If you’re struggling with poor or limited credit, you know how challenging it can be to find a credit card that meets your needs. Luckily, there are options available to help you build your credit. In this article, we’ll compare the Petal® 1 Visa® and the Credit One Bank® Platinum Visa® for Rebuilding Credit. Both cards are designed specifically for individuals looking to improve their credit scores. So, let’s dive in and see which one is the right fit for you!
How the Cards Stack Up
When it comes to building credit, both the Petal® 1 Visa® and the Credit One Bank® Platinum Visa® offer features and tools to help you improve your credit profile. Here’s a side-by-side comparison of these two credit-building cards:
Welcome Bonus
Unfortunately, neither card comes with a welcome bonus offer. Welcome bonuses are limited-time offers for new cardholders to earn a one-time bonus, usually related to the card’s rewards program structure.
Rewards
The Petal® 1 Visa® doesn’t offer a traditional rewards structure. Instead, cardholders have the opportunity to earn cash back with select local and regional merchants. Cash back amounts range from 2% to 10% based on the offer terms. On the other hand, the Credit One Bank® Platinum Visa® earns unlimited 1% cash back on eligible purchases of gas, grocery, internet, cable, satellite TV, and mobile phone service. The Credit One Bank® Platinum Visa® also has a separate More Cash Back Rewards Program that offers up to 10% cash back at select merchants.
While both cards have their own perks, the Credit One Bank® Platinum Visa® is the clear winner for earning rewards with its unlimited 1% cash back on popular spending categories.
Annual fee
The Petal® 1 Visa® doesn’t charge an annual fee, which is a nice benefit. However, Credit One Bank® does charge a $39 annual fee for the Platinum Visa. It’s important to consider whether the benefits and rewards of the card justify the annual fee.
In this category, the Petal® 1 Visa® takes the win with no annual fee.
APR
The annual percentage rate (APR) is an important factor to consider when choosing a credit card. The Petal® 1 Visa® has a variable APR range of 24.99% to 34.49%, while the Credit One Bank® Platinum Visa® has a variable APR of 28.99%. While both cards have variable APRs, the Petal® 1 Visa® potentially offers a lower APR, depending on your creditworthiness.
In terms of APR, the Petal® 1 Visa® is the winner.
Foreign transaction fee
If you frequently make purchases outside of the U.S., a foreign transaction fee can quickly add up. The Petal® 1 Visa® has no foreign transaction fees, while the Credit One Bank® Platinum Visa® charges either $1 or 3% of each purchase in U.S. dollars, whichever is greater.
For those looking to avoid foreign transaction fees, the Petal® 1 Visa® is the winner.
Other card benefits
As credit-building cards, both the Petal® 1 Visa® and the Credit One Bank® Platinum Visa® offer the basic benefits typically found in most credit cards. These benefits include fraud protection, autopay, mobile access, account notifications, and payment reporting to the major credit bureaus.
In terms of additional benefits, it’s a tie between the two cards.
Which Card earns the most?
When it comes to earning potential, the Credit One Bank® Platinum Visa® takes the lead. With its 1% cash back on everyday spending in bonus categories like gas, grocery, internet, and more, you have the opportunity to earn rewards while building your credit. The Petal® 1 Visa® may offer cash back with select merchants, but the Platinum Visa’s rewards program is more comprehensive.
Our recommendations
Based on our comparison, we have two recommendations for you:
Why we recommend Petal® 1 Visa®
The Petal® 1 Visa® is a great option for individuals who may not meet the credit requirements for other credit cards. With no annual fee and potentially lower APR, it’s a suitable choice for those looking to build credit and manage their finances responsibly. Petal® also offers prequalification, allowing you to check whether you meet the basic requirements without negatively affecting your credit score.
Why you would still opt for Credit One Bank® Platinum Visa®
The Credit One Bank® Platinum Visa® is an excellent choice if you’re looking to build credit while earning cash back rewards. Although it does come with a $39 annual fee, the rewards program allows you to recoup some of your spending while improving your credit profile.
TIME Stamp: Prequalification allows you to check offers
Both Petal® and Credit One Bank® offer prequalification, giving you the opportunity to check whether you meet the basic criteria for their cards without impacting your credit score. Prequalification doesn’t guarantee approval, but it provides valuable insight into your standing and eligibility.
Frequently asked questions (FAQs)
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Does the Petal® 1 Visa® credit card do a hard inquiry?
- No, the Petal® 1 Visa® does not require a hard inquiry when you apply. Instead, you can apply using a linked bank account(s), and Petal® will evaluate your eligibility based on factors like your monthly bills and income.
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Does the Petal® 1 card have preapproval?
- Yes, Petal® offers preapproval for its credit cards. Preapproval won’t impact your credit score but doesn’t guarantee approval for a card.
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How can I check my Credit One Bank® Platinum Visa® application status?
- Applicants can check the status of their Credit One Bank® Platinum Visa® card applications on the Credit One Bank website.
So, there you have it! The Petal® 1 Visa® and the Credit One Bank® Platinum Visa® are both viable options for building or rebuilding your credit. Each card has its own advantages, so make sure to consider your specific needs and financial goals when making your decision.