of Petal® 1 “No Annual Fee” Visa® Credit Card A product designed for people with less-than-perfect credit and cash flow, but plans to add a monthly fee to some cardholders, making it less useful among such customers right.
Here’s a summary of upcoming changes:
The following terms are effective July 2023.
A monthly fee applies to some existing cardholders. Current cardholders notified by Petal will be required to pay an $8 monthly fee ($96 annually) to keep their card.All other cardholders continue to pay $0 Annual fee. Petal said the change will not affect new applicants. Petal® 1 “No Annual Fee” Visa® Credit CardHowever, the company could not share specific details on what criteria cardholders might have to pay a monthly fee.
Cash-like transactions supported are extended to all cardholders. all Petal® 1 “No Annual Fee” Visa® Credit Card Cardholders pay $10 or 3% of each cash equivalent transaction value, whichever is greater. The term specifies money orders, person-to-person transfers (such as payment apps like Venmo and CashApp), and cash-like transactions such as gift cards, to name a few. Previously, these transactions were not fully supported by Petal.
The company didn’t say why the terms are changing for certain cardholders, but it has a response.
“Recent changes made to a subset of Petal 1 cards reflect changing card market dynamics after these cards were opened,” Petal said in an email. “Changes in terms are a relatively common industry practice and occur from time to time based on economic and other factors.”
Cardholders can opt out
Cardholders who don’t want to pay the monthly fee can opt out by July 2023 through Petal’s app or by contacting the company, but doing so will result in account closure. Account closure can shorten the time frame and negatively impact your credit score. length of your credit history and/or Credit usage rate.
Still, it probably makes sense for most cardholders to opt out, albeit timing is important. For those who use Petal® 1 “No Annual Fee” Visa® Credit Card Ability to strategically apply for new low-cost credit cards for better credit Before Opt out and close your Petal account.
Those who decide to keep Petal® 1 “No Annual Fee” Visa® Credit Card will continue to use the same credit card and login information to manage your account.
Cardholders must redeem accumulated cashback before opting out. Per Petal’s terms, if your account is closed, you will lose your cashback benefits.
What this means is that Petal® 1 “No Annual Fee” Visa® Credit Card
It’s not uncommon for credit cards to change their credit limits, interest rates, incentives, and other terms, but this particular change goes against one of the original main selling points of credit cards. Petal® 1 “No Annual Fee” Visa® Credit Card In short, its reputation as one of the best low-cost ways to strengthen your credit.
If you are one of the customers affected by this change, For credit card beginners (or trying to fix it), it’s cheaper to own than $96 a year. After all, Petal’s next product, Petal 1 Rise, Petal® 1 “No Annual Fee” Visa® Credit Cardand cheaper to own ($59 annual fee).
However, Petal said you can’t downgrade to Petal 1 Rise to save money. Again, if you opt out of paying the monthly fee instead, Petal® 1 “No Annual Fee” Visa® Credit CardIn that case, your account may be closed and your purchasing power and credit score may decrease.
Overall, this is a major negative change for those affected.