The “Cash Score” and a Fresh Approach to Credit

The biggest differentiator for Petal is how it evaluates applicants.

Instead of only looking at your FICO credit score, which many first-time cardholders don’t have, Petal developed its own system called the Cash Score.

This score analyzes your bank account information to evaluate your income, spending habits, and savings.

By doing this, Petal can approve more people who are financially responsible but lack a formal credit history.

This makes the Petal 2 card an excellent alternative to secured credit cards, which require you to put down a cash deposit. It offers a way to build credit without an upfront cost.

Zero Fees, Real Cash Back Rewards

The Petal 2 card is famous for its “no fees whatsoever” policy. This is a rare and significant benefit for a credit-building card. You won’t have to worry about:

• Annual Fees: The card has no annual fee, which is great for keeping costs low.
• Late Payment Fees: Even if you miss a payment, you won’t be charged a late fee. This is a valuable safety net, though it’s still crucial to pay on time to build your credit.
• Foreign Transaction Fees: This makes the card a solid choice for travel or online shopping from international websites, as you avoid the extra charges that most cards tack on.

In addition to its no-fee policy, the Petal 2 card also offers a cash back rewards program.

You start by earning 1% cash back on all eligible purchases.

What’s more, if you make your payments on time, your rewards can increase.

After six consecutive on-time payments, your cash back jumps to 1.25%, and after 12 consecutive on-time payments, it can reach up to 1.5%.

This unique feature incentivizes responsible financial behavior while rewarding you for it.

Other Benefits and Features

The Petal 2 card also offers a few other perks that make it a compelling choice:

• Higher Potential Credit Limits: While it varies by user, some cardholders have been approved for credit limits of up to $10,000, which is often higher than what is offered by other credit-building cards.
• Credit Reporting: Petal reports your payment activity to all three major credit bureaus (Equifax, Experian, and TransUnion). This is essential for building a positive credit history, as consistent on-time payments help increase your credit score over time.
• Comprehensive App: The Petal app is a key part of the experience. It helps you manage your money by tracking your credit score, monitoring your spending, and setting a budget.

Is the Petal 2 Right for You?

The Petal 2 is an excellent choice for individuals who want to build a credit history from scratch without a security deposit or fees.

It’s a transparent and rewarding option for those who have a solid financial foundation but lack a credit score.

However, it’s important to be aware that the variable APR (Annual Percentage Rate) can be high, so it’s essential to pay your balance in full each month to avoid accumulating interest.

If used responsibly, the Petal 2 card can be a powerful tool for establishing a strong credit foundation for your future financial goals.

Source of information: www.petalcard.com/petal-2