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Key takeaways
- WebBank credit cards are ideal for individuals with limited or weaker credit histories.
- Cardholders can build their credit history with these cards by making timely payments and keeping balances low.
- Options include four personal credit cards and one business credit card with varying benefits and rewards programs.
- These cards could be a good choice for those looking to build credit, but individuals with stronger credit may find better options elsewhere.
Even if you are unfamiliar with WebBank, you might know some of the credit cards it issues.
WebBank, an FDIC-insured financial institution based in Salt Lake City, Utah, issues credit cards and other financial products for a variety of brands. Many are designed for consumers with limited or weaker credit histories.
Credit cards by WebBank typically give people who haven’t built up much of a credit history or those with some dings on their credit reports the chance to qualify for an unsecured credit card. They can then use these cards to build a longer or stronger credit history by paying their bill on time each month and keeping balances low or paid in full.
But are WebBank credit cards worth adding to your wallet? They might be if you need help building credit, which will help you gain access to better credit cards and loans. And if you run a small business? WebBank offers one business card that might be a fit.
Best WebBank credit cards
WebBank currently offers four personal credit cards that are solid choices for consumers hoping to build a longer credit history and a business credit card that makes sense for business owners who need a higher credit limit.
| Card name | Card benefits | Annual fee |
|---|---|---|
| Petal® 1 “No Annual Fee” Visa® Credit Card* |
|
$0 |
| Petal® 1 Rise Visa® Credit Card |
|
$59 |
| Petal® 2 “Cash Back, No Fees” Visa® Credit Card* |
|
$0 |
| Avant Credit Card |
|
Annual fee of $0 to $99 and/or monthly fee of $0 to $1.99, depending on the strength of your credit |
| Capital on Tap Business Credit Card |
|
$0 |
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The Petal 1 card is a no-annual-fee card that can help you build or repair your credit history at no cost. It’s also an unsecured credit card, so you don’t have to make a deposit to open an account.
The rewards program is interesting: Only certain retailers participate in it at any one time, meaning that most of your purchases with your card will generate no rewards. But if you charge products with participating retailers, you can earn 1 percent to 10 percent cash back on those purchases. You’ll need to check online with Petal 1 to discover which retailers are participating in the rewards program at any time, but retailers that have participated include brands such as Shake Shack, Sam’s Club and Costco.
Because this is a basic card, there is no welcome offer. Petal offers tools to track your credit score as well as a path to credit limit increases with responsible use through the Leap program. The card has a variable APR of 28.99 – 33.99% Variable.
-
Pros
- No annual fee or foreign transaction fees
- Cash back at select merchants
- Ability to steadily grow a credit history
Cons
- No welcome offer
- Not all purchases will generate rewards points
- Depending on your credit, you might be saddled with a low credit limit
-
The Petal 1 Rise is very similar to the Petal 1 — its most notable difference being its $59 annual fee. The Petal 1 Rise has a variable APR of 28.99 percent to 33.99 percent, currently the same as its no-annual-fee Petal 1 counterpart. Both cards share similar features meant to help you build or repair your credit history.
The Petal 1 Rise features the same rewards program of earning 1 percent to 10 percent back at select merchants. These rewards can be redeemed as statement credits of any amount or checks greater than $20.
The Petal 1 Rise also comes with credit-building features such as free credit-scoring tools and the possibility of credit limit increases through the Leap program.
There is no welcome offer for this card.
-
Pros
- Cash back at select merchants
- No foreign transaction fees
- Ability to steadily grow a credit history
Cons
- An annual fee of $59
- No welcome offer
- Depending on your credit, you might be saddled with a low credit limit
-
The Petal 2 card is a significant step up from the Petal 1, mostly because it gives you the opportunity to earn more rewards while building a credit history. Like the Petal 1, it’s a no-annual-fee card designed for people with short or weaker credit histories. But unlike the Petal 1, you’ll earn rewards on all your purchases — up to 1.5 percent cash back on every dollar you charge.
You’ll start at 1 percent cash back at card opening, but the rate increases to 1.25 percent cash back after making six on-time payments, and 1.5 percent cash back after 12 on-time payments.
You can also earn 1 percent to 10 percent cash back if you make charges at select retailers that participate in the Petal Offers program. You’ll have to check online with Petal 2 to determine which retailers are participating at any time.
-
Pros
- You’ll earn points on every purchase
- You can increase the amount you earn with on-time payments
- No annual fee, late fees, or foreign transaction fees
Cons
- The rewards program isn’t overly generous
- Need to wait at least one year before earning maximum rewards
- No welcome offer
-
The Avant Credit Card is as basic as a credit card can get. It offers no rewards program and no welcome offer. The card’s possible credit limit ranges from $300 to $3,000 and the variable APR ranges from 29.99 percent to 35.99 percent. Even worse? You might pay an annual fee that ranges from $0 to $99 and/or a monthly fee ranging from $0 to $1.99. Rates, fees, and terms may vary for those who receive offers through the mail, but if you apply through Avant’s website and are approved, your card will come with a $59 annual fee, 35.99% APR, and $300 minimum credit line.
But the Avant card is designed for consumers with “fair” FICO credit scores, which generally means scores as low as 580. It’s an unsecured card that can help you build a credit history or improve a weak score without having to come up with a deposit to open an account. As long as you pay your balance on time and in full to avoid the high interest rate, your credit score will steadily increase, and you can then apply for a card that offers more perks like a rewards program.
Avant offers what it calls proactive credit limit increases. If you pay your bills on time and don’t run up too much debt, Avant will inform you if you qualify for a higher credit limit, though your limit can never rise above the card’s maximum of $3,000.
