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Expanding access to credit for people who have no credit history is a big topic these days.
This is especially true for young people who are new to loans, as well as older people who are rebuilding their credit after previous mistakes. UltraFICO and Experian Boost are two prime examples of new services addressing this issue.
FICO recently stated that about 25 million people in the US are not seeing credit. Credit invisibles are people who do not have a credit history or simply unregistered credit histories. Credit invisibility tends to make it harder for you to apply for a loan or get a credit card, and tends to increase the cost of security deposits for things like utilities and apartment rent.
Enter Visa® Petal® 1 Credit Card “No Annual Fee” is an excellent choice for cardholders with no credit history. Read on to learn more about the benefits of Petal 1 and how they can help you develop good credit habits.
Petal 1 “No Annual Fee” Visa Credit Card Benefits
Unlike his cousin, Petal® 2 Cash Back Visa® Credit Card No Fee, Visa Petal 1 credit card does not have a bonus program. However, the card is good for applicants without credit due to its high potential credit limit and free (for the most part) nature.
Petal Cash Score Approval
Because the FICO Score is made up of payment history, credit usage, and length of credit history – all data that comes from your experience with credit – it’s nearly impossible to get approved for the best credit cards on the market without a credit score. In addition, some of the cards available to new cardholders, with their low credit limits and high fees, make it difficult to get a loan.
Here’s how the Visa Petal 1 credit card can help. Instead of judging you based on a non-existent (or not so good) credit score, Petal takes a detailed look at an applicant’s income and expenses and develops your Petal Cash Score. This is important because just because you are not familiar with credit does not mean that you will be irresponsible with credit. If you have a good job and healthy financial habits, pay your rent, mobile phone and utilities on time, and even save money for a rainy day, you are likely to be a creditworthy borrower. The petal is just a little harder to find you. Because of this, financially responsible individuals with no credit have a good chance of getting Visa Petal 1 credit card approved.
High credit limit and no fees
A key part of building a credit score is maintaining a low credit utilization ratio (the amount of credit borrowed in relation to your credit limit) to prove that you are not overspending and plan your purchases well. This can be difficult to achieve if your credit limit is low, say around $2,000.
In fact, many young people start with secured credit cards, but some of these cards start at $200, which makes them rather impractical.
Depending on your current financial condition, you can get an initial credit limit of $300 to $5,000 (quite a lot for a credit card). And if you make payments on time within six months, your credit limit may increase.
Petal 1 Visa also does not charge annual fees or fees for foreign transactions. However, you should plan your expenses diligently and pay your credit card bill on time as the card charges a late payment fee of up to $40 and a chargeback fee of $29.
Petal Offers Program and Petal App
Although the Petal 1 Visa credit card is not as secure as other cash back programs, it does offer cash back through the Petal Offers program. When you share your location with the Petal app, you can earn 2% to 10% cashback at select stores near you.
Another really useful aspect of Petal cards is the mobile app. It offers useful budgeting tools and presents interest in pure dollar terms. Petal charges relatively high interest rates (between 20.24% and 29.74% per annum with variable interest), so we strongly recommend paying in full. Through the app, you can also view your VantageScore 3.0 credit score monthly and set up automatic payments.
Credit card increase Visa Petal 1
If you are in a good financial position despite past failures or lack of credit, you have every chance of being approved for the Petal 1 visa. Whatever the credit limit assigned to you, be sure to manage your budget accordingly to maintain a good credit utilization ratio . To know if you’re on course, you can set a monthly budget and track your spending with the Petal app. Regularly reviewing VantageScore will also keep you informed of your progress in improving your credit score.
When it comes time to pay your bills, make sure you pay in full and on time. Maintaining these good credit habits will build your credit score steadily and prevent you from paying any late payments or interest on carried over balances. Hopefully in six months you will be able to get an even higher credit limit.
bottom line
Designed primarily for those with a limited (or no) credit history or a non-top-notch credit score (but still a solid cash flow), the Visa Petal 1 credit card is a great start for those who want to improve their credit score without paying deposit. In addition, the card has many benefits such as no annual fee, potentially high initial credit limit, and even cash back at some stores to set you up for success.
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The editorial content on this page is based solely on the objective judgment of our contributors and is not based on advertising. It was not provided or ordered by credit card issuers. However, we may receive compensation when you click on links to our partners’ products.