The Petal 1 Rise Card is a rewards credit card that exists to help people build credit — and earn a little cash back in the process.
It’s an appealing alternative to secured credit cards, which require upfront deposits as a condition of use. But the annual fee is higher than many entry-level cards, both secured and unsecured, so you’ll want to make sure the value is there before you apply.
What Is the Petal 1 Rise Card?
The Petal 1 Rise card is an unsecured credit card designed for those with low or fair credit who are looking to improve their credit score. It’s issued by WebBank.
Unlike many competing cards the Petal 1 Rise card does not require a security deposit. Initial credit limits for the card are between $300 and $3,500, but you can also earn a credit limit increase in as little as 6 months with responsible use.
This card earns 2% to 10% cash back at select merchants, including more than 500 local businesses and even more top national brands. However, Petal 1 Rise doesn’t offer a sign-up bonus or many additional benefits.
There’s a $59 annual fee for this card, beginning in the first year. There are no foreign transaction fees.
What Sets the Petal 1 Rise Card Apart?
This card has several features that help it distinguish itself from other credit cards in its category.
- No security deposit required. It might not seem like a big deal for folks with good credit, but it’s actually hard to find an entry-level credit-builder card that doesn’t require a security deposit.
- No foreign transaction fees. While several other cards for poor credit charge foreign transaction fees, this card doesn’t.
- 2% to 10% cash back on eligible purchases. This card earns 2% to 10% cash back at select merchants. There are over 500 local businesses and a similar number of well-known national brands on the list.
Key Features of the Petal 1 Rise Card
The Petal 1 Rise card offers up to 10% cash back at select merchants, no foreign transaction fees, and a very forgiving underwriting process.
There is no sign-up bonus currently offered for this card. Check back frequently for the latest offers.
This card earns 2% to 10% cash back at select merchants. Most purchases don’t earn rewards, but you can find opportunities with hundreds of local merchants and national or regional brands.
Your cash-back earnings accrue as statement credits to your account. Actual earnings may vary.
There is not currently a 0% intro APR promotion available. The current APR is 28.24% to 35.49%, depending on your personal creditworthiness.
Petal 1 Rise charges a $59 annual fee from the first year.
The late payment fee ranges up to $40, and the return payment fee ranges up to $29. There is no foreign transaction fee.
Initial Credit Limit
Your initial credit limit ranges between $300 and $3,500, depending on your creditworthiness, income, and other factors. Most applicants begin with a limit on the low end of this range.
This card requires poor credit or higher to qualify, so it’s not difficult as long as you have some sort of credit history. Indeed, the Petal 1 Rise card is designed for those with low or fair credit and who are looking to improve their credit score.
Pros & Cons
The Petal 1 Rise card has some obvious advantages. Its limitations are more subtle but equally important.
Petal 1 Rise has a few advantages that can help you to build your credit without an immediate out-of-pocket expense.
- No deposit required. Unlike secured credit cards that target similar demographics, Petal 1 Rise doesn’t require a security deposit. That’s great news if you live paycheck to paycheck.
- Eligible for a credit limit. After 6 months of on-time payments, you may be eligible for an automatic credit limit increase. But a lot depends on how you use your account in the meantime.
- No foreign transaction fees. Many entry-level credit cards still impose a 3% fee on transactions processed outside of the United States. If you travel internationally, it can save you a lot of money to have a card like this.
Petal 1 Rise is expensive and not quite as generous as it first appears. But it might be the only game in town if you’re not willing to pursue a secured credit card.
- $59 annual fee. This is a high fee for a card that may come with a credit limit of as low as $300. If this is too much, then you should consider a secured card that doesn’t have an annual fee.
- Poor rewards. Earning up to 10% cash back sounds great, but it’s only valid at “select merchants.” So this is little more than a coupon book rather than a true cash back offer.
- High interest rates. Petal 1 has a very high regular APR. That said, this is a card for those who have bad credit, so it’s not particularly surprising, just something to be aware of if you have the chance to snag a lower APR elsewhere.
How the Petal 1 Rise Card Stacks Up
This card’s closest competitor is probably the Discover it Secured Credit Card. Here’s how the two cards compare.
|Petal 1 Rise Card
|Discover it Secured Credit Card
|Dollar-for-dollar match for cash back earned at the end of your first year
|Yes, equal to your approved credit limit
|Up to 10% on select purchases
|Up to 2% on a wider range of purchases
|0% Intro APR
|Foreign Transaction Fee
|Poor or better
|Poor or better
Petal 1 Rise stands out because it doesn’t require a security deposit and earns up to 10% cash back on eligible purchases. But the lack of a sign-up bonus and glaring gaps in the rewards program, not to mention a high annual fee, erode its appeal. Overall, the Discover it Secured card is a better choice if you can afford an upfront deposit of several hundred dollars.
The Petal 1 Rise Card is a relatively simple card designed for those with poor credit. It lives up to its promise, but only if you’re willing to spend the $59 annual fee. It’s also not a card that you can expect to earn much cash back from.
But if you use this card and pay your bills on-time, you’ll see your credit score rise, opening up opportunities to qualify for more generous credit cards. And that’s the whole point.