you may be eligible for an offer. By submitting a prequalification request, your information will be reviewed to determine if you are a good match for the Petal 1 or Petal 2 card. Depending on your situation, you may be asked to connect your checking account so that a Cash Score may be generated for you. If you're prequalified, you'll be able to review the offer you may receive and submit an application at that time.

Remember, being prequalified doesn't mean you'll be approved for an offer. It's an indicator that you're a good fit, but the issuer hasn't reviewed your full credit profile at this point. Once you apply, the issuer will conduct a full review and make a determination on your application. 

Petal 1 Visa Reddit Reviews

The available Reddit reviews for Petal 1 skew positive. Many users recommend competing cards for students, like a Capital One offer that earns consistent rewards. If you're a student with a light credit profile, this is sage advice. However, the Petal 1 Visa is designed for those with damaged credit. It's true that there are cards out there that earn more consistent rewards, however, with damaged credit this is truly one of the best of the best if you're able to qualify.

Petal 1 Visa BBB Reviews

Petal is not BBB accredited, but there are some reviews present on the site. Many involve confusion around a third party website and that website's prequalification process. The level of complaints is low (around 1 a month for a large company), so we do not find this concerning for someone interested in the product. 

Conclusion

The online complaints about the Petal product are fairly limited in scope. They either refer to getting a better card if you are a student (which is fair and accurate), or confuse the display on a third party website with getting approved for the offer. While we think financial matters should be clear and free of any potential confusion, we don't chalk those issues up to Petal in this case. If you are in a position where you are building your credit, the general lack of complaints around customer support, interface and user experience make us think that the overall general consumer experience is positive. 

If you're still considering the card at this point, there's a good chance it's worth at least going through the prequalification process. Once you have an idea of whether you'll likely be approved for an offer, you can make a more firm decision on whether that offer is right for you.

If you are matched to either of the Petal offers, Petal 2 is another strong offering.  The card offers a higher maximum credit line, but also comes with more robust rewards earning opportunities. If you are matched to Petal 2, it's still a solid option for an individual that is new to credit. 

The Petal 1 Visa card does things many major bank cards don't - it offers a no annual fee product with a comparatively reasonable APR, smooth interface, some rewards, and an easy prequalification process. Is it for everyone? No. If you have a strong credit profile, a card with more consistent rewards might be a better fit for your spending habits