Avant Credit Card Review: An Unsecured Card for Building Credit
Review
Updated
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Most experts recommend secured credit cards for building credit. But not everyone can afford the cash deposit to open a secured card. The Avant Credit Card is intended for people who want to build credit without putting down a deposit. Although it's a barebones card with few perks, it is a competitive credit-builder. Read our full Avant Credit Card review for all the details.
Fair (300-669)
Intro APR
Purchases: N/A
Balance Transfers: N/A
Regular APR
24.99% - 29.99%, variable
Rewards
N/A
Annual Fee
Up to $59
Welcome Offer
N/A
People wanting to build credit with a credit card may want to consider this unsecured card that doesn't require a deposit to open an account.
We recommend comparing options to ensure the card you're selecting is the best fit for you. To make your search easier, here's a short list of standout credit cards.
| Offer | Our Rating | Welcome Offer | Rewards Program | APR | Learn More |
|---|---|---|---|---|---|
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Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Discover will match all the cash back you’ve earned at the end of your first year. | 1% - 5% Cashback Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases. |
Intro: Purchases: 0%, 15 months Balance Transfers: 0%, 15 months Regular: 18.24% - 27.24% Variable APR |
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|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
$200 cash rewards Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months. | 2% cash rewards Earn unlimited 2% cash rewards on purchases. |
Intro: 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers Purchases: 0% intro APR, 12 months from account opening Balance Transfers: 0% intro APR, 12 months from account opening on qualifying balance transfers Regular: 19.24%, 24.24%, or 29.24% Variable APR |
|
Apply Now for Bank of America® Travel Rewards credit card
On Bank of America's Secure Website. |
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
25,000 points 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases | 1.5-3 points per dollar Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees, and your points don't expire as long as your account remains open. Earn 3 points per $1 spent on travel purchases booked through the Bank of America Travel Center. |
Intro: 0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days. After the intro APR offer ends, 18.24% - 28.24% Variable APR on purchases and balance transfers will apply. A 3% fee for 60 days from account opening, then 4% fee applies to all balance transfers. Balance transfers may not be used to pay any account provided by Bank of America. Purchases: 0% Intro APR for 15 billing cycles for purchases Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days Regular: 18.24% - 28.24% (Variable) |
Apply Now for Bank of America® Travel Rewards credit card
On Bank of America's Secure Website. |
This credit card is a good fit for: Credit builders who want to avoid the deposit for a secured credit card.
This card has a few perks that make it stand out from other credit-building cards.
One of the Avant Credit Card's more appealing traits is that it is an unsecured credit card. This means you don't need to make a cash deposit to open an Avant Credit Card account if you're approved.
In contrast, many credit cards for bad credit or for people with no credit are secured credit cards. Secured cards require a deposit to open and maintain the account. This deposit is refundable if you close your account with a $0 balance and no outstanding fees.
Although the deposit is refundable, most secured cards require a minimum deposit amount that is higher than the Avant Credit Card's annual fee. So the Avant Credit Card will likely require less money out of pocket to open.
It may seem counterintuitive, but applying for a new credit card can hurt your credit. That's because the credit card issuer will run a hard credit check. This is a complete look at your credit report and scores. Each hard credit inquiry is marked on your credit report and it can drop your credit score. The more hard inquiries you have, the more credit damage it can do.
The Avant Credit Card lets you check for prequalification before you fill out a full application. Prequalification uses a soft credit check instead of a hard check. Soft credit inquiries don't pull your full credit report, and they won't hurt your credit score. If you prequalify for an Avant Credit Card, there's a good chance you'll be approved if you apply. However, it isn't guaranteed.
One of the more unusual features of the Avant Credit Card is that it doesn't charge any foreign transaction fees. This is uncommon for credit-building cards, especially unsecured ones.
Basically, foreign transaction fees are charged by credit card issuers every time you use your credit card to make a purchase in a foreign currency. So, anything you buy that isn't in U.S. dollars. Transactions that go through a foreign bank could also be charged a foreign transaction fee.
Given that foreign transaction fees can range between 3% and 5%, they can get expensive fast. The Avant Credit Card's 0% fee could save you a lot of money if you travel abroad or shop online with a foreign retailer.
Read more: Best No Foreign Transaction Fee Credit Cards
This card has very limited features that leave it feeling sparse.
A major drawback of the Avant Credit Card is that you can't earn any purchase rewards like cash back or rewards points. This is a big oversight, as many other credit cards earn rewards. You can even find great secured cards that let you earn rewards while you build credit.
On top of no rewards, there isn't a sign-up bonus, either. Many rewards cards will offer a lump sum of cash back or points for spending a certain amount on your card -- but not the Avant Credit Card.
Additionally, you won't receive any kind of intro APR deal. This means you can only avoid interest fees on your Avant Credit Card by paying your full balance before your due date each billing cycle.
The annual fee system for the Avant Credit Card can be very confusing, because you won't know your annual fee until you get an offer. If you're well-qualified, you may have a $0 annual fee.
However, some people may be approved for an Avant Credit Card but have to pay an annual fee of up to $59. Approved applicants who are required to pay an annual fee will be charged that fee as soon as they open their account.
As with the annual fee, the credit limit you receive if approved for an Avant Credit Card can vary quite a bit. The minimum credit limit you will receive is $300. The maximum credit limit you could be approved for would be $1,000.
Either way, it's a low limit. You'll want to be careful how much you charge with your card. Using too much of your available credit can hurt your credit score. The percentage of your credit limit that you use is called your utilization rate. If that rate goes above 30%, your credit score could see a significant decrease.
There is no minimum credit score or credit history requirement to qualify for an Avant Credit Card. This means you could be approved no matter what kind of credit you have (or don't have, as the case may be).
Although the card is open to a range of credit types, it does still require a credit check when you apply. And applicants may need to meet certain income qualifications. There is no guarantee you'll be approved for an Avant Credit Card.
The Avant Credit Card is a solid pick if you want to build credit but you don't -- or can't -- put down a deposit on a secured credit card. Although you won't earn rewards, paying your bill on time and keeping your balance low can help you build credit. Some applicants may even be offered an Avant Credit Card with no annual fee, though others may have to pay an an annual fee.
At Motley Fool Money, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.
We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how Motley Fool Money rates credit cards.
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