By : 
Mr Credit Card
Mr Credit CardAvant Card: A Very Competitive Unsecured Rebuilder Card
The Avant Card is a rebuilder unsecured credit card from Avant, the personal loan company and issued by Web Bank. It is targeted at people with bad credit (you need at least 620 FICO score) and has low fees compared to many of it's peers. Most people get approved with a $300, $750 or $1,000 starting credit limit and Avant does give periodic credit limit increases to some carholders. Because of it's low annual fee, ability to accept debit card payments, no payment holds and a pre-approval process, it is one of the more attractive unseucred subprime credit cards. However, it is not perfect. At present, they do not have contactless pay and you cannot load them in digital wallets (ie Apple Pay and Google Pay).In this review, I will go over the details of the Avant Mastercard and compare it with it's peers. We'll see how it stacks up.
Card Details: Online and non-online version
| Card | Annual Fee | Monthly Fee | Credit Limit | APR |
|---|---|---|---|---|
| Avant (online version) | $39 | $0 | $300 - $3,000 | 35.99% |
| Avant (Annual Fee version) |
Y1 = $0 - $99, Then $19 - $99 |
$0 | $300 - $3,000 | 35.99% |
| Avant (Monthly Fee Version) | $0 |
Y1 = $0 - $0.99/month Then $0.99 - $1.99/month |
$500 - $3,000 | 35.99% |
| Avant (Annual + Monthly Fee) | $0 - $75 | $0 - $0.99/month | $300 - $3,000 | 29.74% - 35.99% |
As you can see from the table above, the version that you will be offered when you apply online directly from Avant's website has a $39 annual fee. If you are an existing Avant client and/or or you received an offer, then the terms (in terms of fees) will be slightly different and you may get the following offers.
Annual Fee only version - The annual fee version has an annual fee ranging from $0 - $75 during the first year. From the second year onwards, the annual fee will range between $19 and $99.
Monthly Fee only version - The monthly fee only version charges a monthly fee ranging from $0 to $0.99 a month (ie $0 - #11.88 annually) during the first year. From the second year onwards, the monthly fee increases to $0.99 to $1.99 a month (ie $11.88 to $23.88 annually).
All other offers - Or you may get an offer with the following terms - an annual fee ranging from $0 - $75 and a monthly fee ranging from $0 - $0.99 (ie $0 - $11.88 annually). The maximum fees on this offer would be $75 + $11.88 = $86.88.
Credit Limits - The credit limits of all Avant cards range from $300 to $3,000. $3,000 is quite a good max limit for a subprime unsecured credit card.
Analysis with Total Fee to Credit Limit Ratio
| Card | Annual Fee | Monthly Fee | Credit Limit Assumtion | TFCL Ratio |
|---|---|---|---|---|
| Avant (online version) | $39 | $0 | $500 | $39/$500 = 7.8% |
| Avant (Annual Fee version) |
Y1 = $0 - $99, Then $19 - $99 |
$0 | $500 | $99/$500 = 19.8% |
| Avant (Monthly Fee Version) | $0 |
Y1 = $0 - $0.99/month Then $0.99 - $1.99/month |
$500 | $23.88/$500 = 4.78% |
| Avant (Annual + Monthly Fee) | $0 - $75 | $0 - $0.99/month | $500 | $(75 + 11.88)/$500 = 17.38% |
As you can see from the table above, the best version to get (based on fees) is the online version with $39 annual fee or the monthly fee only version where the maximum fee you will pay is only $23.88 ($1.99 X 12).
Competition
In this section, I am going to compare the Avant card with two groups of their competition. The first group are cards with similar fees and the second group are with cards that have much higher fees than Avant. I will list their TFCL ratios using $500 as the assumed credit limit.Compared to those with similar fees
| Card | Annual Fee | Credit Limit | Maximum Credit Limit | Fees/Credit Limit Ratio | |
|---|---|---|---|---|---|
| Brightway | $0 - $89 | $300 - $2,000 | $15,000 | $89/$500 = 17.8% | |
| Upgrade Select Visa | $39 | $500 - $2,500 | $2,500 | $39/$500 = 7.8% | |
| Arro Card | $36 | $200 - $2,500 | $2,500> | $36/$500 = 7.2% |
As you can see from the table above, there are some cards with similar fees to that of the Avant Mastercard (at least similar to the $39 annual fee version). They include cards like the Upgrade Select Visa Card, Arro Mastercard and the Brightway Mastercard. Though they are quite similar, they are different in some significant ways.
