AvantCard Credit Card Review: An Affordable Unsecured Option for Credit Building

The AvantCard Credit Card, issued by WebBank, is an affordable unsecured credit card that can help you establish and build credit or rebuild your credit. It’s intended for those who want a credit-building card without having to tie up money in a security deposit.

However, because of the $59 annual fee, you will save money with a secured credit card since the security deposit is refundable. An annual fee is something you will pay for as long as you have the card, whereas a security deposit is refundable when you close your account or upgrade to an unsecured card.

Know that some of the best secured credit cards have no annual fee and offer rewards programs.

• Annual fee: $59
• Sign-up bonus: None
• Rewards: Non-rewards card
• APR on purchases: 35.99%
• Other benefits: Monthly credit reporting, Credit line increases, Mobile app
• Credit needed: Limited / Poor / Fair

• Affordable unsecured credit-building option

  This credit card doesn’t require a security deposit and is aimed at applicants with limited / poor / fair credit.

  While many unsecured cards or people with less-than-stellar credit hit you with various hidden fees, the AvantCard Credit Card is pretty straightforward. It’s a no-frills card with a low annual fee of $59 and a credit limit ranging from $300 to $3,000.

  → Learn about 9 common credit card fees and how to avoid them

• Ability to check if you prequalify

  You can check to see if you’re prequalified for the AvantCard Credit Card without impacting your credit score on Avant’s website. Note that applying for the card after you qualify will affect your credit score, since it will generate a hard pull on your credit report.

• Reports to all three credit bureaus

  This card reports your 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.

  → Learn how to get your free annual credit report

• Credit line increases

  With responsible use of your AvantCard Credit Card over time, you may be eligible for credit line increases. Credit line increases can positively affect your credit score by lowering your credit utilization ratio.

  Credit utilization is the second highest factor that makes up your credit score, and even a small change in your credit limit can have a major impact on your score. The best credit utilization ratio is below 30%. If you had a credit limit of $1,000 and a balance of $300, your credit utilization ratio would be 30%. If your credit limit increased to $1,500 and you had a $300 balance — the ratio would be just 20%.

• No penalty APR

  The AvantCard Credit Card has no penalty APR. A penalty APR is a higher rate you’re charged on a balance if it’s paid late (usually after 60 days).

  Since this card doesn’t have one, you don’t have to worry about your APR going up if you can’t pay on time. However, the AvantCard Credit Card already has a high regular purchase APR of 35.99%. Additionally, because paying late will negatively impact your credit score, it’s essential to always pay your balance on time and in full when possible.

• Annual fee

  The AvantCard Credit Card has an annual fee of $59. This is relatively low and may be worth paying if you want an unsecured card to use for a year or two while you rebuild your credit. However, unlike a security deposit (which you can get back), annual fees are not refundable.

  A secured credit card with no annual fee is likely to be the more affordable option in the long term. Your security deposit, usually $200, is refundable when you close your account in good standing or graduate to an unsecured card. And you won’t have to pay an ongoing annual fee.

  In the table below, you can see how the math works out by comparing a card with an annual fee, like the AvantCard Credit Card, to a secured credit card with no annual fee.
  

  	Annual fee	Security deposit
  Year 1	$59	$200
  Year 2	$59	$0
  Year 3	$59	$0
  Year 4	$59	$0
  Total after 4 years	$236	$200
  Amount refunded when you close your account during the fourth year	$0	$200

  Some cardholders on Reddit and other online forums claim that Avant has increased their fees or tacked on a monthly fee after their accounts have been open for a while and that Avant may not reliably report cardholder payments. Also, some users report their card being declined frequently for suspected fraud.

  As with any credit card, make sure you understand the terms and conditions of card ownership before you agree to sign anything. Read all cardholder updates and changes to terms and conditions, and feel free to cancel your credit card if it’s no longer beneficial to you and your financial situation.

