Are you looking to rebuild your credit but don’t qualify for most credit cards? The Avant Credit Card may be a great option for you.
With its reasonable fees and the ability to graduate to better terms over time, the Avant card can help you establish positive payment history and boost your credit score.
In this post, we’ll cover everything you need to know about the Avant Credit Card, including:
Avant Credit Card Overview
The Avant Credit Card is specifically designed for people with limited credit history or low credit scores. It offers an easy application process, transparent fees, and personalized service.
With responsible use, the Avant card can help you build your credit over time. As your score improves, you may qualify for better credit limits and lower interest rates.
The Avant card is an unsecured credit card, meaning it doesn’t require a security deposit. The credit limit typically ranges from $300 – $1,000 for new cardholders.
Avant Credit Card Benefits
Considering its target demographic, the Avant Credit Card offers decent benefits:
No Late Fee on First Missed Payment: You get a free pass on your first late payment with the Avant card. After that, the fee is $25.
Reporting to All Three Credit Bureaus: Avant reports your payment history to Equifax, TransUnion, and Experian. Responsible use can boost your credit score with all three agencies.
Pre-Qualification Tool: You can check if you’re pre-qualified without impacting your credit score. Pre-qualification gives you an idea of your approval odds before applying.
Online Account Access: Avant offers 24/7 account access via your online dashboard. You can manage payments, check your balance, view statements, set up alerts, and more.
U.S.-Based Customer Service: Many card issuers outsource their customer service overseas. Avant has U.S.-based customer service available to answer your questions.
Credit Education: Avant provides credit education resources to help you understand your credit report and how different actions impact your score.
While the Avant card doesn’t offer robust rewards or sign-up bonuses, its core benefits of credit building and education are helpful for rebuilding credit.
Avant Credit Card Fees
The Avant Credit Card has two sets of fees – one for the secured card and one for the unsecured card.
Here are the fees for the unsecured Avant Credit Card:
- Annual Fee: $39 – $95
- Monthly Servicing Fee: $0 – $9.95
- Balance Transfer Fee: 4% or $10 minimum
- Cash Advance Fee: 5% or $10 minimum
- Foreign Transaction Fee: 0%
- Late Payment Fee: $25
- Returned Payment Fee: $25
And here are the fees for the secured Avant Credit Card:
- Annual Fee: between $0 and $59 depending on your credit score
- Monthly Servicing Fee: $0 – $9.95
- Balance Transfer Fee: N/A
- Cash Advance Fee: N/A
- Foreign Transaction Fee: 0%
- Late Payment Fee: $0
- Returned Payment Fee: $0
The secured card requires a refundable security deposit of $200 – $1,000. This deposit becomes your initial credit limit.
As you can see, the secured card has fewer fees, but the deposit is an added cost. The unsecured card has higher fees but doesn’t require a deposit.
Overall, the Avant Credit Card’s fees are reasonable given the card’s niche. However, users with excellent credit can likely find cards with lower fees.
Avant Credit Card Eligibility
The Avant Credit Card is designed for people with “credit challenges.” This includes those with limited credit history, low credit scores, or other negative marks like collections or bankruptcies.
Here is a general overview of who may qualify for the Avant card:
- Limited credit history: You’re more likely to be approved if you have some credit history established. However, first-time applicants may also qualify in some cases.
- Low credit scores: Applicants with credit scores below 600 will have the best approval odds for the Avant card. Scores as low as 550 may be approved.
- Past credit mistakes: The Avant card can be an option if you have late payments, collections, charge-offs, bankruptcies, or other negatives on your credit report.
- Low or no income: Unemployed, retired, or low-income applicants may still qualify in some circumstances. However, a steady income source improves your approval chances.
Avant uses a customized underwriting model that looks beyond traditional credit scoring. They evaluate your entire profile including income, existing debts, and banking history.
Check your pre-qualification odds first before completing the full application. The pre-qualification is a soft credit check that won’t impact your score.
How to Apply for an Avant Credit Card
Ready to apply for the Avant Credit Card? Here is a step-by-step guide to the application process:
- Check your pre-qualification status on Avant’s website. This gives you an idea of your approval odds before applying.
- Submit the online application. It takes about 10 minutes to complete. You’ll need personal and financial information like your income, housing payments, and banking details.
- Get a decision in minutes. Avant leverages machine learning to process applications rapidly. You’ll know the result as soon as you submit the application.
- Accept your offer if approved. Be sure to carefully review the credit limit, APR, and fees before accepting. Also read the cardholder agreement terms.
- Set up online account access. Once approved, register your account on Avant’s online portal or mobile app. This allows you to manage your new card.
- Receive your card within 7-10 days. Avant ships credit cards quickly after approval. Activate your card as soon as it arrives.
After getting your new Avant card, use it responsibly to build positive payment history. Pay your bill on time and in full each month if possible.
Tips for Using Your Avant Credit Card Responsibly
The key to credit card success is using it responsibly. Here are some tips to make the most of your new Avant Credit Card:
- Pay on time: Payment history is the biggest factor in your credit score. Set up autopay or payment reminders to avoid late fees
- Pay in full: Pay off your balance each month to avoid interest charges. If that’s not possible, pay more than the minimum.
- Use sparingly: Keep your utilization low by only using a small portion of your total credit limit. Using less than 30% is ideal.
- Don’t max out: Avoid charging your card up to the limit. High utilization can hurt your score.
- Check statements: Review transactions and statements regularly to catch errors quickly. Report unauthorized charges immediately.
- Consider balance transfers: Once you’ve demonstrated on-time payments, you may qualify to transfer high-interest balances to your Avant card.
- Practice good habits: Making all credit card payments on time helps your overall credit health beyond just the Avant card.
Follow these tips and the Avant card can help build your credit back up over time. The key is developing and sticking to responsible long-term habits.
Alternatives to the Avant Credit Card
While the Avant Credit Card is a solid option, it’s not the only credit card suitable for bad credit. Here are a few alternatives worth considering:
Surge Mastercard® – Also issued by Celtic Bank, it offers cash back rewards and tools to monitor your credit.
First Access Visa® Credit Card – Accepts applicants with bad credit or no established credit. Must enroll in credit education program.
Credit One Bank® Platinum Visa – For applicants with poor credit. Offers 1% cash back rewards on eligible purchases.
Discover it® Secured Credit Card – Uses an initial security deposit to establish your credit line. Earns cash back rewards.
Conclusion
The Avant Credit Card lives up to its purpose – helping lower FICO borrowers responsibly build positive history. Applicants needing temporary higher rates ultimately win by gaining access to rebuild money management habits.
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