For the example, the Arro Mastercard does not rely on FICO scores to approve you and do not perform any hard inquiries. Instead, you need a minimum income of $1,800 to get approved. The Upgrade Select Visa actually works like an installment loan in terms of how you pay back your balance. The Brightway Mastercard has a higher annual fee of $75 (compared to $39 for Avant). But if you pay on time for 2 years, you will be upgraded to the no annual fee version. And if you pay on time every 6 months, you will be eligible for a credit limit increase.
All of the cards also have reasonable fees and their TFCL ratios are comparable to Avant.
You can check out our comparisons of the following cards with Avant.
Avant Card is better than the following cards which has much higher fees
| Card | Annual Fee | Monthly Fee | Program Fee | Credit Limit | Fees/Credit Limit Ratio |
|---|---|---|---|---|---|
| Surge $500 | $125 | $10/month | $0 |
$5,000 $1000 after paying on-time for 6 months |
Y1 = $125/$500 = 25% Y2 = ($125 + $120 = $245)/$1000 = 24.5% |
| Surge $300 | $125 | $10/month | $0 |
$750 $1,500 after paying on-time for 6 months |
Y1 = $75/$300 = 25% Y2 = ($99 + $120)/$600 = 36.5% |
| Total Visa | Y1 = $75, then $48 | Y1=$0, then $8.25.25/month = $99/Year | $95 | $300 |
Y1 = $(75 + 89)/$300 = 54.67% Y2 = ($48 + $99)/$300 = 49.33% |
| First Access Visa | Y1 = $75, then $48 | Y1=$0, then $8.25/month | $95 | $300 |
Y1 = $(75 + 89)/$300 = 54.67% Y2 = ($48 + $99)/$300 = 49.33% |
| First Digital | Y1 = $75, then $48 | Y1=$0, then $8.25/month | $89 | $300 |
Y1 = $(75 + 89)/$300 = 54.67% Y2 = ($48 + $99)/$300 = 49.33% |
| Fit Mastercard | Y1 = $99, then $125 | Y1=$0, then $12.50/month ($150 annually) | $95 |
$400 $800 after paying on-time for 6 month |
Y1 = $(99 + 95)/$400 = 48.5% Y2 = ($125 + $150)/$800 = 34.4% |
The table above gives you a list of credit cards that charge both an annual fee and monthly fee. When you add those fees together, they total to more than a hundred dollars. The Avant Card (especially the $39 annual version) is obviously better than all of these cards from a fee perspective. Even the highest fee version of Avant has total fees of less than one hundred dollars. This is reflected in the Total Fee to Credit Limit ratios (TFCL) and the Avant Card has much lower TFCL ratio than these high fees credit card.
