Petal 1 Rise Review: Build Credit for a Relatively Modest Fee
The Bottom Line
2.6
The annual fee is lower than you’ll find on some other unsecured credit-builder cards, but you can also find plenty of alternatives that skip the annual cost and offer better incentives.
Annual fee
$59
Rewards rate
2%-10%
Bonus offer
None
Intro APR
N/A
Ongoing APR
APR: 28.49%-35.74% Variable
Foreign transaction fee
0%
- No security deposit required
- 2%-10% cash back at select local and national merchants
- See if you’re pre-approved in minutes without impacting your credit score.
- No Credit Score? No problem. Credit history isn’t required for approval
- Get an automatic credit limit increase after 6 qualifying on time monthly payments. Terms apply
- Build credit alongside hundreds of thousands of Petal card members
- Petal reports to all 3 major credit bureaus
- Pay with ease with a contactless card or on your phone using Apple Pay, Google Pay, or Samsung Pay
- Zero liability fraud coverage
- Card issued by WebBank
Detailed Review
The Petal® 1 Rise Visa® Credit Card, issued by WebBank, is one of three credit cards in Petal’s portfolio, and the only one that lists an annual fee on the company's website. It’s typically reserved as an option for those with low to fair credit or cash flow. The terms for the Petal® 1 Rise Visa® Credit Card can also vary for certain cardholders. (See the tips box below.)
While its potential for modest rewards and its decent credit limit may be alluring, the $59 annual fee can become one of many thorns on this card. Other credit cards that build credit can keep costs lower.
While any credit card can adjust its rewards, benefits and fee structure at any time, newer cards from startup financial technology companies are particularly prone to significant changes as they find their place in the market. For example, in June 2023, select holders of the Petal® 2 Visa® Credit Card — a card typically reserved for those with average to excellent credit — were downgraded to a version of the Petal® 1 Rise Visa® Credit Card with an $8 monthly fee ($96 annually), instead of its typical $59 annual fee. As of May 2024, Petal was also acquired by Empower, a financial technology company.
Petal® 1 Rise Visa® Credit Card: Key features
Card type: Credit builder.
Annual fee: $59.
Sign-up bonus: None.
Rewards: 2% to 10% cash back at select local and national merchants.
APR: The ongoing APR is 28.49%-35.74% Variable.
Foreign transaction fee: None.
Benefits and Perks
A pre-qualification process
It's not possible to directly apply for the Petal® 1 Rise Visa® Credit Card on the website. When you submit an application, you’re funneled through a pre-qualification process where you’re considered for all three Petal cards. Here's how they stack up:
Empty Table Header | Petal® 1 Rise Visa® Credit Card | Petal® 1 Visa® Credit Card | Petal® 2 Visa® Credit Card |
|---|---|---|---|
Security deposit | None. | None. | None. |
Fees |
(Card fees and terms may vary for members acquired prior to May 16, 2023.) |
(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. |
|
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. |
The pre-qualification process can be helpful because it allows you to understand your odds of approval for a card without an initial hard inquiry and thus has no impact on your credit scores. You can also link your bank account via Plaid to see whether you can qualify for any of these offers.
You'll be given an offer based on the card you're eligible for, and if you accept and submit an official application, then the issuer will pull your credit. If you can't qualify for a Petal card, you may be invited to view other options through Empower, the company that acquired Petal. Options you may be referred to include Empower’s Cash Advance or Thrive Line of Credit.
A potential credit limit increase
Petal’s Leap program offers the possibility of getting a credit limit increase in six months if you make on-time payments and qualify. Terms apply. Note that this path may not be feasible if the issuer decides to again change its terms (see above), and you may be able to find a similar or better benefit from more established cards.
For example, the $0-annual-fee Capital One Platinum Secured Credit Card can offer a lower security deposit for those who qualify. (The deposit may be $49, $99 or $200 for a credit limit of $200.) You’ll also be considered for a higher credit limit in six months without having to deposit more money, and with a history of on-time payments, there's the potential to upgrade to an unsecured credit card with the same issuer. If you have fair credit, the $0-annual-fee Capital One Platinum Credit Card can offer a similar credit limit increase, and it doesn’t require a security deposit.
