The Petal Visa Credit Card is an unsecured credit card that offers a credit limit ranging from $500 to $10,000. Its upper limit is particularly attractive because it is generally associated with more premium secured credit cards.
Credit cards have since become a reality, in the United States, North America and increasingly in other parts of the world. People own credit cards for different reasons and also have different categories of credit cards to choose from depending on their financial needs.
Yet there’s no debate about the love affair between first world denizens and their favorite piece of plastic.
According to Shift, there are approximately 1.06 billion credit cards used in the United States alone. Worldwide, this represents approximately 2.8 billion credit cards in use worldwide.
At least 70 percent of Americans use a credit card, with 34 percent of them using at least 3 cards and 14 percent having up to 10 credit cards. That’s a lot of credit cards.
It’s one thing to own a credit card, and another to discuss how Americans spend with it.
According to NerdWallet, credit card debt in the United States stood at $1.04 trillion as of December 2019. To put that in context, this figure is nearly four times the combined defense budgets of Russia and China.
Okay, enough about credit card statistics. Now you get it: Americans love their credit cards. But not all credit cards are the same. And Americans are at different stages of their financial journey, so this makes sense for everyone.
What category of people is the Petal Visa credit card aimed at? This card is ideal for those who are still at the beginning of their financial journey and, therefore, have not built up any credit history.
Petal credit card
Petal’s success appears to have happened quickly, especially since the credit card industry faces very stiff competition. But this success is entirely due to their targeting.
Founded in the United States in 2018, the financial technology company managed to raise $34 million in October of the same year.
According to the company, it now has over 50,000 cardholders in just a year and a half of existence (as of March 2020).
Petal Visa Card specifically targets consumers looking to build their credit history. Be careful, build and not rebuild. If you have a damaged credit history and are looking for an opportunity to rebuild it, the Petal Visa card is not for you.
This card also has an enviable credit limit and rewards responsible spending while offering cash back rewards of up to 1.5%.
There are other things that come with being a Petal Visa credit card holder. One of them is a smartphone app that comes with a spending planner.
Cardholders enter their budget into the app, making it easy to keep tabs on their spending versus their budget.
Petal Credit Card – Features and Benefits
An overview of the benefits of getting a Petal Visa card:
1. Petal Visa has attractive credit limits for an unsecured card
The Petal Visa card’s high credit limit is not typical of cards aimed at people with little or no credit.
The upper limit of $10,000 mirrors that of secured cards with the highest limits which typically list this amount as a prerequisite for security deposit.
Other unsecured cards in this same category as Petal’s offer usually have their credit limit starting at around $300 and going up to $1,000.
But Petal’s high credit limit, coupled with the fact that no security deposit is required, makes it an enticing option.
Of course, this doesn’t mean you’re guaranteed to get that maximum limit when you apply for the card or even get the card.
Petal claims to use “intelligent algorithms” that analyze a range of personal data beyond credit score to determine who qualifies for the card.
2. Petal Visa does not incur any fees
One of the main ways credit card providers make money is through credit card fees. And there are many types of fees: annual fees, foreign transaction fees, late payment fees, fees for adding an authorized user and more.
The Petal Visa credit card is a real no-fee credit card because there is absolutely no cost. This can save you hundreds of dollars per year compared to using any other credit card.
3. Petal Visa offers you cashback rewards
This isn’t common with many startup cards, but Petal is going against the grain by offering cashback rewards, albeit in a tiered structure.
So when you first get your credit card, you get 1% cash back on all your credit card purchases. This rate increases to 1.25% if you make your card payments on time during the first 6 months.
Keep payments on time for another six months and your reward rate becomes 1.5%, which is the maximum rate. Your rewards have no expiration date as long as you continue to make your payments on time.
Your Petal Visa card rewards can be collected as a mailed check for $20 or more or as statement credits.
4. It’s harder to get approved for a Petal Visa card than a secured card
Some secured cards will approve people with damaged credit as long as they can come up with the money needed for the security deposit.
Since the Petal Visa credit card does not require a security deposit, it is much more difficult to get approved for this card, even if you have decent credit.
Having a good credit score is only a small part of the personal data Petal evaluates before approving or disapproving a potential cardholder. The entry bar is therefore relatively high.
5. The annual percentage rate (APR) is not the lowest
On his website, Petal is quick to reference a report from Credit Karma that compares his credit card’s APR to that of Capital One Platinum and Discover It.
Petal has been shown to have the lowest APR of the three: 12.99% to 23.99%.
While this is a good start, there are a few other starter cards on the market that have smaller APRs.
Additionally, you will find credit card providers open to APR adjustment if you call and ask. Petal is not accepting adjustments at this time.
However, you need to remember the trade-off here: many of these cards will require decent to excellent credit, while Petal doesn’t care about your low or no credit score.
6. The spending planner could be better
While the expense planning app that comes with Petal’s credit card is a good idea, it could be better. The app is designed to help you keep tabs on your spending based on your budget.
However, not everyone has the time or patience to constantly check the app to see how much you’ve spent.
Petal’s spending planner can’t set a spending limit, a feature that would have been useful. And with their credit limits higher than most cardholders, they can easily go over budget without even knowing it.
Petal Visa Card – Additional Benefits
-
You can earn Uber credits when you make purchases with this card at any of the more than 1,000 restaurants, cafes, and retailers listed by Visa Local Offers. Your credit card must already be listed in your Uber account to qualify for Uber credits.
-
The Petal Visa credit card is also compatible for transactions on ApplePay
-
If you pay for a car rental with your card and decline the rental company’s insurance coverage, Petal offers free car rental insurance coverage for you.
-
With a Petal Visa card, you don’t have to pay an annual fee or pre-register for emergency road dispatch services. When you’re stuck on the road, be sure to call dispatch services at 1-800-847-2869 any time of the day and pay for their services with your Petal Visa card.
Conclusion
It’s immediately clear that Petal’s Visa card offering is as unique as it gets. Building a strong customer base comprised primarily of people with little to no credit history is an impressive feat. And they do well to answer critical questions about their business and services comprehensively. on their FAQ pageso there you go.
All of its perks – cash back, high credit limits, over-the-road shipping, car rental insurance – certainly make it a great starter card. Yet you must remember that it is just that: a starting card.
You’ll eventually want to move up in the world, and when you’ve built up a sufficiently strong credit score and history – of course keeping your credit utilization in mind – you may want to consider switching to a more conventional and robust credit card.
If you like the content you just read and find it helpful, do me a favor and share this article on social media and help spread the word. Also let me know your thoughts and comments in the comment box below. Thanks for reading!
