AvantCard Credit Card Review
This article was last updated Apr 16, 2020. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.
If you’re looking for a way to help you establish a credit history or rebuild your credit, take a look at the AvantCard Credit Card, which is issued by WebBank.
We looked at who this card might be good for and how you can use it to build great credit, as well as suggesting an alternative credit-building card that doesn’t charge an annual fee.
AvantCard Credit Card pros
It’s a good card for rebuilding credit. This credit card is aimed at applicants with fair/limited/bad/poor credit. While some cards for people with less-than-stellar credit hit you with a variety of hidden fees, the AvantCard Credit Card is pretty straightforward. It’s a no-frills card with a low annual fee of $39 and with a credit limit that can range from $300 to $1,000.
For those who might have trouble qualifying for other cards, but don’t want to fall into the trap of applying for a subprime credit card that charges a lot of fees, the AvantCard Credit Card could be a lifeline that can help you improve your credit score.
You can check if you prequalify. You can check on Avant’s website to see if you’re eligible for the AvantCard Credit Card, and checking your eligibility doesn’t affect your credit score. The website also offers the option of redeeming an offer that you received in the mail.
This card reports the account and payment activity to the three major credit bureaus — Equifax, Experian and TransUnion — on a monthly basis. So, if you’re practicing responsible credit behavior, the AvantCard Credit Card can help you improve your credit score.
Read our selection of best credit cards for beginners
AvantCard Credit Card cons
Annual fee. While this card has an annual fee of $39, if you’re working to rebuild your credit, the fee may be worth it. However, there are other cards available geared toward rebuilding credit (such as some secured cards) that have no annual fee. And once you build up your credit score to a good or exceptional level, there are a variety of that have excellent rewards and benefits.
High APR. This card’s interest rate is 25.99% variable . While that’s comparable with other cards for consumers with fair/limited/bad/poor credit, you’ll want to avoid carrying a balance to avoid hefty interest charges on this card. If you pay the balance in full each month, you can avoid interest charges.
Not available everywhere. You won’t be able to get the card if you’re a resident of Colorado, Iowa, Vermont, West Virginia or Wisconsin.
Compare it with the Discover it® Secured
For those new to credit who are looking to establish a credit history, or for those who want to rebuild a bad credit profile, a good way to do that is to apply for a secured credit card.
Secured cards require you to put down a security deposit of the amount you want your credit limit to be — other than that, they function just like normal, unsecured cards. When you close or upgrade the card, you get your deposit back, minus any fees or balance due.
One secured card that’s frequently among our top picks is the Discover it® Secured. This card is a great choice because it sets a timeline for when Discover will start reviewing your account to see if you’re eligible to get your deposit back. It also offers the opportunity to earn cash back, which is unusual among secured cards.
AvantCard Credit Card vs. the Discover it® Secured
| AvantCard Credit Card | Discover it® Secured | |
|---|---|---|
| Annual fee | $39 | $0 |
| Minimum deposit | $0 | $200 |
| Rewards | None | 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically. |
| Sign-up bonus | None | For new cardmembers, Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match. |
| Foreign transaction fee | None | None |
| Regular purchase APR | 25.99% variable | 22.99% variable |
The AvantCard Credit Card does not require a deposit, so if you don’t have $200 available upfront, it might be a better choice. However, the Discover it® Secured does not charge an annual fee — and the security deposit is refundable when you pay off and close your account or if you graduate to an unsecured credit card.
If you’re planning to keep your card for a while, which is good for your length of credit history, the Discover it® Secured could cost less in the long run. And note that after eight months, Discover begins monthly reviews of your card to see if you’re eligible to upgrade to an unsecured card and get your deposit refunded.
Plus, the AvantCard Credit Card doesn’t offer rewards, while the Discover it® Secured does. Rewards shouldn’t be your focus when working to establish or repair your credit score, but if you use the card responsibly and always pay it in full, earning cash back is a nice additional benefit.
Read our review of the Discover it® Secured.
How to build credit with the AvantCard Credit Card
Whether you’re new to credit, working to rebuild your credit or already have a good credit score, here are two things you should always do with your credit card:
- Pay on time and in full. Paying your credit card on time every month is the most important thing you can do to improve your credit score or keep a good score. And if you pay in full, rather than just make the minimum payment due, you can avoid interest charges.
- Keep your utilization low. The percentage of your available credit that you use is called your “utilization ratio.” You should always keep it well below 30%. The AvantCard Credit Card offers a credit limit ranging from $300 to $1,000. So, for example, if you get the minimum limit, you shouldn’t spend more than $90 on your credit card each billing cycle. And if you get the maximum limit, you shouldn’t spend more than $300. If you want to request a credit limit increase, you will need to call Avant at 855-752-7012.
Is the AvantCard Credit Card right for you?
If you have fair/limited/bad/poor credit and are looking for a card that can help you improve your credit score, the AvantCard Credit Card can help you do that. However, you should keep in mind there’s an annual fee of $39. If you don’t want to pay an annual fee, an alternative to consider would be a secured card, such as the Discover it® Secured. You’ll have to put down a deposit, but you can get that back if you pay off and close the card, or if you get to transition to an unsecured card.