-
Pros
- You can qualify for this card with a low credit score
- Avant will automatically inform you if you’re eligible for a credit limit increase
Cons
- No rewards program
- You could be charged an annual fee and/or monthly fee
- No welcome offer
-
The Capital on Tap Business card is a business card with a basic rewards program: You’ll earn 1.5 percent cash back on all purchases that you make, but you can boost your cash back to 2 percent by switching to weekly AutoPay. That’s a cash-back program that’s easy to understand, and as a small-business owner, you won’t have to spend time determining which spending categories will earn you the most cash back. But compared to other rewards programs found with other business credit cards, this one isn’t especially generous. Some of the best small-business credit cards offer better rewards or useful perks like travel insurance or purchase protection.
On the plus side, you may qualify for a credit limit as high as $50,000 with the Capital on Tap Business card. That’s a generous limit and can come in handy for business owners who often struggle with their cash flow.Depending on your creditworthiness, you can qualify for a variable APR ranging from 17.49% – 57.49% variable. The bottom end of that range is one of the lower interest rates around for a business card. But the upper limit is well past the 36% threshold commonly used as a benchmark for predatory lending, and can be extremely costly if you carry a balance.
The qualification criteria for the Capital on Tap Business card is also quite strict. You need to be an active director or majority shareholder of a business, and the business must be based in the U.S. (excluding Nevada, North Dakota, and South Dakota) and have an annual revenue of at least $30,000.
-
Pros
- Credit limit as high as $50,000
- No annual fee
- Rewards on all purchases
Cons
- Rewards program is simple but requires weekly AutoPay for maximum rewards
- No welcome bonus
- Variable APR can be as high as 35.99 percent
Is a WebBank credit card right for you?
Should you apply for one of these WebBank cards? For many, this may largely depend on your financial health. If you have a weak or short credit history, a WebBank card will give you the chance to rebuild damaged credit or build a longer credit history.
That’s because your payments on these cards will be reported to the three major credit bureaus: Equifax, Experian and TransUnion. Building a history of on-time payments will steadily improve your three-digit credit score. Just make sure to make these payments on time. A single payment made 30 days past your card’s due date could cause your credit score to fall by several points.
When deciding if one of WebBank’s cards is right for you, first consider the following:
- Do you have good-to-excellent credit? Then there’s little reason to apply for most of WebBank’s cards. If you can already qualify for the best cash back cards on the market, you’ll likely find options for better rewards or lower fees than anything WebBank offers.
- Do you need to rebuild your credit? Are you struggling to qualify for other cards? A WebBank card might be a solid choice.
- Can you afford the annual or monthly fee? Many of WebBank’s cards come with annual or monthly fees that can add up over time. This extra cost may present a financial burden for some customers.
How to choose a WebBank card
If you’re debating whether to apply for a credit card issued by WebBank, there are several factors you should consider. Everything from your credit score to the fees and perks offered by the cards could impact your choice.
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Many WebBank credit cards are appropriate for consumers who have not built a long enough credit history to qualify for other cards. This could happen if you haven’t taken out loans or credit in the past. Without a record of on-time payments, it can be difficult for consumers to generate a credit score. But if your score is in the good or higher category — usually considered to be a FICO score of 670 or higher — you can probably qualify for a credit card that offers more perks and a better rewards program than what you’d get with most of WebBank’s cards.
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It’s true that WebBank’s Petal 1, Petal 1 Rise, Petal 2 and Capital on Tap cards do offer rewards programs. But these programs aren’t especially generous when compared to the rewards offered by competing cards. And the Avant card doesn’t offer any rewards program. These cards also don’t come with many other perks. If your credit score is high enough, look for a credit card that offers a more valuable rewards program.
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You can avoid a lot of fees with the Petal 1, Petal 2 and Capital on Tap cards. None of these cards charge an annual fee or foreign transaction fees/foreign exchange fees. The Petal 2 also doesn’t charge any late payment or returned payment fees, while the Capital on Tap card doesn’t charge ATM fees in the U.S. That makes these cards more attractive if you want to spend as little as possible on your credit card. However, the Petal 1 Rise card and Avant card might charge you an annual fee or monthly fee, depending on your creditworthiness. These cards might not be worth their annual fees.
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Even though WebBank credit requirements can be fairly low and accessible to people with fair credit, there are other options available if your goal is to rebuild your credit or build a credit history.The Discover it® Secured Credit Card comes with a more robust rewards program. You’ll earn 2 percent cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1 percent cash back on all other purchases. Discover will automatically match all the cash back you’ve earned at the end of your first year. The card requires a refundable security deposit of at least $200 (up to $2,500), which will serve as your credit limit.The U.S. Bank Cash+® Secured Visa® Card* card is another good choice for building a strong credit score. This secured card offers 5 percent cash back each quarter on purchases in two rotating categories that you choose (on the first $2,000 in combined purchases, then 1%); 5 percent cash back on air, hotel and car reservations booked directly in the Rewards Travel Center; 2 percent cash back on one everyday category of your choice; and 1 percent on all other purchases. That’s an impressive amount of rewards for a starter card. The card requires a refundable security deposit of $300 to $500, which will serve as your credit limit.
The bottom line
Credit cards offered by WebBank are mostly attractive options for consumers who either have no credit history or a fair credit score. These cards, though, don’t offer much in the way of perks, and their rewards programs aren’t especially valuable. Some even have annual fees or high APRs that could cost you in the long run. If your credit is even a bit better than fair, you might consider other credit-building cards that come with lower fees and more generous perks and rewards.
*The information about the Petal® 1 Visa® Credit Card, Petal® 1 Rise Visa® Credit Card, Petal® 2 “Cash Back, No Fees” Visa® Credit Card and U.S. Bank Cash+® Secured Visa® Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
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