AvantCard Review: A Solid Unsecured Option for Bad Credit
The Bottom Line
4.4
For those with poor credit, this card has a lot going for it, including comprehensive credit bureau reporting. But if what you really have is thin or no credit, you might be able to find better options.
Rates, fees and offers
Rates, fees and offers
Annual fee
$0
Rewards rate
1%
Bonus offer
None
Intro APR
N/A
Ongoing APR
Purchase APR: 35.99%
Cash Advance APR: 35.99%
Foreign transaction fee
0%
More details from Avant
More details from Avant
- 1% Unlimited Cash Back on Every Purchase, Everywhere MasterCard is accepted.**
- No Limit On The Monthly Rewards You Can Earn.
- $0 Foreign Transaction Fees.
- Cash Advance Fee: The greater of $10 or 3% of the amount of the cash advance.
- Fast and Easy Application Process.
- Zero fraud liability for unauthorized charges.
- Conveniently Pay Your Card Through Our Online Portal, 24/7.
- Minimum Finance Charge - If you are charged interest, the charge will be no less than $1.00.
- May Help Strengthen Your Credit History With Responsible Use.
- We May Periodically Review Your Account For Credit Line Increases.
- Avant branded credit products are issued by WebBank.
Pros and Cons
Pros
Reports to the three major credit bureaus
No annual fee
Qualify with bad credit
Earns rewards
No security deposit
Cons
High APR
No upgrade path
Limited availability
Detailed Review
If you have limited or bad credit, the AvantCard Credit Card is a worthy option for building your credit.
The card, issued by WebBank in partnership with financial technology company Avant, uses an underwriting model that considers nontraditional factors — such as your bank account balance — outside of your credit scores. A low credit score may not be as big of a roadblock as it could be with another credit card. You'll still need a Social Security number, email, phone number and address to qualify, though.
Furthermore, the AvantCard Credit Card doesn’t require a security deposit or charge an annual fee, and it earns rewards. That's a solid combination of perks for a card that's gettable even with bad credit, although other options may offer better rewards and upgrade paths.
Note, too, that the card is unavailable to those who live in Hawaii, Iowa, Vermont, West Virginia or Wisconsin.
There are multiple versions of the AvantCard Credit Card; which one you get is determined by your credit profile and other factors. This review focuses on the version with no annual fee and 1% cash back rewards.
AvantCard Credit Card: Basics
Card type: Starter/alternative.
Annual fee: $0.
Sign-up bonus: None.
Rewards: 1% cash back.
APR: The ongoing APR is 35.99%.
Penalty APR: None, although you may incur a late fee.
Foreign transaction fee: None.
Credit limit: $500 to $3,000.
Reporting to three major credit bureaus: TransUnion, Equifax and Experian.
Compare to Other Cards
Benefits and Perks
No security deposit
The AvantCard Credit Card is an unsecured credit card, meaning that unlike a lot of other cards for those with limited credit, it doesn't require a security deposit as collateral.
A pre-qualification process
Before applying for this card, you’re required to go through a pre-qualification process, which won’t impact your credit score. It hints at your likelihood of approval, although it’s not a hard "yes." It offers your specific terms. If you like them, you can formally submit an application that will result in a "hard pull" on your credit report.
Comprehensive credit bureau reporting
When attempting to build or restore your credit you need a card that reports to at least one of the three major credit bureaus, which gather the information used to calculate credit scores. The AvantCard Credit Card reports to all three — TransUnion, Equifax and Experian — which will record your payment history. As long as your payments are on time, it can help you build good credit scores.
Rewards
The primary function of the AvantCard Credit Card is to build credit, but earning rewards is a nice ancillary benefit. All purchases earn 1% cash back, which is automatically redeemed as a statement credit at the end of every billing cycle. That feature is welcome if you prefer frictionless redemptions but less ideal if you like to save up rewards over several months.
A periodic review of your account
The issuer periodically reviews your account to potentially increase your credit limit. That can work in your favor as you’re establishing credit, assuming that you don’t use too much of your limit. Your credit utilization ratio — your total debt compared with your total credit limits — is a key factor in your credit scores. It’s best to keep a low credit utilization ratio, generally by using no more than 30% of your available credit.
Travel-friendly features
The AvantCard Credit Card is a Mastercard, so acceptance will be broad worldwide. It also doesn’t charge foreign transaction fees (generally 3% of the amount charged). If you travel often, the card can be a money-saver.
Drawbacks and Considerations
Limited availability
As noted earlier, you can't get the AvantCard Credit Card if you live in Hawaii, Iowa, Vermont, West Virginia or Wisconsin.