• High APR

  This card’s APR is a very high 35.99%. While that’s comparable with other cards for consumers with limited / poor / fair credit, you’ll want to avoid carrying a balance to avoid hefty interest charges on this card.

  → Discover the average credit card interest rate in America today

• Low credit limit

  The credit limit for the AvantCard Credit Card only ranges from $300 to $3,000. If you graduate to a credit card for good or excellent credit with another issuer, you can expect a much higher credit limit than $3,000.

  → Learn how to increase your credit limit

• No rewards program

  This card doesn’t offer a rewards program. If you’d prefer a card that lets you earn rewards for the purchases you make while building your credit, then cards like the Capital One Quicksilver Secured Cash Rewards Credit Card and Discover it^® Secured Credit Card may be a better fit.

  → Find the best rewards credit cards

AvantCard Credit Card vs. Discover it^® Secured Credit Card

The Discover it^® Secured Credit Card has a $0 annual fee and requires a minimum deposit of $200. You can add more money to your deposit if you’d like a higher credit limit. Unlike the AvantCard Credit Card‘s annual fee, your deposit will be returned if you close your account in good standing or upgrade to an unsecured Discover credit card.

Unlike the AvantCard Credit Card, it lets you earn rewards. Cardholders can earn 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. Also, Discover will match all the cash back you’ve earned at the end of your first year.

AvantCard Credit Card vs. OpenSky^® Secured Visa^® Credit Card

Starting on the path to building a good credit score can be tricky but the OpenSky^® Secured Visa^® Credit Card makes it easier since it doesn’t require a credit score or a credit check. You do need to pay a $35 annual fee and submit a $200 to establish your line of credit.

It sends monthly reports to all three credit bureaus, offers credit limit increases (though you’ll need to increase your security deposit) and the potential to upgrade to an unsecured card. It’s 24.64% (variable) APR isn’t as high as the AvantCard Credit Card‘s but you should aim to avoid carrying a balance.

AvantCard Credit Card vs. Capital One Quicksilver Secured Cash Rewards Credit Card

The Capital One Quicksilver Secured Cash Rewards Credit Card is similar to the Discover it^® Secured Credit Card in that there’s a $0 annual fee and a minimum deposit of $200 (see rates & fees). Where it differs is that you earn 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply).

Capital One does regular account reviews and you will be automatically considered for a higher credit line in as little as six months with no additional deposit. They also report your account activity to the three major credit bureaus and with responsible use, you may be able to upgrade to an unsecured Capital One credit card.

If you have limited / poor / fair credit and prefer an unsecured credit card, the AvantCard Credit Card may be a good choice. With no hidden fees and a relatively reasonable $59 annual fee, it is one of the better unsecured options for people with low credit scores.

However, if you can fund a deposit, a secured card, such as the Discover it^® Secured Credit Card, will be the better choice in the long run. You won’t have to pay an ongoing annual fee and you can get your deposit refunded once you pay off and close the card, or you transition to an unsecured card.

We devote a large part of the score for credit-building cards to features that help build credit — we want to help you locate cards that don’t cost a lot to own and get help you upgrade to better card offers.

• Annual savings (50% of rating): We calculate how much the average cardholder can save with the card on a yearly basis. If it is a rewards card, we use U.S. Bureau of Labor data and $300 in monthly spend (the typical starting credit limit for an introductory card) to calculate how much the average cardholder can earn in rewards. We then subtract fees — including annual fees and maintenance fees — from this amount.
• Credit building features (50% of rating): We give points for features that help build credit, including reports to all three credit bureaus, regular account reviews for card upgrades and free credit score access. We detract points for features that can be costly to cardholders trying to build credit, such as security deposits, penalty APRs and late payment fees.

Note, that our ratings are a starting point for comparing and choosing the best credit card for building credit. However, your needs may be different from the average cardholder. You should consider the amount you’re likely to spend in a card’s bonus categories and which benefits you value to choose the best card for you.