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Petal, a credit card issuer specializing in helping people with either no credit history or a limited one with a way to get a credit card, has now rolled out a rewards credit card. This new card offers cardholder's cash back ranging from 1% to 1.5% on all eligible purchases. What is interesting about this card is that people are actually rewarded for making on-time payments.
How does it work? Once people get their new card they automatically start earning 1% back on all their eligible purchases. After six months of making on-time payments the amount of cash back they get is raised to 1.25%, and finally, after 12 months of on-time payments, their cashback goes up to 1.5%.
More about the Petal card
While most credit cards require people to have a credit score in order to be approved for their credit card Petal does not. They use a variety of other data to approve new cardholders, and the APR range for their card is 12.99% - 26.99% Variable.
The credit limit for the Petal card ranges from between $500 and $10,000. They tailor the card's credit limit to help cardholders keep their utilization levels low, so they can build their credit. In fact, they also provide cardholders with tools to help them get their credit where they want or need it to be. These features include an in-app spending planner, so cardholders can track their spending and boost their credit score over time.
Is there an annual fee for this card? The answer is no, and they have also done away with other fees too including late payment fees and foreign transaction fees.
Security and customer service
These days no matter what credit card you have security is important. Petal comes along with security features including encrypting cardholder's data to keep data secure.
Cardholders can also freeze their account if they believe there is an issue with their card, and then they can unfreeze it when they are ready.
Their customer care representatives are available 24 hours a day and seven days a week.
There've been some changes to the initially launched Petal card. Now there are not one card but two Petal credit cards - the Petal® 1
No Annual Fee Visa® Credit Card and the Petal® 2
Cash Back, No Fees Visa® Credit Card. The first is catered to those with limited credit, and the second can be a good option for people with good credit. You can review the Petal 1 card details here, and you will find Petal 2 details here.