The Avant Credit Card has been designed for individuals with fair credit, providing an opportunity to build their credit without the need for a security deposit. As a reasonably priced unsecured credit card, it offers cardholders essential features while helping them work towards obtaining a better credit standing. This review will explore the various aspects of the Avant Credit Card, focusing on its pros and cons, and whether it is a suitable choice for those looking to improve their credit.
Potential cardholders can pre-qualify for this card without affecting their credit score, and the card reports account information to all three major credit bureaus every month. With a $39 annual fee and no monthly fees, initial fee, or deposit needed, the Avant Credit Card offers a credit limit of $300. It is essential to consider these factors when evaluating the card’s suitability for one’s credit-building journey.
While the Avant Credit Card does not offer any rewards or points, its main selling point lies in assisting individuals in establishing and maintaining good credit. This review will dive deeper into the card’s features, fees, and overall value to help potential users make an informed decision about whether it is the right choice for them.
Overview of Avant Credit Card
The Avant Credit Card is a credit card offered by Avant designed for individuals with fair credit (credit scores between 300 and 669). The card works with the Mastercard network, ensuring worldwide acceptance and an array of basic features that come with Mastercard.
- Regular APR: The Avant Credit Card has a variable APR between 24.99% and 29.99% depending on the cardholder’s creditworthiness.
- Annual Fee: The card comes with a $39 annual fee.
- Pre-qualification: Avant allows potential cardholders to check if they pre-qualify for the card without affecting their credit score.
- Unsecured Card: Unlike some cards targeting people with less-than-stellar credit, the Avant Credit Card does not require a security deposit.
- Credit Reporting: Avant reports card usage and payment history to all three major credit bureaus (Experian, TransUnion, and Equifax), which can help cardholders improve their credit scores over time with responsible use.
- No Deposit Required: As an unsecured card for consumers with fair credit, users won’t need to provide a deposit to open an account.
- Worldwide Acceptance: Being part of the Mastercard network, the Avant Credit Card is accepted by millions of merchants worldwide.
- Customer Support: Avant offers dedicated customer support to assist cardholders with any issues or inquiries.
While the Avant Credit Card has a relatively high APR and annual fee, it may be an appropriate choice for individuals with fair credit who are looking to improve their credit score without the need for a security deposit. By maintaining consistent on-time payments and keeping the balance low, cardholders may see their credit score improve, allowing them to access better credit options in the future.
Eligibility and Approval
The Avant Credit Card is designed for people with fair credit, which generally means a FICO score between 580 and 669. To qualify for this card, you’ll need to have a credit history that demonstrates responsible credit usage and an ability to make consistent, on-time payments. Additionally, having a limited credit history or a few bumps in your credit journey should not be a major hindrance to your eligibility.
Like most credit card issuers, Avant will ask for your personal information like your social security number and address as part of the qualification process. You may also need to provide proof of income or employment to aid in the assessment of your creditworthiness.
Pre-Qualification vs Pre-Approval
Pre-Qualification is a helpful feature provided by Avant that allows you to check your potential eligibility for their credit card without impacting your credit score. This is done through a soft credit check, which does not leave a hard inquiry on your credit report.
The Avant pre-qualification process can give you an idea of your approval odds, thus minimizing the risk of a hard inquiry that could negatively impact your credit score if you’re not approved for the card. Keep in mind, though, that pre-qualification is not a guarantee of approval.
Pre-Approval, on the other hand, requires a hard credit check and is a more concrete sign of your eligibility for the Avant Credit Card. While pre-approval usually indicates a high likelihood of approval, there is still a chance that your application could be ultimately denied based on a deeper examination of your credit history and other factors.
The Avant Credit Card is a solid option for those looking to build or rebuild their credit while having access to an unsecured credit card. By understanding the qualification process, and the differences between pre-qualification and pre-approval, you’ll be better prepared to navigate the application process and work towards improving your credit score.
