topic Petal 1 & 2 just added a $8mo fee to their No fee visa in Credit Cards

Petal 1 & 2 just added a $8mo fee to their No fee visa

Drifter73 — Thu, 15 Jun 2023 22:00:10 GMT

So, Petal 1 just made it super easy for me to close my account with them.

I got Petal 1, 2 years ago as part of my rebuild because it had no fee.

I did see a few months ago they released the new Petal 1 Rise with a annual fee and their site currently shows both, the no fee and the rise with af.

However, today I got an email that they are adding a $8 per mo. Fee to my Petal 1 legacy card. So I logged into my app and it gave an option to accept the $8 fee or close my account.

Since it's a sockdrawered card, I closed it. Bye bye $1400.

Not a big deal. I was contemplating calling in to close it anyways, they just made it super simple for me with a button click.

It helped me when I needed to rebuild, but I outgrew it with much better cards.

Anyone else get the same notification?

Re: Petal 1 just added a $8mo fee to their No fee visa

Lou-natic — Tue, 16 May 2023 23:39:02 GMT

No fee card suddenly gets fee...yeah you did the right thing. The fact that they made it so easy tells me they were already expecting backlash and actually thought ahead a little bit. What a weird thing to go through with though. I'm sure defaults are up though and this was their way of dealing with it. Glad you could close with little impact. Unfortunately there are probably a lot of people out there that will be stuck with the new $8 per month fee. Hopefully everybody can jump ship that is able.

Re: Petal 1 just added a $8mo fee to their No fee visa

M_Smart007 — Tue, 16 May 2023 23:40:58 GMT

Congrats on closing it!

Re: Petal 1 just added a $8mo fee to their No fee visa

ptatohed — Tue, 16 May 2023 23:44:35 GMT

That's lame. I don't see any indication of a monthly fee. I wonder if it is an inactivity or dormancy fee just because you have not been using your card? Just guessing.

https://www.petalcard.com/petal-1

Re: Petal 1 just added a $8mo fee to their No fee visa

Drifter73 — Wed, 17 May 2023 01:28:28 GMT

@ptatohed wrote:
That's lame. I don't see any indication of a monthly fee. I wonder if it is an inactivity or dormancy fee just because you have not been using your card? Just guessing.

https://www.petalcard.com/petal-1

That's what I thought it was at first too when I checked the same Petal 1 page you linked to, but the wording was different.. basically, thanks for being valued customer. We wanted to let you know we are updating our Petal 1 terms of use, because we are adding even more cash back categories. In order to continue saving with your Petal 1 card you'll need to accept the new terms and $8 per month membership fee. We value you as a customer and understand if you decide to close your account. Please login to your app to accept or decline the new terms of use.

It really didn't feel or read like an inactivity action.

I did see posts on reddit about others that got the same notice as me today. Here's the reddit I saw earlier: https://www.reddit.com/r/CreditCards/comments/13jejfu/petal_1_introducing_8_monthly_membership_fee/

Re: Petal 1 just added a $8mo fee to their No fee visa

Drifter73 — Wed, 17 May 2023 01:24:37 GMT

@Lou-natic wrote:
No fee card suddenly gets fee...yeah you did the right thing. The fact that they made it so easy tells me they were already expecting backlash and actually thought ahead a little bit. What a weird thing to go through with though. I'm sure defaults are up though and this was their way of dealing with it. Glad you could close with little impact. Unfortunately there are probably a lot of people out there that will be stuck with the new $8 per month fee. Hopefully everybody can jump ship that is able.

Unfortunately I think you are right. Some people may still be fresh in their rebuilds and stuck with it.

What's more unfortunate. Is the $8 per month works out to double the cost of their new Petal 1 Rise versions af.

Re: Petal 1 just added a $8mo fee to their No fee visa

FireMedic1 — Wed, 17 May 2023 11:32:44 GMT

Might be a way to cover all the CC debt thats on the rise with no stopping in site. Yet.

Re: Petal 1 just added a $8mo fee to their No fee visa

mrgarrettscott — Thu, 18 May 2023 22:37:24 GMT

I got my original Petal card before there were Petal 1/Petal 2 cards. I was rebuilding then and it was my go-to card for a long time, with a SL of $850 and currently sitting at $2300. My card eventually became Petal 2. I do know if I was the owner of a Petal 1 and received this notice, I would close it without hesitation. The card is no longer one I carry; however, I use it for my gym membership each month to keep it active.

