Unless you live in Colorado, Iowa, Vermont, West Virginia, or Wisconsin, the AvantCard Credit Card may give an alternative avenue to continue creating your credit history if your credit card options are limited due to a lack of credit. In some states, the product is not available.
The card is issued by WebBank, a Utah-based state-chartered industrial bank. It does not demand a security deposit, but it does charge a $39.00 annual fee.
That’s on the low end, but there are some no-annual-fee cards for people with bad credit that provide more. If you can afford a security deposit upfront, for example, a secured credit card with no annual fee would be a better option. If you can’t afford a deposit, there are a variety of other credit cards that give points and other benefits.
And if you have fair credit (usually a FICO score of at least 630) rather than bad or no credit, you might be able to get even better deals.
Basics of the AvantCard Credit Card
Avant, a Chicago-based online lending firm, is providing credit cards. The AvantCard Credit Card joined a small but growing group of alternative credit cards that don’t rely primarily on credit ratings to determine eligibility when it was launched in November 2017.
Avant’s issuing bank, like other of its competitors, uses an underwriting model that considers atypical characteristics such as your bank account balance in addition to your credit score. To qualify, you’ll need a Social Security number, and email address, a phone number, and an address.
The following features and perks are available to cardholders:
- Starter/alternative card type.
- The annual charge is $39.
- There is no sign-up incentive.
- APR: The current variable APR is 25.99 percent.
- There is no penalty APR, but you may be charged a late fee of up to $35.
- There is no charge for international transactions.
- Depending on creditworthiness, borrowing limits range from $300 to $1,000.
TransUnion, Equifax, and Experian are the three major credit bureaus to which we report.
Why would you want to apply for the AvantCard Credit Card?
There is no requirement for a security deposit
The AvantCard Credit Card is an unsecured credit card, which means it does not demand a security deposit as collateral, unlike many other cards for people with bad credit. However, there is a $39.00 annual cost.
Pre-qualification is a procedure for determining whether or not a candidate is qualified
You must go through a pre-qualification process before applying for this card, which will not affect your credit score.
It’s a hint at your chances of approval, but it’s not a firm “yes.” It provides you with phrases that are unique to you. If you like what you see, you can apply in person, which will result in a “hard pull” on your credit record.
Three credit bureaus have been notified
You’ll need a card that reports to at least one of the three main credit agencies, which collects the information required to build credit scores if you have fair or limited credit.
The AvantCard Credit Card sends information to all three credit bureaus — TransUnion, Equifax, and Experian — which will keep track of your payments. It can help you get a decent credit score if you make your payments on time.
A review of your account regularly
Your account is reviewed regularly by the issuer to see if your credit limit can be increased. It can work to your advantage when you’re building credit, as long as you don’t exceed your credit limit.
Your credit utilization ratio, which compares your overall debt to your entire credit limits, is an important element in determining your credit score. It’s recommended to keep your credit usage ratio modest, with no more than 30% of your available credit being used.
Features that make traveling easier
Because the AvantCard Credit Card is a Mastercard, it will be accepted all around the world. It also doesn’t charge fees for international transactions (generally 1 percent to 3 percent of the amount charged). If you travel frequently, the card can save you money.
Why would you want a new credit card?
It charges a yearly fee
There are no annual fees on many of the best-secured credit cards. Alternative cards with no annual fee and no security deposit are available for persons with bad credit or no credit.
Consider the Petal® 2 “Cash Back, No Fees” Visa Credit Card, which is similarly offered by WebBank and advertises itself as a low-cost choice for those seeking to establish credit.
Petal’s issuer also assesses creditworthiness using its underwriting model, which takes into account factors such as income, consumption, and savings. The annual cost is zero dollars.
It isn’t rewarded in any way
The purpose of a starter card is to develop a credit history. Although rewards aren’t as prominent as they once were, some starter cards do provide them.
A rewards program is available with the Petal 2 “Cash Back, No Fees” Visa Credit Card, for example. The Deserve Pro Mastercard is no exception.
For purchases up to $500 every billing cycle, it earns 3% cashback on travel and entertainment and 2% cashback at restaurants (combined). It earns 1% cashback on all other purchases.
You can even locate rewards-earning possibilities among big lenders if you have at least fair credit. The Capital One QuicksilverOne Cash Rewards Credit Card gives you 1.5 percent back on everything you buy. It has a yearly charge.
However, if you complete your first five monthly payments on time, it may get you access to a larger credit line.
It has a ‘payment due date that is set in stone
The AvantCard Credit Card, unlike some other cards, does not allow you to change your “payment due” date to a more convenient period. The Capital One Platinum Secured Credit Card, on the other hand, allows you to select a convenient payment date.
It necessitates a security deposit, which you will be refunded if you have a solid payment history. Those that qualify, however, may be able to invest as little as $49, $99, or $200. If necessary, you can pay the deposit in installments. If you pay your bills on time, you may qualify for a bigger credit line in as little as six months.
The Capital One Platinum Credit Card does not require a security deposit if you have at least fair credit.
A lower credit limit
The AvantCard Credit Card’s credit limit range is adequate for a beginner card, but some alternatives, such as the Deserve® Pro Mastercard and the Petal® 2 “Cash Back, No Fees” Visa® Credit Card, provide credit limits of up to $10,000. Consider these possibilities if you desire more spending freedom.
Are you eligible for the AvantCard Credit Card?
Although the AvantCard Credit Card does not need a security deposit, you may be better off paying one. If you keep a solid payment history on a secured credit card, the security deposit will eventually be returned to you. With an annual fee, this is not the case.
Alternative credit cards for restricted credit and credit cards for fair credit may offer greater features and benefits if you don’t want to pay a security deposit or an annual fee.