Credit Cards Review Before 2021

The Avant credit card, issued by WebBank, is an unsecured mortgage credit card. You can get prequalified without a thorough investigation of your credit report and your balances and payments are reported to all three credit bureaus each month. But the card has few other perks, and its high fees and annual fee make it a poor choice for new credit users.

In one look

• Unsecured card for building credit
• Credit limit of $ 300 to $ 1,000
• Prequalification offer
• $ 59 annual fee
• 24.99% variable APR

Additional card details

The Avant credit card is a credit card for people looking to build or improve their credit history, so it doesn’t have many benefits. Instead, you should use this card as a tool to improve your credit score by paying your bill in full and on time each month and spending below your credit limit. As Avant reports monthly to each of the three credit bureaus, this is the best way to increase your score over time.

You can be prequalified, which allows you to assess your chances of approval without undergoing a serious credit check, which could temporarily have a negative impact on your credit. The card is also a Mastercard and offers a few Mastercard perks, including Mastercard identity theft protection and Mastercard Airport Concierge discounts.

Should you get this card?

It can be difficult to qualify for a credit card with poor credit or little credit history, so the Avant credit card – intended for cardholders looking to rebuild or establish credit – may be an option. accessible, especially if you are looking for unsecured credit. menu.

Its biggest drawback is the annual membership fee. While many cards in this category charge relatively high APRs, there are plenty of options without the Avant card’s $ 59 price tag.

Some unsecured mortgage cards are not only free, but also offer additional rewards and benefits, such as the Visa® Petal 2 “Cash Back, No Fees” credit card. You’ll earn 1% base cash back on every purchase, which you can increase up to 1.5% after 12 one-time monthly payments. There is no annual fee with this card and the credit limit starts at $ 500 (compared to the $ 300 minimum before).

If you are willing to pay an initial security deposit, there are also some good secured credit card options that can help you build your credit while enjoying other benefits. Discover it® secure credit card earns 2% cash back at gas stations and restaurants (up to $ 1,000 spent quarterly) and 1% on everything else, with no annual fee . Many secure cards also return your original deposit when you are ready to switch to an unsecured card or close your account in good standing.

How to use the Avant credit card

If you choose to apply for an Avant credit card, start by using the Avant prequalification option. This can help you assess your eligibility before completing a full credit card application that requires a thorough credit check.

Once you are approved for the card, adopt responsible credit habits that will help you grow your credit and switch to a card with better terms and benefits. Read your card contract carefully and make sure you know your credit limit. Then use your card to make purchases throughout the month that you can afford to pay when your statement is due, and keep your balance well below your credit limit.

Since the most important factor that makes up your credit score is your payment history, start building your credit as efficiently as possible by making sure you pay off your balances in full and on time each month.

The second most important factor in your FICO score is how much you owe against your credit limits, or credit utilization ratio. Experts recommend keeping your usage below 10% (or maximum 30%) for the best results. This means keeping balances below $ 100 (or $ 300 maximum) if your credit limit is $ 1,000.

Over time, avoid carrying high interest debt balances. Not only is this card’s 24.99% variable APR high, revolving debt can have negative credit effects that keep you from getting a good score and qualifying for better cards in the future.

Credit card Before compared to other cards

Final result

The Avant credit card is a decent option for creating credit, but there are other credit cards that offer better benefits and don’t charge an annual fee. Before you apply, compare our favorite credit cards for bad credit and for people with no credit history, to make sure you choose the card that is best suited to your goals and spending.

If you decide to apply for the Avant credit card, develop good credit habits early on to maximize your results. Pay your bill on time, keep your usage low, and continue to accumulate credit until your score is high enough to upgrade to a card with better rates and terms.

Frequently Asked Questions