Are Petal Cards Legit?

Yes, both of the Petal cards are legitimate tools for making payments and building credit. But the one that's right for you will hinge on your creditworthiness and cash flow.
Melissa LambarenaOct 22, 2021

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Petal is a fintech company behind two credit cards, both issued by WebBank: the Petal® 1 "No Annual Fee" Visa® Credit Card and the Petal® 2 "Cash Back, No Fees" Visa® Credit Card. Both cards are legitimate payment methods and credit-building options that report payments to all three major credit bureaus.

The Petal® 1 "No Annual Fee" Visa® Credit Card, as you would assume, carries no annual fee, but you can incur other fees with it. The card earns rewards on purchases made with select merchants.

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card doesn't charge fees of any kind, and it earns up to 1.5% cash back on all eligible purchases with qualifying on-time payments, as well as elevated rewards at select merchants. The ongoing APR is 12.99% - 26.99% Variable APR.

The card that's suitable for you depends on your creditworthiness and cash flow.

Get to know more about Petal and its credit cards with the answers to these frequently asked questions.

What is Petal?

Petal is a financial technology company based in New York and Virginia. In partnership with WebBank — an FDIC-insured, state-chartered industrial bank based in Utah — the company offers the Petal® 1 "No Annual Fee" Visa® Credit Card and the Petal® 2 "Cash Back, No Fees" Visa® Credit Card. WebBank is the issuer of both Petal cards.

Are the Petal cards actual credit cards?

Yes, the Petal cards are actual credit cards.

When did the cards come out?

Though it seems counterintuitive, the first card that was launched was actually the Petal® 2 "Cash Back, No Fees" Visa® Credit Card, in October 2018. However, at the time it was called the Petal Visa. It was rebranded when the company launched its second card, the Petal® 1 "No Annual Fee" Visa® Credit Card, in October 2020.

What's the difference between the 2 Petal cards?

The Petal cards have different target audiences, rewards structures, fees, credit limits and interest rates. But here are the standout differences:

  • The Petal® 1 "No Annual Fee" Visa® Credit Card: Earn up to 10% cash back when you shop with certain merchants. You can be charged fees.

  • The Petal® 2 "Cash Back, No Fees" Visa® Credit Card: Earn up to 10% back when you shop with certain merchants and up to 1.5% back on all other qualifying purchases, depending on your on-time payments. You won't be charged any fees.

What makes the Petal cards different from traditional credit cards?

Petal has an algorithm that analyzes banking history to evaluate income, savings and spending to determine eligibility. As a result, Petal cards don't require a credit history, a security deposit or other requirements that beginners to credit encounter with traditional credit cards. Other requirements for eligibility include being at least 18 years old, U.S. legal residence status, a Social Security number or Individual Taxpayer Identification Number and the ability to make payments from a U.S. bank account.

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card stands apart from traditional cards even further as it doesn't charge any fees.

See how it compares with NerdWallet's best credit card offers, both traditional and alternative.

Are the Petal cards good credit cards?

Yes, the Petal® 1 "No Annual Fee" Visa® Credit Card and the Petal® 2 "Cash Back, No Fees" Visa® Credit Card are both good options for those with less-than-ideal credit and those who are beginners to credit. They offer decent rewards rates compared with cards in their class. And the Petal® 2 "Cash Back, No Fees" Visa® Credit Card even made NerdWallet’s list of best starter cards.

What credit score is needed to qualify for the Petal credit cards?

The credit score requirement varies for the Petal® 1 "No Annual Fee" Visa® Credit Card and the Petal® 2 "Cash Back, No Fees" Visa® Credit Card. You can find out if you qualify for either option with no impact to your credit score when you apply through the pre-qualification process.

The Petal cards are issued by WebBank, Member FDIC.

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