Petal 1 Visa credit card review: Earn up to 10% cash back at select merchants, and you don't need a credit history to qualify

Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

The Petal® 1 "No Annual Fee" Visa® Credit Card is an option for those looking to build their credit history. It's closely paired with the Petal app to help folks set monthly budgets, find available cash-back deals, and make on-time payments. However, if you've already established good credit, this isn't the card for you. 

Review: Is the Petal 1 Visa credit card the best card for you?

The Petal® 1 "No Annual Fee" Visa® Credit Card issued by WebBank, Member FDIC, is designed for those with bad, limited, or even no credit history. Like most credit cards for bad credit, it doesn't provide a welcome bonus offer or introductory APR. 

The card earns up to 10% cash back, but only at select merchants, so cardholders will need to keep track of eligible merchants through the Petal app in order to earn rewards when they spend. You won't earn any rewards on other purchases. Plus, rewards rates vary based on the merchant, which is a downside if you're looking for a consistent return on your spending. 

The regular APR rate is Petal® 1 "No Annual Fee" Visa® Credit Card, so it's not a good choice if you're planning to carry a balance or looking for a low-interest credit card.

That said, what makes this card appealing is that those with bad or no credit can qualify. If you don't have a credit score, Petal can review your banking history and create a "Cash Score" to determine your creditworthiness. Similarly, unlike secured cards which are also geared to those with bad credit, you don't have to put down a security deposit. Instead, you can save your money and focus on building your credit. You can also see which Petal card is best for you without impacting your credit score. 

Upon approval for the Petal® 1 "No Annual Fee" Visa® Credit Card, cardmembers are eligible for the Petal's Leap program, designed to teach members how to be financially aware and responsible. You'll receive a starting credit limit of up to $5,000 (based on past credit history — if you have any), which is significantly higher than most other starter credit cards like the Discover it® Secured Credit Card, which has a max credit limit of $2,500. 

You can also qualify for a credit limit increase in as little as six months, but only after completing two goals:

• You must pay your minimum payment or 15% of your monthly statement balance (whichever is greater) on time for six consecutive billing cycles (Petal calls this a "payment streak")
• You must not let your VantageScore drop 50 or more points below your Leap credit score goal (also for six consecutive billing cycles). If you don't have a VantageScore, you'll still be able to progress toward completing the second goal. Your VantageScore can be added to your Leap dashboard within three months of regular payments.

That said, the current Petal policy only provides a credit limit increase once under the Leap program.  

The Petal® 1 "No Annual Fee" Visa® Credit Card has decent redemption options, but limited benefits. If you want a starter credit card with more benefits, the Discover it® Secured Credit Card has more perks like cash back on all purchases (not just select merchants). Discover will also match all the cash back you've earned after your first year.

Another great starter card is the Capital One QuicksilverOne Cash Rewards Credit Card which earns cardholders 5% cash back on hotels and rental cars booked through Capital One Travel, and 1.5% cash back on all other purchases. The card doesn't charge foreign transaction fees, but there's a Capital One QuicksilverOne Cash Rewards Credit Card annual fee. 

We're focused here on the rewards and perks that come with each card. These cards won't be worth it if you're paying interest or late fees. When using a credit card, it's important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

How to earn rewards with Petal 1 Visa credit card

The Petal® 1 "No Annual Fee" Visa® Credit Card earns up to 10% cash back (called Petal Offers or Merchant Offers) with no cap, but only at qualifying merchants — not all purchases are eligible for rewards. Merchant Offers will automatically be loaded to your account, and earned rewards should be added to your Cash Back Wallet during your next billing cycle. 

Unfortunately, finding which merchants are eligible for rewards can be a hassle as the only way to access the participating merchant list is through the Petal app, meaning that unless you already have a Petal card you won't know what you're signing up for. If you do have a Petal card, you can find the current list of participating merchants on the Perks page of your Petal account either online or in the app. 

