Traditionally, applying for a credit card meant that you must have a credit history or you won’t be able to get a card. Thanks to WebBank and a few others this process is changing. Now individuals with no prior credit history or limited credit history can also get a credit card. WebBank’s Petal Visa credit card is a great starter card that does not need you to have a credit score to apply for it.
What is the approval process for Petal Visa card?
You fill out your name, date of birth, email id, address, SSN or ITIN , link your active bank accounts and other credit card accounts during the application process. All these factors help in determining your eligibility for the Petal Visa credit card. WebBank has itsown algorithm to determine the approval process based on your financial habits.
Different approval approach if you have a credit score
If you do have a credit history then you must have a good score to be eligible for this card. The Petal Visa card is designed for building credit from the foundation and not for rebuilding bad credit.
By applying for pre-qualification process, you can get a sense of your eligibility status from WebBank without affecting your credit score. After reviewing your pre-qualification offer, if you apply for the Petal Visa card, then there would be a hard pull on your credit report for the approval process.
Best Features of Petal Visa card.
- Increased credit limit: When you apply for a secured credit card, your credit limit is proportional to your security deposit. Unsecured starter credit cards usually offer a lower credit limit of $200 as a starting point. But with Petal Visa card the credit limit range begins at $300 which is well above its competitors. Based on your individual financial credibility you can get approved for any amount between $300-$10,000.
- Cashback potential: Any users who receive a Petal credit card has an excellent potential to increase their cashback percentage by making their monthly payments on time. When you receive the card, you get a 1% cash back for all your purchases. If you pay for six months on time then you can request for a cashback increase to 1.25%. Furthermore, if you make 12 months of timely payment your cash back percentage can be moved up to 1.5%.
- Foreign transaction fee waiver: You can put your mind to rest with this card as there are no fees charged towards purchases that are made outside of your resident country.
- No late payment fees: Though late payment is not recommended as it can bring down your credit rating, it is good to know that if ever a payment posted by you is delayed, you do not incur a late payment charge on this card.
- Eligible for Local Visa offers: The Petal card being a Visa card can help you gain Uber credits when you use your card to shop or dine at local places by using the Visa Local offers which are available through the Uber app.
- Reports to all three credit bureaus: While this card is a new entrant in the credit card category, you can rely on WebBank to report your activities to Equifax, TransUnion and Experian.
- Mobile app to track spending: Most banks have apps that help you view your balance and spending. What makes Petal app unique is that it also shows how much it would cost you if you carry your balance forward. This feature is helpful in keeping your payments on track and will help you in boosting your credit score.
Drawbacks
High APR: The APR available to Petal Visa card users will range between 13.74% – 27.74%. There is no introductory APR presented to new customers. The rate you are enrolled in is based on individual creditworthiness and prime market rate. This card does not charge late fee for delayed payments. But you would incur interest charges if you carry your balance forward each month.
No Cash Advance: If you are short of cash and want to make a withdrawal then you may find yourself stuck if you do not have an alternate credit card that supports cash advance benefit. The Petals Visa card does not offer the cash advance benefits to its users.
The Petal Visa card may not be lucrative card if you are looking for joining bonus or points transfer flexibility or extra coverage benefits.
The Petal Visa card is a good fit for individuals who are looking for a simpler card to use while they build their financial habits. It is easy to manage and with the tools to keep repayment on track ,it offers reliability for the first-time credit card users.
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