Now the Avant Credit Card is an unsecured credit card that was designed for someone with a fair or average credit score or a limited credit history. It requires no deposit and also can help you to build credit with responsible use; it doesn’t offer many other benefits.
The Avant card’s initial credit limit though not the highest but you will find on a starter card beats out the limit found on a number of other unsecured cards for people with less-than-perfect credit. Also, if you use the card responsibly, you may be able to increase your credit limit over time, which can help your credit utilization.
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Avant Credit Card
This card also comes with no deposit requirement and its annual fee is reasonable, less than half the fee you will find on many unsecured credit-building cards. You can also even see if you are preapproved for the card without a hard credit inquiry, allowing you to get a sense of your approval odds without negatively impacting your score.
However, there are cheaper alternatives out there if you are willing to temporarily tie up money in a security deposit. Indeed, a secured card can even give you more control over your credit limit and also help you to easily fast-track your credit-building efforts. Not only that, some secured and unsecured options will offer an ongoing rewards program if building credit isn’t your sole focus.
All in all, this Credit Card mostly makes sense as a temporary stop-gap while you work on your credit. If you use the credit card responsibly and also manage to boost your score, you can then apply for a more lucrative cash back or rewards card.
What Are The Advantages And Disadvantages?
Pros
- Applicants can simply qualify with fair or average credit, which is not always common with a potentially no annual fee unsecured card.
- Builds or create credit history with responsible use by reporting to all three major credit bureaus.
- The card charges no foreign transaction fees so you can use it abroad safely.
- This card does not even require a security deposit, saving you money upfront.
- Has a decent $300 to $1,000 credit limit for an unsecured credit-building card.
- It provides prequalification with no risk to your credit score, setting it apart from other unsecured cards.
Cons
- It Charges an annual fee of ($0 to $59, depending on the factors such as your creditworthiness) that can be higher than alternative cards.
- Unlike rival cards with lower costs, the card offers no rewards program.
- Does not provide specific credit-building features like competitors do, such as an increased credit limit after an automatic account review.
- Has some rewarding, lower-cost cards are available with fair credit for you.
Here is a deeper look into the current card offer
Quick highlights
- Rewards rate: N/A
- Welcome offer: N/A
- Annual fee: $0 to $59, depending on your creditworthiness
- Purchase intro APR: N/A
- Balance transfer intro APR: N/A
- Regular APR: 26.49 percent to 29.99 percent (variable)
Current Sign-Up Bonus
There is no current sign-up bonus or a welcome offer with the Avant Credit Card. But this is the case where with most starter or credit-building cards, it is still disappointing considering the card has an annual fee.
This card has a relatively low initial cost of ownership, requiring no deposit at all and also carrying reasonable fees given it is an unsecured product, a sign-up bonus or ongoing rewards would boost its value considerably.
The sign-up bonuses are not entirely unheard of on cards available at this credit level, either. But for Discover it® Secured Credit Card, for example, does not only earns 2% cash back at gas stations and also restaurants on your first $1,000 in combined spending per quarter and 1% back on everything else, but it also matches all the cash back you have earned at the end of your first year.
Since the card charges no annual fee, you can actually make money while building credit with responsible use. The Avant Credit Card provides no such wiggle room since there is no way to save on purchases to offset the card’s annual fee.
Other Cardholder Perks
The Avant Credit Card was simply designed to help cardholders who have no credit history or a middling credit score build or create their credit with a credit card, so while it can be useful in that way, you should not expect much in the way of perks and also cardholder benefits, which is fairly common for cards in this category.
That said the card reports to all three national credit bureaus and also charges no foreign transaction fee. In addition, the issuer might take into account more than just your credit score (such as your bank account balance) when evaluating your application.
Reports to Major Credit Bureaus
As the cardholders use the Avant Credit Card, their payment history and also credit utilization are been reported to the major credit bureaus. In other by keeping credit utilization low and also making the payments on time and in full, cardholders can potentially boost their credit scores, also establish positive credit history and then qualify for more lucrative cards down the line.
While reporting to all three bureaus is the bare minimum you must then expect from a credit-building card, some lower-tier cards only report to one or two bureaus.
No Foreign Transaction Fees
The Avant Credit Card charges no foreign transaction fees at all, making it a fair choice for cardholders who have planned to spend abroad. Many of the credit cards charge you a fee that is around 3 percent of each transaction you make overseas, including some of the best credit cards on the market.
While it may not be a game-changer if you are on the fence about which credit-building card to go with, it is then certainly a tick in favor of the Avant Credit Card.
No Security Deposit
Now unlike secured credit cards, an unsecured card like the Avant card does not require a security deposit upfront. While all the deposits are refundable once you choose to close your account, they can be a roadblock if you don’t have much cash on hand or would rather just avoid tying up money for several months.
Pre-Qualify With Only a Soft Pull
You can simply check if you prequalify for the Avant card without recording a hard credit inquiry on your credit report. Also, while it is no guarantee of approval, preapproval or prequalification allows you to get the sense of your chances before you put your credit score at risk by applying.
To simply view if you have good odds of approval, just try out the prequalification tool on Avant’s website or to use Bankrate’s CardMatch tool to see if you are a fit for the card based on your credit profile.
Rates and Fees
The variable APR for both purchases and also cash advances with the Avant Credit Card is just 26.49 percent, which is quite high compared to the average credit card interest rate. You will definitely want to avoid carrying a balance with the Avant card.
There is also an annual fee that is up to $59 (depending on your creditworthiness) with this card, which, though is not ideal given there are a few no-annual-fee alternatives like the Petal 2 “Cash Back, No Fees” Visa® Credit Card, is reasonable for an unsecured credit-building card.
Some comparable, and unsecured credit-building cards charge double or even triple that amount, with many hiking these fees after your first year. But, there is a cash advance fee of 3 percent of the cash advance amount or $10, whichever is greater, and also the card carries late fees of up to $39.
How does The Avant Credit Card compare To Other Credit Building Cards?
If you need to create or simply build up your credit score and also have no credit history or poor credit history, a secured credit card will often be your best bet. While you will then have to tie up money in a deposit, you can also get it refunded when you close or upgrade the account.
If you are set on an unsecured card, however, there are a few credit-building options worth considering.
Is Avant Credit Card A Real Credit Card?
The Avant Credit Card is an unsecured credit card designed for someone with a fair or average credit score or a limited credit history. While it does require no deposit and also can help you build credit with responsible use, it doesn’t offer many other benefits.
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