Petal is partnered with Dosh, a third-party provider, for discounts, credits, and other services related to Petal Offers. Dosh currently partners with over 10,000 brands (like Walmart, Instacart, Pizza Hut, and Disney+), but which of these partners applies to the Petal® 1 "No Annual Fee" Visa® Credit Card is not clear. This, combined with the fact the Petal site is hard to navigate, makes it significantly difficult for folks to assess whether or not the card is worth it based on their spending habits.

How to use Petal 1 credit card rewards

Your rewards are redeemable once they pop up in your Cash Back Wallet. You can redeem rewards as a statement credit up to your current balance with no minimum redemption requirement. 

On the Perks page you can access your Cash Back Wallet, Lifetime Cash Back, Pending Cash Back, and Active Cash Back rewards. To redeem as a statement credit, go to the Perks page under your Petal account and click "redeem" to enter your desired amount.   

To redeem your cash back as an ACH transfer or check, you have to contact Petal Support by calling the number on the back of your card. You can only request an ACH transfer or check in cash back equal to $20 or more. 

Keep in mind, that if your account is ever demoted from Good Standing, regardless of the reason, you'll be unable to redeem rewards. Also, rewards are non-transferable and can only be redeemed by the account holder.

Petal 1 Visa card benefits and features

The Petal mobile app

One of the most substantial features of the Petal® 1 "No Annual Fee" Visa® Credit Card is the Petal App which gives you access to your Petal account information all in one place. You can view your account balance, statement balance, and available credit right in the app. You can also pay your monthly balance, keep track of your credit score, and set budgets to help develop smarter spending habits. In addition, the app can track any subscription services charged to your card. 

No foreign transaction fees

You won't get charged any foreign transaction fees when you use the Petal® 1 "No Annual Fee" Visa® Credit Card outside of the US, which makes it a solid option for traveling. 

AutoPay

You can turn on the AutoPay feature in the app to automatically pay your minimum amount due every month so you'll never miss a payment. This feature is especially handy if you have a lot on your plate or need help remembering their monthly due dates. 

Lost or stolen card liability

You won't be held liable for any unauthorized use of lost or stolen cards if you call 855-697-3825 to notify Petal. You may still be liable for unauthorized use occurring before Petal is notified. 

Petal 1 credit card fees and costs

The Petal® 1 "No Annual Fee" Visa® Credit Card has no annual fee or foreign transaction fees. It does have a late payment fee of up to $40 and returned payment fee. 

There are no fees for cash advances or balance transfers because the card doesn't offer these features.

Comparison: Petal 1 Visa vs other starter credit cards

Petal 1 Visa vs other cash-back credit cards

Petal 1 Visa frequently asked questions (FAQ)

Is Petal 1 Visa credit card worth it? 

The Petal® 1 "No Annual Fee" Visa® Credit Card is worth considering for folks with bad, limited, or no credit looking for a no-annual-fee card to build their credit history. But the Petal® 1 "No Annual Fee" Visa® Credit Card doesn't come with many benefits or features. While it offers up to 10% cash back, that's only at select merchants, and there's no welcome bonus offer or intro APR deal. 

If you're new to the credit world and looking for a starter card, there are other beginner credit cards (some also offering better reward opportunities) that might be more beneficial. But if you already have an established credit history, one of the cards for fair or limited credit might suit you better with additional card benefits and features. 

Where is the Petal 1 Visa card accepted?

The Petal® 1 "No Annual Fee" Visa® Credit Card is accepted anywhere that Visa is accepted both in the US and internationally (with no foreign transaction fees). You can use the Petal® 1 "No Annual Fee" Visa® Credit Card for in-person transactions and online. 

You can't use Petal cards to purchase digital currencies, such as bitcoin, or for balance transfers. You also can't withdraw cash at ATMs using the Petal® 1 "No Annual Fee" Visa® Credit Card. 

When will fees show up on your Petal account?

If you are charged a late payment fee or a returned payment fee, it will appear in your activity feed and on your next statement after assessment.