Paying just the minimum balance due each month on your credit card can lead to significant interest charges. Petal, a leading fintech credit card issuer, is hoping to promote better credit usage through its Pay More Than the Minimum campaign. Here is what you need to know about the Petal sweepstakes, who is eligible, and how to take part:
Petal Pay More Than the Minimum Promotion
Petal is encouraging its cardholders to pay more than the minimum on their credit card statement balances. According to the company, “Petal members who pay more than the minimum on their monthly billing cycle will be entered into a sweepstakes to have their credit card bill paid off, up to $500.”
All an eligible Petal credit cardholder needs to do is pay at least one penny more than their minimum balance due on their billing statement for their December 2020 Petal credit card. Doing so entitles them to an entry into a sweepstakes, with 100 card members winning the big $500 prize.
The sweepstakes runs from January 7, 2021 and ends at 10:59:59 PM Eastern Time (ET) on January 26, 2021. Petal will announce 50 sweepstakes winners in January, and the remaining 50 in February.
Cardholders can also enter the sweepstakes by completing and submitting a designated online survey through SurveyMonkey during the promotional period.
Why Paying More Than the Minimum Is So Important
Paying only the minimum balance due can save you from missed payments and keep your account in good standing. This practice, however, can also lead to mounting interest payments and increased debt.
Virtually all credit card experts agree that paying more than your minimum balance due is essential for a healthy credit score. When you avoid paying down your debts, you may save money in the short-term, but you’ll spend more in the long-term.
Paying off credit card interest with only the minimum payment can take years – and cost you plenty. This practice can also eat into your available credit, raise your credit utilization, and lower your credit score.
Petal is a leading fintech company that seeks to provide greater financial opportunities for millions of American consumers. The company currently offers two credit cards: the Petal 1 “No Annual Fee” Visa Credit Card and the Petal® 2 “Cash Back, No Fees” Visa® Card. Both are issued through WebBank. The cards feature no annual fees, no foreign transaction fees, and better interest rates than many other subprime credit cards.
Related Article: Petal Launches Rebranded Petal 2, New Petal 1 Cards