Pricing and Fees
The Avant Credit Card charges an annual fee of $39. This fee is slightly higher than the average annual fee among all credit card offers, which is $21.65. However, the Avant Card is less expensive than most unsecured credit cards for people with bad credit, as those cards tend to have even higher annual fees and additional charges such as initial fees and monthly fees.
APR and Interest Rates
The card has a Regular APR of 29.99% (variable), which is on the higher side compared to many credit cards. It is essential for cardholders to be aware of the high APR, as carrying a balance on this card can lead to significant interest charges. The variable APR indicates that it is subject to change based on the market prime rate.
- Late Fee: The Avant Credit Card may charge a late fee if the cardholder fails to make on-time payments. It is important to pay the balance in full each month to avoid late fees and additional interest charges.
- Penalty APR: Although not explicitly mentioned in the search results, some credit cards may impose a penalty APR if the cardholder is late on payments or exceeds their credit limit. This higher interest rate can last indefinitely or for a particular duration, depending on the card issuer’s terms and conditions.
- Foreign Transaction Fees: One of the benefits of the Avant Credit Card is that it doesn’t charge any foreign transaction fees. This feature makes it convenient for cardholders to use the card while traveling abroad without incurring additional costs.
- Cash Advance and Cash Advance Fee: Details about cash advances and cash advance fees were not provided in the search results. However, it’s essential for cardholders to be aware that cash advances typically come with higher interest rates and fees than regular purchases, so it’s crucial to use them sparingly.
To avoid excessive fees and interest charges, it’s vital for Avant Credit Card users to pay their balance in full each month, make timely payments, and be vigilant about cash advances and other potential fees associated with the card.
Using the Avant Credit Card Responsibly
The Avant Credit Card is a great choice for individuals with fair credit who are looking to improve their credit score. Because it is an unsecured credit card, there is no need for a security deposit. By making responsible use of the card, such as timely payments and keeping a low balance, cardholders can work to build their credit. Avant reports to all three major credit bureaus, so responsible use of the card will be reflected in the cardholder’s credit report.
Credit Utilization Ratio
One key factor in building credit is maintaining a low credit utilization ratio. This ratio is calculated by dividing the total balance owed on the card by the card’s credit limit. A lower utilization ratio is more favorable and demonstrates responsible use of the card. To help maintain a low credit utilization ratio, avoid making large purchases on the card, pay off outstanding balances regularly, and try not to exceed 30% of the card’s credit limit.
Establishing a strong payment history is another crucial aspect of using the Avant Credit Card responsibly. By making at least the minimum payment on time each month, Avant cardholders can demonstrate their creditworthiness to the credit bureaus, ultimately leading to an improved credit score. In some cases, cardholders may become eligible for credit line increases based on their positive payment history. To make tracking and managing payments more straightforward, consider setting up automatic payments or setting due date reminders to avoid missing any payments.
Alternatives to Avant Credit Card
Secured vs Unsecured Credit Cards
Unsecured credit cards do not require a security deposit and are issued based on your creditworthiness. They are generally easier to obtain and often provide more benefits than secured cards. Secured credit cards, on the other hand, require a refundable deposit, usually equal to your credit limit. They are designed for those with limited or no credit history, or those trying to rebuild credit. Both types of cards report to the three major credit bureaus, helping to build your credit over time.
When considering alternatives to the Avant Credit Card, it is essential to evaluate both secured and unsecured options, depending on your credit situation.
Competitor Credit Cards
1. Capital One Platinum Credit Card:
- Annual Fee: $0
- Regular APR: 26.99% (Variable)
- Benefits: No annual fee, access to a higher credit line after making your first five monthly payments on time, and no foreign transaction fees.
The Capital One Platinum Credit Card is a solid alternative for those looking for an unsecured credit card with no annual fee. It offers a chance for credit limit increases and access to Capital One’s CreditWise tool.
