Petal 1 vs. Petal 2: Which Is Right for You?

The right Petal card for you will depend on your credit history or cash flow.
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Written by Melissa Lambarena
Senior Writer
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Edited by Erin Hurd
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The financial technology company Petal — with its issuing partner, WebBank — offers a trio of credit card products:

These cards are ideal for those who lack the credit history to qualify for a traditional credit card. Petal has an algorithm that can analyze banking history to evaluate income, savings and spending, beyond the traditional FICO credit history.

The right Petal card depends on your credit history or cash flow. Petal’s pre-qualification process will confirm which option, if any, is a match for you.

🤓Nerdy Tip

In May and June of 2023, some holders of the Petal® 1 "No Annual Fee" Visa® Credit Card and the Petal® 2 "Cash Back, No Fees" Visa® Credit Card were notified that the terms of their accounts would be changing. Some Petal 1 cardholders were told they would start being charged a monthly membership fee of $8. Some Petal 2 cardholders, meanwhile, were told they would be shifted to a variation of the Petal® 1 Rise Visa® Credit Card, also with an $8 monthly fee but with the same cash-back rewards as the Petal 2. Petal indicated on its website that these changes applied only to select existing cardholders and not new accounts.

How the Petal cards compare

The Petal® 1 "No Annual Fee" Visa® Credit Card is for those with less-than-perfect credit or cash flow who have goals to improve their credit scores. Unlike its sibling, this card charges fees if you incur them and it earns fewer incentives on purchases. It's one of NerdWallet's best credit cards for fair credit.

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card is for people with a better credit score or a stronger cash flow. Like the name suggests, this card doesn’t charge any fees — even late fees — and is a solid option if you want that added safety net. It also offers more ongoing incentives for purchases and on-time payments.

There's a third card, the Petal® 1 Rise Visa® Credit Card , for those who cannot qualify for either. When you apply for a Petal card, you're considered for all three cards and are offered terms for the one you qualify for. Here's how the cards compare:

Petal® 1 "No Annual Fee" Visa® Credit Card

Petal® 2 "Cash Back, No Fees" Visa® Credit Card

Security deposit

None.

None.

None.

Fees

  • A $59 annual fee.

  • No foreign transaction fees.

  • A late payment fee of up to $40 if incurred.

  • A returned payment fee of up to $29 if incurred.

(Card fees and terms may vary for members acquired prior to May 16, 2023.)

  • A $0 annual fee.

  • No foreign transaction fees.

  • A late payment fee of up to $40 if incurred.

  • A returned payment fee of $29 if incurred.

(Card fees and terms may vary for members acquired prior to May 16, 2023.)

None. (Card fees and terms may vary for members acquired prior to May 16, 2023.)

Sign-up bonus

None.

None.

None.

Rewards

Up to 10% cash back when you use the card to make purchases with select merchants.

Up to 10% cash back when you use the card to make purchases with select merchants.

  • Up to 1.5% cash back on all eligible purchases after making 12 on-time monthly payments.

  • Up to 10% cash back when you use the card to make purchases with select merchants.

APR

The ongoing APR is 28.49%-35.74% Variable.

The ongoing APR is 25.24%-34.74% Variable APR.

The ongoing APR is 18.24%-32.24% Variable APR.

To qualify for any Petal card, you must be at least 18 years old, have legal U.S. residence status, provide a Social Security number or Individual Taxpayer Identification Number, and be able to pay the bill from a U.S. bank account.

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Is a Petal card right for you?

With good to excellent credit (a credit score of 690 or higher) you may qualify for a cash-back credit card that can offer more long-term value. But if you value skipping fees, the Petal® 2 "Cash Back, No Fees" Visa® Credit Card is still a good option.

If you have less-than-ideal credit, a Petal card can be a decent pick to put your credit-building goals on track. Applying to pre-qualify for a Petal card won’t hurt your credit score, and it’ll help you better gauge your odds of approval. If you do pre-qualify and then officially apply for a Petal card, a hard inquiry will appear on your credit report; this can temporarily impact credit scores. (This outcome is typical with most credit card applications.)

If you're not eligible for a Petal card, you still have other options for unlocking the door to credit. Some cards are easier to get, such as those that require a security deposit or those that don’t allow ongoing balances from one month to another. Explore your options and choose the card that best aligns with your income, credit history and spending habits.

Petal cards are issued by WebBank, Member FDIC.

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