Avant Credit Card: Rewards, Fees, Pros and Cons, How to Apply

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This is a comprehensive guide to the Avant Credit Card.

The best part?

I’ll teach you everything you need to know to decide if the Avant Card is right for you, even if you have limited credit history.

Getting approved for credit cards can be frustrating when you have poor credit or no credit history. But the good news is Avant offers credit lines without requiring a security deposit like other cards.

If you want to build your credit and access an unsecured card with fast approval decisions, then this guide covering the fees, pros, cons and application process of the Avant Card is for you.

Ready to learn all about the Avant Credit Card and see if it meets your needs? Let’s dive in.

Highlights and Features

Here are some of the main highlights and features of the Avant Credit Card:

• Credit Lines

The Avant card offers starter credit lines ranging from $300 to $3,000. Your specific credit limit will depend on your creditworthiness. Those new to credit or rebuilding credit are more likely to receive lower limits at first. Responsible use of the card can lead to credit line increases over time.

• No Security Deposit

Unlike secured credit cards, the Avant card does not require any upfront security deposit, saving you money. However, you need to have fair to good credit (credit scores generally 580-740) to qualify.

• Credit Reporting

The Avant card reports your payment history to all three major consumer credit bureaus – TransUnion, Equifax, and Experian. Responsible credit card usage is a great way to build your credit. Making on-time payments will help improve your credit score as the positive information gets added to your credit reports.

• Online Account Access

Avant offers online account access and mobile app so you can manage your credit card conveniently from your phone or computer. You can check your balance, make payments, set up alerts and more.

• Customer Service

If you have any questions or issues, U.S.-based customer service is available by phone, email or chat. Many other credit cards outsource customer service overseas, so it’s nice having the option to speak to someone local.

• Pre-qualification

Applying for new credit can ding your credit score temporarily. With Avant, you can check if you pre-qualify first with no impact to your score. Pre-qualification gives you an idea of your approval odds before completing a full application.

• No Foreign Transaction Fees

Some credit cards charge foreign transaction fees up to 3% when you use the card abroad. The Avant card has no foreign transaction fees, so it’s a solid travel companion.

How the Avant Credit Card Works

The Avant Credit Card is an unsecured, revolving credit card. Here are some key points about how it works:

• As an unsecured card, it does not require any deposit to open the account. However, you need fair to good credit for approval.
• It offers a revolving credit line rather than a fixed loan amount. Your credit limit is replenished as you make payments.
• The card can be used anywhere Visa is accepted worldwide – in-store, online, over the phone, etc.
• Like other credit cards, it offers a grace period on purchases. You get 20-25 days to pay your balance before interest starts accruing.
• Minimum monthly payments are required, usually 2.5% of your balance or $15, whichever is greater.
• Making just the minimum payment will result in interest charges and take longer to pay off your balance. Paying in full each month avoids interest and is best for credit building.
• Online account management, mobile app and U.S. customer service make the card easy to use responsibly.

As an unsecured card aimed at those looking to build credit, the Avant card works much like other credit cards. Using it properly by paying on time and keeping balances low will help strengthen your credit standing over time.

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Rewards, Cashbacks, and Sign-Up Bonus

The Avant Credit Card is best suited for credit building and does not offer a traditional rewards program or sign-up bonus. However, responsible card usage can “reward” you with an improved credit score and increased creditworthiness.

With average credit card interest rates around 16% APR, avoiding interest by paying your balance in full each month is like getting a 16% return. The long-term savings from not paying credit card interest can really add up.

Even though it lacks a rewards program, the Avant card can indirectly reward users in other ways:

• Credit line increases – Responsible card management may prompt Avant to increase your credit limit, allowing you to make larger purchases and improve your utilization ratio.
• Graduating to other cards – Building your credit with the Avant card improves your chances of qualifying for cards with better terms, rewards programs and sign-up bonuses down the road.
• Better loan terms – A higher credit score earned by using the Avant card prudently can qualify you for lower interest rates and fees on mortgages, auto loans and other borrowing.

So while the Avant Credit Card does not offer traditional rewards, you can be rewarded handsomely in other ways by using it wisely as a credit building tool. The long-term financial benefits can easily outweigh any sign-up bonuses or cash back from other cards.

Interest Rates & Fees of Avant Credit Card

Here are the key rates, fees and costs associated with the Avant Credit Card:

• APR – The variable APR ranges from 29.24% to 35.99% depending on your creditworthiness when approved. This APR applies to purchases, balance transfers and cash advances.
• Annual Fee – The annual fee is $39 to $59 depending on your qualifications at account opening. However, this fee is waived the first year.
• Late Fee – The late fee is up to $39.
• Foreign Transaction Fee – None. The Avant Card does not charge foreign transaction fees.
• Balance Transfer Fee – Either $10 or 3% of the amount of each transfer, whichever is greater.
• Cash Advance Fee – Either $10 or 5% of the amount of each cash advance, whichever is greater.
• Returned Payment Fee – Up to $39.

As you can see, the APR on the Avant card is relatively high compared to other cards. This is because the card is designed for consumers with limited or rebuilding credit. The most prudent strategy is paying your balance off in full each month to avoid interest charges. Use the card lightly and make payments on time to avoid fees.