Re: Petal 1 just added a $8mo fee to their No fee visa

Jeffster1 — Thu, 15 Jun 2023 20:27:10 GMT

OK...I'm going to be superficial and say I never applied for this card because I thought it was ugly. Of course, just an opinion.

However, in all seriousness, the implementation of an $8 monthly membership fee would be a deal-breaker for me.

Re: Petal 1 just added a $8mo fee to their No fee visa

NikJ4 — Thu, 15 Jun 2023 20:26:06 GMT

I had Petal 2 and was advised they were converting to Petal 1 with $8/month fee. I hated to lose the $4700 limit but I am not for paying that fee. They can keep it and the card. Oh well.

congrats to you as well for closing.

Re: Petal 1 just added a $8mo fee to their No fee visa

Drifter73 — Thu, 15 Jun 2023 21:01:34 GMT

@NikJ4 wrote:
I had Petal 2 and was advised they were converting to Petal 1 with $8/month fee. I hated to lose the $4700 limit but I am not for paying that fee. They can keep it and the card. Oh well.

congrats to you as well for closing.

I think they may be restructuring to target a a whole different/lower level of sub prime that are desperate enough for credit opportunities that they are willing to pay $8 per month to build or burn 🔥...

They'll probably have a new algorithm deployed as well to detect potential risks and liabilities pretty fast moving forward to help insure the $8 compensates for the burn loses.

With that type of fee adding up monthly, I can only imagine that most new apps will be desperate, failed to read the fine print, or intentionally plan to burn the credit line, unfortunately.

Re: Petal 1 just added a $8mo fee to their No fee visa

mrgarrettscott — Thu, 15 Jun 2023 21:49:35 GMT

Well, today the notice of the $8 monthly fee arrived for my Petal Card 2. It was a good card when I was rebuilding with basic (1.5% cashback) rewards and no annual fee. Now, this card is essentially worthless. Closed the account the same day the email arrived.

Re: Petal 1 & 2 just added a $8mo fee to their No fee visa

Puppetmaster — Thu, 15 Jun 2023 22:28:57 GMT

My wife received the notice today for her card. I haven't received it (yet?) for mine. It's an easy dump for her, and will be an easy dump for me. It was a valuable card at the beginning of our rebuilds several years ago, but very shortly into our rebuilds we were able to get better cards with more useful features, better interest rates and no monthly or annual fees. So there is not even $1 per month of value in keeping these cards. If I don't get forced into the $8 per month option, I'll keep my card, but the minute I am forced to accept a penny of monthly or annual fees or close the card, it'll be "Adios! Good Riddance!" I don't appreciate the bait & switch, especially for those it will hurt.

Re: Petal 1 & 2 just added a $8mo fee to their No fee visa

Beefy1212 — Thu, 15 Jun 2023 23:57:39 GMT

Got my notice today as well thought it was for inactivity @CreditAggie mentioned it looked like it was across the board

Re: Petal 1 & 2 just added a $8mo fee to their No fee visa

Willy_Ong — Sat, 17 Jun 2023 02:40:19 GMT

I think they just can't hold their business anymore, no credit card company that easy to let their card holder to close their account in the apps, it showed petal wants us to close the account.

I have petal original card and become petal2, now has $4,700 limit, I didn't use the card, just for monthly car wash payment. I'm not paying fee for this junk. Cashback redeemed, account closed.

Re: Petal 1 & 2 just added a $8mo fee to their No fee visa

TheRedHat — Sat, 17 Jun 2023 04:43:58 GMT

I'm really glad I closed my Petal 2 a while ago. It was based on advice I saw on these forums about being wary of trusting new fintech companies and their products.

Re: Petal 1 & 2 just added a $8mo fee to their No fee visa

notmyrealname23 — Wed, 27 Sep 2023 15:29:33 GMT

Just saw this when the new Petal1 Rise card showed up in the mail (I'm a Petal 2 holder, but haven't used the card much outside of the every so often pack of gum). Closed, will get stuck with a $7.98 fee for the first month. Bye bye $7500 CL and oldest open card.