Is the Avant Credit Card Good? A Seasoned Expert’s Deep Dive

The short answer: The Avant credit card is generally not a good choice for those with excellent or even good credit. It’s primarily targeted towards individuals with fair to average credit who are looking to rebuild their credit score. While it can be a stepping stone to better credit options, its high APR, fees, and limited rewards make it less attractive compared to other cards available in the market. Think of it as a tool of last resort, deployed strategically for credit repair, rather than a primary card for everyday use.

Unpacking the Avant Credit Card: A Closer Look

The Avant card, issued by WebBank, is designed to provide access to credit for those who might not qualify for more traditional credit cards. This accessibility comes at a cost, however. Understanding the nuances of its features, fees, and benefits is crucial before deciding if it’s the right fit for your financial situation.

Key Features to Consider

• Credit Limit: Avant offers credit limits typically ranging from $300 to $2,000. The exact limit you receive will depend on your creditworthiness and income.
• APR (Annual Percentage Rate): This is where things get tricky. Avant’s APR is often significantly higher than other credit cards. It can be upwards of 30%, meaning you’ll pay a substantial amount in interest if you carry a balance.
• Fees: Avant can charge an annual fee, although many users report not having one. They do charge late payment fees and returned payment fees. There’s also a cash advance fee, which should be avoided altogether given the already high APR.
• Rewards: This is a major downside: Avant offers no rewards program. You won’t earn cash back, points, or miles for your spending.
• Credit Reporting: Avant reports your payment activity to the three major credit bureaus (Equifax, Experian, and TransUnion). This is crucial for rebuilding your credit, as consistent on-time payments can positively impact your score.
• Mobile App and Online Access: Avant provides a user-friendly mobile app and online portal where you can track your spending, make payments, and manage your account.
• Security Features: Avant offers security features like fraud monitoring and the ability to freeze your card if it’s lost or stolen.

Who is the Avant Card For?

The Avant card is primarily suitable for individuals who:

• Have fair to average credit and are struggling to qualify for other credit cards.
• Need a secured credit card alternative (Avant is unsecured, meaning you don’t need to put down a deposit).
• Are committed to responsible credit usage, including making on-time payments and keeping their balance low.
• Understand the high APR and fees and are willing to accept them as the cost of rebuilding their credit.

Alternatives to the Avant Card

Before applying for the Avant card, it’s essential to explore alternatives that may offer better terms and benefits. Consider these options:

• Secured Credit Cards: These cards require a security deposit, which typically serves as your credit limit. They’re a great option for those with limited or poor credit and often come with lower APRs than unsecured cards like Avant.
• Credit Union Credit Cards: Credit unions often offer credit cards with lower interest rates and fees compared to traditional banks.
• Retail Store Credit Cards: These cards can be easier to obtain, but they typically have high APRs and can only be used at the specific retailer. Use with caution.
• Other Unsecured Credit Cards for Fair Credit: Several other unsecured credit cards cater to individuals with fair credit. Compare APRs, fees, and rewards programs to find the best fit.

Making the Right Decision

Ultimately, the decision of whether or not the Avant credit card is “good” depends on your individual circumstances and credit profile. If you have fair credit and are looking for a way to rebuild your score, the Avant card could be a viable option, but only if you use it responsibly and can’t qualify for something better. Be sure to compare it to other cards in the market before applying, paying close attention to APRs, fees, and rewards programs. Remember, responsible credit usage is key to maximizing the benefits and minimizing the risks associated with the Avant card.

Avant Credit Card: 12 Frequently Asked Questions (FAQs)

1. What credit score is needed for the Avant credit card?

Avant typically targets individuals with a fair to average credit score, generally in the range of 600 to 700. While there’s no guaranteed minimum score, having a credit score within this range significantly improves your chances of approval. Keep in mind that your overall credit profile, including your payment history and debt-to-income ratio, will also be considered.

2. Does the Avant card help build credit?

Yes, the Avant card can help you build or rebuild your credit. Avant reports your payment activity to the three major credit bureaus (Equifax, Experian, and TransUnion) on a regular basis. Making on-time payments and keeping your credit utilization low (ideally below 30%) can positively impact your credit score over time.

3. What is the APR on the Avant credit card?

The APR on the Avant credit card can vary significantly based on your creditworthiness. It is generally a high APR, often ranging from 24.99% to 35.99%. Always check the specific APR offered to you before accepting the card. Paying your balance in full each month is essential to avoid incurring interest charges.

4. Is there an annual fee for the Avant credit card?

Avant can charge an annual fee. However, many users report not having an annual fee. The presence and amount of the annual fee will depend on your credit profile. Carefully review the terms and conditions before applying to determine if an annual fee applies to your account.

5. Does Avant offer any rewards or cash back?

No, the Avant credit card does not offer any rewards or cash back. This is a significant drawback compared to other credit cards that offer points, miles, or cash back on purchases. If earning rewards is important to you, consider exploring other credit card options.

6. How can I apply for the Avant credit card?

You can apply for the Avant credit card online through their website. The application process typically involves providing personal and financial information, including your Social Security number, income, and employment details. Avant will then perform a credit check to determine your eligibility.

7. Can I increase my credit limit on the Avant card?

Yes, you may be eligible for a credit limit increase on your Avant card after a period of responsible usage. Avant typically reviews accounts periodically to determine eligibility for increases. You can also request a credit limit increase through the mobile app or online portal.

8. What are the late payment fees for the Avant card?

Avant charges late payment fees if you fail to make your minimum payment by the due date. The specific amount of the late payment fee can vary, but it’s typically around $25 to $39. To avoid late payment fees, set up automatic payments or reminders to ensure you pay your bill on time.

9. How does Avant compare to other credit cards for fair credit?

Avant is comparable to other credit cards for fair credit in terms of its target audience, but it often lags behind in terms of APR and rewards. Some other cards may offer lower APRs or cash back rewards, making them potentially more attractive options. It’s essential to compare Avant to other cards based on your specific needs and financial situation.

10. Is the Avant credit card a secured or unsecured card?

The Avant credit card is an unsecured credit card. This means you don’t need to put down a security deposit to open the account. This is a significant advantage for those who may not have the cash available for a secured card.

11. What are the customer service options for Avant cardholders?

Avant offers various customer service options, including phone support, email support, and a comprehensive FAQ section on their website. You can typically reach customer service representatives during business hours to address any questions or concerns you may have.

12. Can I use the Avant credit card for cash advances?

Yes, you can use the Avant credit card for cash advances, but it’s generally not recommended. Cash advances come with a high APR and cash advance fees, making them a very expensive way to borrow money. Avoid using your Avant card for cash advances whenever possible.