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How to Apply for a Avant Credit Card

Applying for the Avant Credit Card is quick and easy:

1. Check pre-qualification status – To get an idea of your approval odds first, check Avant’s pre-qualification page. It’s a soft credit check with no impact on your score.
2. Submit application – If pre-qualified, submit a full application online at Avant’s website or by phone. Application processing is fast, with decisions in minutes.
3. Provide verification info – If approved, provide any requested ID and income verification. Avant needs to verify your identity and ability to pay.
4. Get your card – Once approved and verified, your Avant Credit Card will arrive by mail within 7-10 business days. Register your account online to manage it.
5. Activate your card – Call or go online to activate your new Avant card as soon as it arrives. Then, you can start using it for purchases.

Applying is quick and easy. Check pre-qualification first to confirm you meet the credit criteria before a hard inquiry is made on your credit reports. If approved, use the card prudently to build credit.

Managing Your Avant Credit Card

Here are some tips for managing your Avant Credit Card responsibly once approved:

• Activate promptly – Activate your card as soon as you receive it to get started with purchases or balance transfers.
• Spend conservatively – Use your new card sparingly at first. Even small charges help build credit, so start small.
• Pay on time – Always make at least the minimum monthly payment before the due date. Set up autopay if possible to avoid late fees.
• Pay in full – Pay off your entire balance each month to avoid interest charges. This builds credit without costing extra.
• Keep utilization low – Using 30% or less of your limit monthly helps your credit score. A $1 monthly charge works if your limit is $300.
• Set up alerts – Use the Avant app to set up custom balance and payment alerts to manage your account responsibly.
• Ask for credit line increases – If you manage the card well for 6+ months, request a higher limit to keep utilization low.
• Monitor your credit – Check your credit reports regularly to make sure the card is being reported properly.

Using these card management tips can maximize the benefits of the Avant card for credit building at little to no cost.

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Where Avant Credit Card Can be Used?

You can use the Avant Credit Card anywhere Visa cards are accepted, including:

• In-store purchases – The Avant Card works at millions of retail locations worldwide that accept Visa cards. Look for the Visa logo at checkout.
• Online shopping – The card can be used to shop at online stores that take Visa. Add it as a payment method to retail sites.
• Over the phone – Providing the card details over the phone allows you to make purchases with retailers that accept Visa.
• Mobile wallets – You can add your Avant Card to digital wallets like Apple Pay and Google Pay to make contactless payments in stores.
• At ATMs – Although not recommended, you can get cash advances from ATMs displaying the Visa logo by using your Avant Card and PIN. Fees apply.
• International travel – Thanks to Visa’s global acceptance, the Avant Card works at millions of locations outside the U.S. as well. No foreign transaction fees.

So anywhere that accepts Visa branded credit cards will welcome the Avant Credit Card. As an unsecured Visa card, it offers wide merchant acceptance for building credit through routine spending.

Pros and Cons of Avant Credit Card

Here is a quick rundown of the key pros and cons to weigh when considering the Avant Credit Card:

Pros

• No security deposit required
• Available to those with limited credit history
• Pre-qualification won’t hurt your credit score
• Credit lines starting at just $300
• Reports to all three major credit bureaus
• Mobile app and U.S.-based customer service
• No foreign transaction fees

Cons

• High APR of 29.24% to 35.99%
• Annual fee of $39 to $59
• No rewards program
• Low initial credit limit of just $300 – $1,000
• Short 10 to 25 day grace period on purchases
• Credit line increases not guaranteed

Overall, the Avant Card can be a useful credit building card for those unable to qualify for less expensive cards with better terms. Use it prudently as a credit starter card. Then you may qualify for a graduate card eventually with more favorable rates and features.

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Avant Credit Card vs Other Credit Cards

How does the Avant card compare to other popular credit cards for poor credit or credit building?

• The Avant Card has no security deposit which sets it apart from secured cards like the Discover it® Secured Credit Card and Capital One Platinum Secured Credit Card.
• However, its fees and APR are higher than the Petal® Visa® Credit Card and the Credit One Bank® Platinum Visa®. But those cards offer lower starting credit limits.
• For rewards, the Credit One Bank card and the Surge Mastercard® offer cash back and other perks the Avant card lacks.
• The Avant card’s credit line increase opportunities help set it apart from other options aimed at applicants with poor or limited credit. Responsible cardholders may qualify for higher limits over time.

Conclusion

The Avant Credit Card can be a helpful starter card for those looking to establish a credit history or rebuild credit from past issues like bankruptcy. It offers an accessible option for those who cannot yet qualify for better unsecured cards with lower rates and more benefits.

Used conscientiously for daily spending while paying balances off every month, the Avant card provides a way to demonstrate responsible usage to lenders and credit bureaus. Just make sure to keep utilization low and make payments on time. Avoiding interest and fees is ideal.

While the high APR and lack of rewards are definite drawbacks, the potential credit score increase you may earn by using it prudently can open doors to other more attractive borrowing options. Apply online easily after pre-qualification.

Frequently Asked Questions