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

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 either, is a match for you.

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.

Here’s how the two cards compare:

To qualify for either 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.

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, either Petal card is 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.