No upgrade path
Once you've used the AvantCard Credit Card to improve your credit, there's no other higher-tier product from the company that you can "graduate" to if, say, you want better rewards or perks. That means when you're ready to move on you'll probably want to apply for a new account with a different issuer, which will most likely trigger a hard pull and a temporary ding to the credit scores you just worked so hard to improve.
On the plus side, keeping your account open won't cost you anything, since the card's annual fee is $0.
More rewarding options exist
For those with no credit (as opposed to poor credit), other starter cards have more to offer. A card like the Chase Freedom Rise®, for example, has better rewards compared to the AvantCard Credit Card, not to mention a welcome offer and a clear upgrade path. Chase will automatically review your account on your annual anniversary to see whether you qualify to move up to the Chase Freedom Unlimited®, with no credit check required.
For bad credit, NerdWallet's top pick is the Discover it® Secured Credit Card by virtue of its solid rewards, unique welcome offer and, again, a clear upgrade path. Unlike the AvantCard Credit Card, you'll have to put down a security deposit upfront, which becomes your credit limit. But after seven months, Discover will start automatically reviewing your account to determine whether you're eligible to move to an unsecured card and get your deposit back.
It has a permanent 'payment due' date
Unlike some other cards, the AvantCard Credit Card doesn't let you switch your "payment due" date to a more convenient time. The Capital One Platinum Secured Credit Card, on the other hand, lets you choose a date that works for you. It does require a (refundable) security deposit, but for those who qualify, the card might accept a deposit as low as $49 to get a $200 credit limit. And you can pay the deposit in installments if needed.
How To Decide If It's Right For You
If your top priority is accessibility, the AvantCard Credit Card should be on your shortlist. It doesn't require a security deposit, and it's open to those with bad credit. Before applying, though, check that this card is available where you live.
Flexible security deposit
Getting a card from a major bank can feel like a safer bet than one from a fintech startup. The Capital One Platinum Secured Credit Card can certainly help you build or rebuild credit, but an upfront security deposit is required to open the account. However, for certain applicants, that deposit may be as low as $49 for a $200 credit limit. And when you're ready to move on from the card, Capital One has a plethora of credit cards to upgrade to.
Looking For Something Else?
Methodology
NerdWallet reviews credit cards with an eye toward both the quantitative and qualitative features of a card. Quantitative features are those that boil down to dollars and cents, such as fees, interest rates, rewards (including earning rates and redemption values) and the cash value of benefits and perks. Qualitative factors are those that affect how easy or difficult it is for a typical cardholder to get good value from the card. They include such things as the ease of application, simplicity of the rewards structure, the likelihood of using certain features, and whether a card is well-suited to everyday use or is best reserved for specific purchases. Our star ratings serve as a general gauge of how each card compares with others in its class, but star ratings are intended to be just one consideration when a consumer is choosing a credit card. Learn how NerdWallet rates credit cards.
Frequently asked questions
Is the AvantCard a good credit card?
Is the AvantCard a good credit card?
The AvantCard Credit Card is a decent credit card among options for limited credit, but other cards offer more value in the form of rewards and no annual fees. If your credit card options are slim because you have limited credit, the AvantCard Credit Card may offer an alternative route to continue establishing your credit history — unless you live in Colorado, Iowa, Vermont, West Virginia or Wisconsin. The card isn’t available in those states.
Does the AvantCard do a hard credit check?
Does the AvantCard do a hard credit check?
The AvantCard Credit Card does run a "hard" inquiry on your credit when you formally apply. But before you submit an official application, you go through a pre-qualification process that doesn’t affect your credit score. This process gives you an idea of your likelihood of approval and allows you to see the terms and conditions of your offer prior to applying. If you decide to go ahead with an application, that's when the hard inquiry occurs.
Does the AvantCard offer credit limit increases?
Does the AvantCard offer credit limit increases?
Avant may periodically review your AvantCard Credit Card account for potential opportunities to increase your credit line. You can also request a credit line increase through your self-service dashboard or the mobile app or by calling customer service. Keep in mind that requesting a credit limit increase could initiate a hard inquiry on your credit report, which could result in a temporary dip in your credit score.
What credit bureau does AvantCard use?
What credit bureau does AvantCard use?
The AvantCard Credit Card reports payments to TransUnion, Equifax and Experian. These companies record your payment history. By paying on time, you can have a positive impact on your credit score.
Is the AvantCard a legitimate credit card?
Is the AvantCard a legitimate credit card?
The AvantCard Credit Card is a legitimate credit card. The card is issued by WebBank, a state-chartered industrial bank based in Utah. The startup company behind the card, Avant, facilitates a path to credit for eligible applicants with the AvantCard and personal loans.
About the author
Melissa Lambarena
Senior Writer & Content Strategist