Strong Points of Avant Card
Relatively Low Fees
Compared to it's peers, the Avant Card has relatively low fees. There are various variations of their card and as mentioned earlier, some come with just an annual fee, some with just a monthly fee and some with both. Regardless, the fees are relatively low and modest compared to many of their peers, over have combined annual and monthly fees over way over a hundred dollars a year.Potential for a high credit limit
Many cardholders start off with credit limits ranging from $300, $750 and even up to $1,500. However, you can get credit limits over time. Avant does give credit limit increase without you requesting or you could simply request a credit limit increase and you can get an answer in about 2 days. The maximum credit limit you can get with the Avant card is $3,000. This is a very good credit limit for an unsecured subprime credit card.Can pay with Debit Card
Avant is one of the rare credit cards that allow you to pay with a debit card easily. Paying with a debit card has the advantage of having your payments clear immediately which will then be reflected in your credit limits almost immediately as well.Very little payment holds
Avant also has a reputation of clearing payments via ACH very quickly (within a day or two). This is in contrast to many of it's peers, that typically take 5-10 days for payments to be reflected in their credit limits.Pre-approval Process
Avant allows you to go through a pre-approval process with no impact on your credit score. If you want to get an Avant Mastercard, you can go through the process and see what credit limit you are offered. Many people go through the process periodically until they are offered a credit limit that they are happy with before pulling the trigger.Shortcomings: What We Don't Like
No Digital Wallets
- At this moment, Avant does not allow you to load the card to ApplePay or GooglePay or SamsungPay.No Contactless Pay
Another shortcoming of the Avant card is that there is no Mastercard contactless pay. So you literally have to insert or swipe your card at a retailer since there is no contactless pay or payment by digital wallets.Brief History of credit limit decreases
In 2022, there were lot of complaints from Avant cardholders that credit limits were slashed for no good reason. This had probably had to do with Fed rate hikes and them trying to reduce their credit card portfolio risk.No Free Credit Scores
This is not a huge shorting coming but Avant does not provide any free credit scores either from FICO or Vantage and many of their peers are doing so. It is probably not a deal breaker though.Our Take: Low Fees make this an attractive card
Avant is also one of the rare credit cards that allow you to use your debit card to pay your credit card bills and there is hardly any payment hold on ACH payments and autopay.
However, Avant does not have contactless pay and you cannot load it onto your digital wallet. So both Apple Pay an Google Pay are out.
Despite all the positive things I have to say about Avant, they do face competition from other low fee subprime credit cards. There were also huge complaints in 2022 when they cut many cardholders credit limits and many vented their frustration at forums around that time period.
To sum up, based on our review and evaluation of the Avant Card, we give it a 4 star rating out of 5 for it's low fees, ability to pay with a debit card and the lack of payment hold. The lack of contactless pay and digital wallet availability prevents us from giving it a higher rating. If you have bad credit and scores around the 620 area and are looking for an unsecured credit card, then the Avant Card is definitely one to consider.
Avant also has a pre-approval process where you can periodically check if you are pre-approved and what credit limit you can get. If you go through the process periodically and pull the trigger once you are happy with the credit limit you are offered.
Some Customer Reviews
I got pre-approved for the Avant card and the fees appeared to be lower than most other subprime cards and I guess it is the best of the lot. Pulled the trigger and so far I am ok with it. My SCL was $300 with a $39 annual fee.
I applied and got approved for Avant with no annual fee and a starting credit limit of $3,000. So far, I am happy with the card.
Avant has no contactless feature. You also cannot load it on your digital wallet like ApplePay or GooglePay. But otherwise, this is an ok card.
I had my Avant card for over a year. Then I found out that my account was closed becaused it was inactive for 3 months. I really don't know why they close it merely after 3 months of inactivity. I had other cards from Barclays that closed on me only after 1 year of inactivity.
The reason why I like my Avant card is because they allow you to pay with a debit card. Not many issuers allow you to. Paying by debit clears without any payment hold and is reflected in my credit limit immediately. Furthermore, my debit card has a 1% cash back every time I use it.
I got the Avant card with only a $300 credit limit. It has been a year and a half and I have not had any credit limit increases.
I have had the Avant card for more than a year now. What I like about the card is that their autopay via ACH payments from my bank account are credited and reflected immediately in my credit limits. My other subprime cards usually take 5-10 days.
I got the Avant credit card one year after my BK discharge and received an SLC of $1,000. I received an email recently telling me that my limit has been increased to $1,250.
I got approved for the Avant card with a $1000 SCL and a $39 annual fee. As a guide, my FICO score is about 640 with at least 10 derogs (charge off and collections).
I have the Avant card and started out with a $750 credit limit. After 1 year, I requested a CLI and after 2 days was approved for an increase to $1000 (ie $250 increase). My annual fee is $39.
Don't get the Avant card. I had one with $750 credit limit and hardly used it. Then they dropped my limit to $300.
I started off with a $1500 credit limit. I always paid in full an on time and never had a late payment. I also only used 30% of my limit (ie $500) as I was told to. Still they cut my limit to $500 a month ago. Just cannot understand why!!!
Support and Contact Information
Phone: 855-752-7012