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Avant Credit Card Review | The Ascent

Avant Credit Card Review | The Ascent
Written by Publishing Team

The most important advantages

This card has some perks that make it stand out from other building credit cards.

Unsecured card with no deposit required

One of the most attractive features of the Avant Credit Card is that it is an unsecured credit card. This means that you do not need to make a cash deposit to open an Avant credit card account if you are approved.

In contrast, many credit cards for bad credit or for people without 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 fees due.

Although the deposit is refundable, most secured cards require a minimum deposit amount that is higher than the annual fee for the Avant credit card. So the Avant Credit Card will likely require less money out of pocket to open.

Check online to see if you qualify in advance

It may seem counterintuitive, but applying for a new credit card can harm your credit. That’s because the credit card issuer will do a tough credit check. This is a complete look at your credit report and results. Every consistent credit inquiry is flagged on your credit report and can lower your credit score. The more difficult inquiries you make, the more credit damage it can do.

The Avant Credit Card allows you to check for pre-qualification before filling out a complete 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 pre-qualify for an Avant credit card, there is a good chance you will be approved if you apply. However, it is not guaranteed.

No foreign transaction fees

One of the most unusual features of an Avant credit card is that it does not charge any foreign transaction fees. This is uncommon for building credit cards, especially unsecured cards.

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 is not in US dollars. Foreign transaction fees can also be charged from transactions made through a foreign bank.

Given that foreign transaction fees can range from 3% to 5%, it can quickly become expensive. Avant credit card’s 0% fee can save you a lot of money if you travel abroad or shop online with a foreign retailer.

What can be improved

This card has very limited features that make it look scattered.

There are no bonuses on purchases or welcome offer

The main disadvantage of Avant credit card is that you cannot earn any purchase rewards such as cashback or reward points. This is a great oversight, as many other credit cards earn rewards. You can also find great guaranteed cards that allow you to earn rewards while building credit.

On top of no bonuses, there is no sign up bonus either. Many reward cards will offer a lump sum of cashback or points for spending a certain amount on your card – but not the Avant credit card.

In addition, you will not receive any kind of introductory APR offer. This means that you can only avoid interest charges on your Avant credit card by paying your balance in full before your due date in each billing cycle.

Annual fee

Avant credit card annual fee system can be very confusing, because you won’t know your annual fee until you get an offer. If you qualify well, you may have $0 in annual fees.

However, some people may be approved for an Avant credit card but have to pay an annual fee of up to $59. This fee will be charged to approved applicants who are required to pay an annual fee once their account is opened.

Credit limits range from $300 to $1,000

As with the annual fee, the credit limit you receive if an Avant credit card is approved can vary slightly. The minimum credit you will receive is $300. The maximum credit that can be approved will be $1,000.

Either way, it’s a low end. You’ll want to be careful when charging your card. Using too much of your available credit may harm your credit score. The percentage of the credit limit you use is called your utilization rate. If this rate exceeds 30%, your credit score could see a significant drop.

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