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Today the Petal Visa Credit Card announced new cash back rewards and an in-app tool aimed at encouraging people to build healthy credit.
It’s the first rewards program that Petal Visa Credit Card has ever rolled out, and it offers 1% cash back on all purchases made as of May 1. The cash back rate increases to 1.25% after you make six payments on time — and bumps up to 1.5% cash back after 12 on-time payments.
Along with the tiered cash back rewards, the Petal Visa Credit Card’s new in-app budgeting tool — called “set your own spending plan” — is meant to help cardholders control their card use. While this tool can’t stop you from maxing out your card, it may help you better track your spending.
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If you’re looking to build or rebuild your credit, you may know how tough it can be to get a credit card, let alone one with a decent spending limit and no annual fee. So the Petal Visa Credit Card, with its more holistic approach to reviewing applicants and no annual fee or security deposit, was already a good contender for folks with credit that needs work.
But by adding cash back rewards, this card could go from “nice to have” to being your primary card for most purchases. The cash back rewards at all tiers are unlimited, meaning any purchase on the card qualifies. And you can redeem cash back either as a statement credit in any amount, or as actual cash back in the form of a check when the amount is at least $20.
The program is also forgiving if you stumble a bit. Missing a payment — or even multiple payments — won’t trigger any reduction in your cash back earning rate.
The Petal Visa Credit Card’s new rewards are meant to encourage cardholders to use credit in a healthy way. But it’s still a credit card — and this means any balance you carry over month to month will include interest charges.
So if you think this card might work for you as a credit-building tool or for practicing healthy spending habits, just remember: You’ll need to pay off your balance in full and on time each month to avoid paying interest that could pile up and undermine your progress. And it’s never a good idea to make purchases that aren’t in your budget just to get cash back rewards.
If you’re already making purchases with your Petal Visa Credit Card and keeping your spending in check, the new cash back rewards are a nice perk that could offer some encouragement on your credit-building journey.