The Petal credit card has an interesting take on credit that not many other companies are going after. Typically, when a potential cardholder has either no, or almost no existing credit, most companies would offer them a secured card, where there is an annual fee, high interest rates, and no reward program.
However, with the Petal credit card, it looks like some of those bad attributes will not be present on the card. There is no annual fee on the card which can be a deal breaker for those that really need a credit card. Now, it looks like Petal is adding a cash back option!
The Reward Categories
The Petal credit card will begin to offer cash back, in a way that encourages people pay off their credit cards. With consecutive months of paying the card on time, the reward category will increase.
- 6 months of paying the card on time will give its users a 1.25% cashback reward
- 12 months of paying the card on time will give its users 1.5% cashback.
At the end of the day, the Petal credit card is for those that don’t really have much of a credit history. Still, for those people, this is a nice option that does not charge an annual fee that a secured card might. It is nice that Petal helps encourage the people that are just getting started with good habits. The more you pay on time, the more you can earn. You never want to pay interest on credit cards, especially the really high rates that beginner cards charge.
What is your favorite credit card when you have either no or a small credit history? Let us know below!