2. Capital One QuicksilverOne Cash Rewards Credit Card:
- Annual Fee: $39
- Regular APR: 26.99% (Variable)
- Benefits: 1.5% cash-back on all purchases, access to a higher credit line after making your first five monthly payments on time, and no foreign transaction fees.
The Capital One QuicksilverOne Cash Rewards Credit Card is another unsecured credit card option that offers rewards on everyday purchases, making it an appealing choice for those looking to earn cash back.
Before deciding on a credit product, always compare the features, benefits, and costs associated with each option. The Avant Credit Card might not be the best choice for everyone, but there are several competitors in the market that cater to different credit needs. By considering both secured and unsecured options, you can make an informed decision and choose the card that is most suitable for your financial situation.
Customer Support and Resources
Website and Mobile App
The Avant Credit Card is issued by WebBank and provides a user-friendly website for cardholders to access their account information, make payments, and monitor their credit card usage. The website offers a range of online banking features and helpful resources for customers, including credit education and tips for improving their credit score.
For added convenience, Avant has a mobile app available for both Android and iOS devices, allowing cardholders to manage their accounts on the go. Users can securely access their account information, view transactions, and make payments directly from the app.
If you need assistance or have questions regarding your Avant Credit Card, customer service is available to help. You can reach their support team by phone at 855-752-7012. While no specific email address was found for customer inquiries, their website contains a contact form for any questions or concerns.
As an Avant Credit Card holder, it is important to be aware of the three major credit bureaus: Equifax, Experian, and TransUnion. Avant reports to all three bureaus, allowing you to build your credit history and improve your credit score. You can regularly check your credit report from these bureaus through credit monitoring platforms such as Credit Karma to stay informed and monitor any changes in your credit profile.
Please note that since the Avant Credit Card is an unsecured card, no security deposit is required to open an account. However, your income and other financial factors will be considered during the application process to determine your eligibility for the card.
Although the Avant Credit Card caters to a wide demographic, some state restrictions may apply. To be precise, residents of Iowa, Vermont, West Virginia, and Wisconsin are currently unable to access this credit card option. Keep this in mind when considering your credit card choices.
Fraud Liability Protection
When using the Avant Credit Card, rest assured that you are covered in case of unauthorized transactions. The card offers fraud liability protection, which means you won’t be held responsible for fraudulent charges made with your card.
This feature can provide peace of mind as you work towards achieving your financial goals, such as paying off loans, building a savings account, or starting a mortgage.
Having the Avant Credit Card as a starter card might be a helpful stepping stone for those seeking to build their credit and explore other credit card options. The fraud liability protection adds an extra layer of security for users, making it an attractive option for those new to the credit card world.
Frequently Asked Questions
What is the starting limit?
The starting credit limit for the Avant Credit Card may vary depending on your specific financial situation and creditworthiness. It’s essential to remember that credit card issuers consider factors like credit score, income, and debt levels when determining your initial credit limit.
What credit score is required?
The Avant Credit Card is generally designed for individuals with fair credit. Typically, a credit score between 580 and 669 is considered fair. This range, however, is not a hard requirement, as other factors may also come into play when assessing your application.
Is it easy to get approved?
Approval for the Avant Credit Card may be easier for people with fair credit compared to other credit cards that require good to excellent credit scores. However, approval is still subject to creditworthiness and other factors, so there is no guarantee of approval for any individual.
What is the minimum credit limit?
As with the starting limit, the minimum credit limit for the Avant Credit Card depends on your financial situation and creditworthiness. Credit card issuers will consider various factors to determine the appropriate credit limit for your account.
Where can I use the card?
The Avant Credit Card can be used anywhere that accepts Mastercard, both in-person and online. This includes a wide range of merchants worldwide, making it a convenient option for everyday purchases and travel-related expenses.
Are there any cashback rewards?
The Avant Credit Card does not offer any cashback rewards or points programs. Its primary purpose is to help individuals with fair credit build their credit score and improve their creditworthiness over time through responsible use.