Credit Cards

How Much Does Petal Increase Credit Limit After 6 Months

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 4 minute read

An unsecured Visa credit card with no annual fee, the Petal® 1 is aimed for customers just starting out in the credit world. It’s also a good option for people who are working to repair their credit.

The absence of Petal 1’s yearly charge is only the beginning. Petal 1 is one of the most popular alternatives to unsecured credit cards because of its simple application procedure and plenty of useful features.

You owe it to yourself to take a deeper look if you’re in the market for a new starter credit card that doesn’t need a security deposit and doesn’t punish you for having a complex credit history.

Petal® 1 “No Annual Fee” Visa® Credit Card Highlights

The Petal 1 card is a rewards credit card issued by one of the most forward-thinking financial institutions in the world, and the aforementioned are its primary characteristics.

Earning Benefits

For purchases made at participating stores, you can get a cash rebate of 2% to 10%. As long as your account is active, your cash rewards will stay valid indefinitely.

Redeeming Prizes

Once your cash-back rewards balance reaches $20 (the minimum check amount), you can request a paper check for any amount above the minimum or a statement credit.

Credit Limit

Your first credit limit might be as little as $300 or as much as $5,000, depending on your income, creditworthiness (perhaps based on your FICO credit ratings from the three main credit agencies), and other criteria.

Petal 1 is still available if you are currently establishing credit and have a difficult credit history. And in as short as six months, you may get your credit line raised with Petal Leap’s help (terms and conditions apply).

Important Charges

In addition, Petal 1 does not have any hidden fees or charges for international purchases or yearly memberships (foreign transaction fees). There may be fines incurred, such as a $29 returned payment fee and $40 late payment fee after the first instance of late payment.

Credit Bureau Information

Information about your Petal 1 account, such as your payment history, is shared with the three major consumer credit reporting agencies by Petal.

Your credit report will reflect your responsible card use, such as making all payments on schedule and paying the balance in full each month. Eventually, they might end up raising your credit score.

Additional Capabilities and Advantages

There are other features and benefits available in Petal 1 such as:

  • A smartphone application that makes it simple to manage finances, monitor spending, and automate payments while on the road.
  • Cash flow technology (cash score) that can help new credit applicants with bank accounts and sufficient financial history gain acceptance.
  • Possible pre approval in minutes without affecting credit rating

Credit Required

If you have acceptable credit or are just starting out with credit, or if you’re in the process of repairing your credit, the Petal 1 card might be a good fit for you. It’s also a good option for a student credit card.

Advantages of the Petal® 1 “No Annual Fee” Visa® Credit Card

All of these benefits are exclusive to those with a Petal 1 card.

  1. There is no recurring cost. There is no yearly price for Petal 1. That’s great news for those who want to stick to a strict budget, and it’s a nice change of pace from other starter cards.
  2. There is no need to put down a deposit. When creating an account with Petal 1, we don’t ask for a security deposit. This sets it apart from protected cards, which are popular among the same demographic.
  3. Welcome First-Time Credit-Users. Petal 1 is designed for borrowers with no credit history or a short credit history because of its unique screening approach that takes cash flow and other noncredit criteria into account.
  4. Beneficial for Customers Attempting to Reestablish Credit. Consumers who are working to repair their credit histories may also benefit from using Petal 1.
  5. Get Money Back on Certain Purchases. If you use your Petal 1 card at participating stores, you may receive rewards of 2%-10% cash back on purchases, which is excellent for an unsecured credit card.
  6. There is no charge for a foreign exchange. Petal 1 does not impose any fees for out-of-country purchases, making it ideal for frequent flyers who want to avoid additional costs associated with their spending abroad.
  7. Allowable Credit Limits May Be Fairly High. You may get a credit limit from Petal 1 anywhere from $300 and $5,000. When compared to most starter credit cards, that’s rather steep.
  8. Standardized reporting to credit bureaus. Petal is in the habit of providing the big three consumer credit reporting bureaus with account data on a regular basis. Your Petal 1 credit card has the potential to raise your credit rating if you make your payments on time and don’t max it out.

Bottom Line

“No Annual Fee” for The Petal® 1 With no annual fee, no security deposit, and cash-back benefits on certain purchases, the Visa® Credit Card stands out among starter credit cards.

There are millions of potential cardholders who are working to restore their credit, and millions more who have never had a credit card, so while it does have some negatives, like the possibility of a high APR, it is still a terrific alternative for them. However, candidates with a lengthy record of good credit may qualify for more lenient choices.

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