About APRs

What is an Annual Percentage Rate or APR?

Your Annual Percentage Rate (APR) is the rate you’re charged each year for borrowing money. With your Petal card, your APR is the rate at which you’re charged interest if you carry a balance—that is, if you don’t pay off your Statement Balance in full by the due date.

If you’re approved for a Petal card, your APR will be displayed in the welcome email and is printed on your monthly statement.

Where can I find my APR, and can I request a lower APR?

Your APR is determined when your application is approved. If you’re approved, you’ll receive an email letting you know what your APR is. You can also find your APR listed in the Settings tab of your Petal account.

Petal APRs are variable so your APR may increase or decrease based on the Prime Rate, as reported in the Wall Street Journal. You can always find your current APR on your monthly statement.

Requests for APR adjustments will not be accepted at this time.

Will my APR change?

Your APR for Petal is variable and will change if the Prime Rate changes. This rate fluctuates and your APR could go up or down depending on the Prime Rate.

The Prime Rate is a benchmark that most banks use to set rates on consumer loan products, like the APR on a credit card. The APR on your Petal credit card is the Prime Rate plus a set percentage. This means your APR can rise and fall with the Prime Rate but always remains a fixed percentage above it. The Prime Rate is published in The Wall Street Journal and is based on the federal funds target rate, which is set by what the Federal Reserve thinks is a healthy target rate for lending money. The Prime Rate typically ends up being the federal funds target rate + about 3%.

This means your APR rises and falls with the Prime Rate but always remains a fixed percentage above the Prime Rate.

Requests for APR adjustments are not accepted right now, but we're planning to review accounts periodically for APR adjustments in the future. 

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