Drawbacks and Considerations
A $59 annual fee
Among credit cards designed for bolstering credit, the $59-annual-fee Petal® 1 Rise Visa® Credit Card isn’t the most expensive one, but it’s also not the most affordable either. It's certainly superior to many "fee-harvester" credit cards — typically unsecured cards for bad credit that feature a laundry list of costs like monthly maintenance fees, processing fees, activation fees and more.
But the Petal® 1 Rise Visa® Credit Card doesn't measure up to most secured credit cards with no annual fee. Yes, these cards generally require a security deposit of several hundreds of dollars upfront (though some are more flexible on that point than others). But unlike with annual fees, security deposits are refundable if you maintain a good payment history. More than that, some secured cards earn better rewards and, unlike the Petal® 1 Rise Visa® Credit Card, they offer upgrade paths to better products.
Consider, for instance, a card like the Discover it® Secured Credit Card, which can offer more long-term value. You’ll pay a minimum of $200 for the security deposit, but the annual fee is $0 and the rewards are solid: Earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% on everything else. There’s also a potentially lucrative sign-up offer, which Discover describes this way: INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Finally, and maybe most importantly, Discover reviews your account starting at seven months to see whether you qualify for a regular credit card.
» MORE: Are Petal cards legit?
If a hefty security deposit requirement is a deal-breaker, consider an alternative secured credit card like the $0-annual-fee Chime Secured Credit Builder Visa® Credit Card, which essentially allows you to choose your security deposit amount. A Chime Checking Account is needed to qualify, which allows you to deposit the amount of money that will become your credit limit.
Chime says the following:
The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime® Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2022 and October 2022 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.
On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
Out-of-network ATM withdrawal and OTC advance fees may apply. View The Bancorp agreement or Stride agreement for details; see back of card for issuer.
A high interest rate
Credit cards that accept applicants with less-than-ideal credit tend to have higher interest rates, and the Petal® 1 Rise Visa® Credit Card is no exception: The ongoing APR is 28.49%-35.74% Variable. Terms may vary for certain cardholders. That can get expensive if you carry a balance.
To avoid this charge, aim to pay off your credit card balance in full every month. Or, if you don’t want to worry about interest charges, explore cards like the $0-annual-fee Varo Believe Secured Credit Card or the Chime Secured Credit Builder Visa® Credit Card. They don't charge interest because you're not allowed to carry a balance from one month to the next. You'll have to open an accompanying bank account to qualify for these cards, but you won't be able to overextend yourself.
Other cards offer more cash back
The Petal® 1 Rise Visa® Credit Card earns up to 10% cash back when you shop with select merchants. It's a nice feature for a card that's friendly to those with less-than-ideal credit, but better offers exist.
One good example: For credit beginners, the $0-annual-fee Chase Freedom Rise® earns 1.5% cash back on all purchases, not just with some merchants. You may also qualify for a credit limit increase eventually if you manage the account responsibly and make on-time payments. You can potentially increase your odds of approval by pairing it with a Chase checking or savings account and having at least $250 deposited, but it’s not a requirement. Plus, you could potentially qualify to upgrade to the Chase Freedom Unlimited® at a later time.
With poor credit (FICO scores of 629 or lower), you can consider a secured credit card like the $0-annual-fee Capital One Quicksilver Secured Cash Rewards Credit Card, which earns 1.5% cash back on all purchases.
How To Decide If It's Right For You
The cost of the Petal® 1 Rise Visa® Credit Card is on the lower end compared with other high-fee credit cards for those with less-than-ideal credit, but it doesn’t beat other credit-builder cards that have no annual cost.
If you can afford to put down a deposit on a secured credit card that offers rewards and a path to upgrade to an unsecured credit card with the same issuer, it can offer significant value throughout your credit journey. Or, if your budget needs more flexibility, consider an alternative secured credit card that lets you choose the deposit amount.
The $0-annual-fee Capital One Quicksilver Secured Cash Rewards Credit Card earns 1.5% cash back on all purchases. It requires a minimum security deposit of $200, but in addition to rewards, it provides a potential credit limit increase and an opportunity to upgrade to a regular unsecured credit card if you qualify.
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Methodology
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