AvantCard Credit Card Review
Table of Contents
- Introduction to AvantCard
- Key Features and Benefits
- Pros and Cons
- Comparative Analysis with Other Cards
- Final Thoughts
- FAQs
Introduction to AvantCard
The AvantCard Credit Card, issued by WebBank and headquartered in Chicago, entered the credit card market in November 2017 as a part of Avant’s commitment to providing financial products that cater to consumers with average to good credit scores (630-719). This card is particularly aimed at those new to credit or those seeking to improve their credit scores without the burden of a security deposit. However, it comes with a $39 annual fee and a high APR of 35.99% variable, factors that might detract from its appeal.
Key Features and Benefits
Table 1: AvantCard Key Specifications
| Feature | Detail |
|---|---|
| Annual Fee | $39 |
| APR | 35.99% Variable |
| Credit Score Required | 630-719 (Fair to Good) |
| Rewards | None |
| Foreign Transaction Fee | None |
| Credit Limit | $300 to $2,000 |
The AvantCard stands out by not requiring a security deposit, making it an unsecured credit card. This feature is significant for individuals who may not have the cash available for a deposit upfront. It also reports to the three major credit bureaus — TransUnion, Equifax, and Experian — ensuring that timely payments will positively impact the cardholder’s credit score.
Pros and Cons
Pros
- No Security Deposit Required: Accessible for those who cannot afford an upfront payment.
- Reports to Major Credit Bureaus: Helps in building or improving a credit score.
- No Foreign Transaction Fees: Suitable for international travelers.
Cons
- Annual Fee: At $39, it’s not the most expensive, but there are cheaper alternatives.
- High APR: The ongoing APR is significantly higher than many competitors, potentially making it expensive to carry a balance.
- No Rewards: Unlike some other cards aimed at similar demographics, the AvantCard offers no cash back or points rewards.
Comparative Analysis with Other Cards
When comparing the AvantCard to other similar products on the market, it is clear that while it has its strengths, there are other cards that might offer better value depending on the user’s specific needs.
AvantCard vs. Discover it® Secured Credit Card
- Discover it® Secured Credit Card: No annual fee and a lower APR of 28.24%. It also offers a cashback reward program, which is absent in AvantCard. However, it requires a security deposit, which AvantCard does not.
AvantCard vs. Petal® 2 “Cash Back, No Fees” Visa® Credit Card
- Petal® 2 Visa® Credit Card: No annual fee and offers a cashback reward program that increases with on-time payments. Aimed at individuals with no credit history, it evaluates creditworthiness using a unique model that includes income and expenses.
AvantCard vs. Capital One QuicksilverOne
- Capital One QuicksilverOne: Similar to AvantCard in targeting consumers with fair to good credit, it offers 1.5% cash back on all purchases for a slightly higher annual fee of $39 but with a lower APR.
Final Thoughts
The AvantCard Credit Card is a viable option for those new to credit or looking to build their credit without a security deposit. However, its high APR and lack of rewards program might not make it the best choice for everyone, especially when compared to other cards that offer more benefits with lower fees.
FAQs
Q1: Who should consider the AvantCard Credit Card?
A1: It’s best suited for individuals with fair to good credit who want to build their credit history without a security deposit.
Q2: What are the major drawbacks of the AvantCard?
A2: The high APR and the annual fee, coupled with no rewards program, are the primary drawbacks.
Q3: Are there any benefits to using the AvantCard abroad?
A3: Yes, the card does not charge foreign transaction fees, making it a decent option for international use.
Q4: How does AvantCard affect my credit score?
A4: Regular reporting to the major credit bureaus means that responsible use of the card, such as timely payments, can help improve your credit score.
Q5: Is there a better alternative to AvantCard?
A5: Depending on your specific needs, cards like the Discover it® Secured or the Petal® 2 Visa® might offer more benefits with fewer costs.
In this evolving credit card market, AvantCard offers an approachable option for those looking to establish or repair their credit. However, potential cardholders should weigh its features against their individual financial situations to determine if it’s the right fit for their wallets.
