Petal Card Review – Building Credit Without The Fees


Petal Card Review – Does It Live Up To The Hype?

Petal Card Review

Innovative startups from Uber to Robinhood are changing the way we live.  The Petal Credit Card is attempting to bring radical change to the credit card industry.  After raising millions of dollars, Petal is now open to new applicants.  What makes this credit card unique is that they are changing the approval process to make more open to consumers, regardless of credit history.  Traditional credit cards use credit history to determine approval.  The Petal Credit Card changes the games by reviewing consumers overall finances to determine their creditworthiness.

When consumers apply with Petal they will find there is one very unique aspect to the application process – you will be providing your bank information.  The reason for this is simple; not everyone has sufficient credit history to otherwise get approval for a credit card.  Petal’s goal seems to be to provide a no-fee card to consumers who need it most.  Though Petal is still in its early stages we will take a look at what makes this card different and whether or not it is a great credit card option.

Petal Credit Card – A New Approval Approach

As mentioned earlier, credit card issuers have been using credit score and credit history to determine consumer approval.  There are many issues with this process but some of the most obvious include:

  • Not all consumers have sufficient history for approval
  • Consumers with poor credit have an extremely hard time improving their credit
  • Young individuals often do not meet standards for credit card approval
  • This approval review process has undergone very little change for decades

Given how fast everything is changing in our world, it stands to reason that it was time for an update to the credit approval process.  Petal is unique in that rather than solely relying on your credit history, they also review your banking, income, and spending information.  During the application process you will provide your active bank account information (by logging in with you online account access).  This will allow them to review details such as your income, bill payment history, and expenses.  Using these factors, Petal believes they can change the way consumers are approved for credit cards.

What Makes The Petal Card Different

The approval process for The Petal Card is only the beginning of what sets this card apart from others.  When most people think about credit cards for individuals with no credit history or poor credit history, they probably envision a “secured credit card”.  Secured Credit Cards require users to provide a deposit (typically several hundred dollars) as a form of collateral to back their account.  In the event of account default, the issuer of the card is protected due to this deposit.  Another annoying feature of secured credit cards is they often have unreasonably low limits making them nearly useless for many consumers.

The Petal Card is betting that their approval system will be able to select for consumers who will be able to responsibly use their credit card.  With this in mind, the credit limit for the Petal Card starts at $500 and goes as high as $10,000.  Even the low end of the limit is going to be double what most “intro credit cards” offer.  This will allow cardholders more purchasing power and provide them with a much better card than competitors.

Is the Petal Card Legit?

Yes! Check out Petal Card Reddit Reviews.

Also, Nerdwallet said the Petal Card is a good option for consumers who lack credit history and want to build one without putting down a security deposit.

The Petal Card – A Zero Fee Card

One of the most disturbing features of the credit card industry is that it is typically consumers with the worst credit who get treated the worst.  On one hand, this is understandable from a company perspective.  Issuing credit to high-risk individuals obviously puts a great deal of risk back on the issuing company.  At the same time, individuals with bad credit are typically the least able to pay for expensive fees.

Petal describes themselves the card as a “Credit Card With A Conscience”.  In many regards, this does appear to be the case.  Many intro cards require consumers to pay outrageous fees such as an application fee and a monthly service fee.  These same companies will also inflict massive penalties when payments are missed or other terms are not followed.  For consumers who may already have some financial strain, these fees can be devastating.

The Petal Card has no annual fee, no late payment fee, no international fees, and no overdraft fees.  For someone who may already have some financial headaches in their past, this is going to be a huge benefit.

Building (Or Rebuilding) Your Credit With Petal

One of the primary reasons people will be seeking the Petal Card is because it allows for a chance to build or rebuild your credit.  One of the biggest factors in your credit score is your credit history.  This includes past credit behavior such as on-time payment, length of credit history, age of your accounts, and your account use.  The challenge many individuals face is that they are unable to build their credit history because they are not eligible for credit approvals.  Rather than turn to expensive secured cards, Petal is hoping they can draw this audience with their new product.

When you use your Petal Card it will work just like any other credit card as far as your credit history is concerned.  Using your card and making your payments will be reported to the three credit bureaus – Experian, TransUnion, and Equifax.  Your total credit limit used will also be reflected in your credit report.  Total credit utilization is another big factor that goes into your score so if you are able to keep your usage low, or better yet, pay off your balance in full each statement, you will be much better offer.  Some simple tips to get the most out of your Petal Card in a quest to build or rebuild credit:

  • Try to minimize credit utilization (your balance divided by total credit limit for your Petal Card)
  • Always pay your bill on time to avoid late or delinquent payments
  • Use your card regularly so that you are actively making use of your credit
  • Attempt to pay off the entire balance on your Petal Card each billing statement when possible

Petal Card Fees, Interest Rates, and Credit Limit

Some intro credit cards designed for low credit individuals inflict near predatory terms.  This is where the Petal Card really excels.  The rates, fees, and credit limit reflect that of credit cards that are generally reserved for people with much better credit.  Expected fees, rates, and limits are advertised as the following:

  • Credit Limit of $500 up to $10,000
  • Annual Percentage Rate from 14.99% – 25.99%
  • No annual fee, no service fees, no late payment fees

Your credit limit will be based on the basis of your credit and finance review.  Keep in mind that while poor credit history can still result in approval, you may have lower credit limits or higher interest rates.  Interest rates are also based on the current US Prime interest rate.  The zero fee card is going to be the biggest draw.  This blows much of the competition out of the water.

Applying For a Petal Credit Card

For consumers who are interested in applying for the Petal Credit Card applications are now open and can be completed online (  Following the Apply Now link on the homepage will bring you to the application form:

The top bar above the field input will show you the overall progress of the information you are submitting.  Basic information will be required including your name, email address, phone number, address, and rent information.  You will also verify your identity with your social security number and provide your bank account information.  Once you have submitted all of the required information Petal will review your details.  A credit decision will be made and will reflect in your credit limit and interest rate.

Cons Of The Petal Credit Card

The only drawback that jumps out about the Petal Credit Card is a lack of a rewards system.  Unlike some other cards that provide cash back or travel rewards, the Petal Card does not currently have a system for this.  There is some talk of future reward systems being put in place but at the moment cardholders will not earn rewards for using this card.  This is going to come as a minor drawback for most people interested in this card.  Most applying will be more in need of the approval odds rather than rewards.

Final Thoughts – The Petal Card Review

For consumers who are looking for a low fee credit card and trying to rebuild credit, The Petal Card is going to be a top pick.  If you are not interested in rewards and your primary interest is a card without penalties this would be another reason to consider Petal.  For consumers with good credit who like to earn rewards with their purchases, there may be better credit card options.

If you are going to apply for this card it will be best to make sure that your banking and finances are in best order as possible as this will be part of the review criteria.  For readers who have been approved for this card, please let us know what you think in the comments below!  We are excited to hear what consumers think about this card.  Currently, due to it being so new, there are not a ton of reviews available so be sure to let us know your experience!

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Elizabeth Weintraub
Elizabeth Weintraub is a former writer for The Balance. She has an extensive background in real estate spanning more than 40 years, including experience in related industries such as title and escrow. Weintruab began in the real estate business in 1974 as a title searcher at First American Title in Boulder, Colorado. After moving to Newport Beach, California, she became an escrow officer in 1976 and advanced to certified status as designated by the California Escrow Association.