Is Avant Card A Scam?

Avant is a legitimate financial technology company, and its credit cards are not fraudulent or fake credit cards. Avant-branded credit cards are issued by WebBank, Member FDIC, an FDIC-insured, state-chartered industrial bank, while Avant provides the technology platform and services the accounts. Avant's current credit card disclosures identify WebBank as the issuing bank, and Avant's cardmember agreement states that the card product is offered by WebBank and serviced by Avant. Avant is a real operating financial technology company with an established online credit-card platform and provides credit cards issued by WebBank to consumers through its online platform.

If you want more information about how Avant Credit Cards work, the different Avant card offers, credit limits, rewards, fees, and who the cards are designed for, see our What Is an Avant Credit Card? article.

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Why Some People Consider Avant a "Scam"

Avant is not a fake credit-card company, but some consumers may consider an Avant Credit Card a poor deal because of the interest rates, annual fees, and differences between the available card offers. The terms can vary considerably depending on which Avant card a consumer is offered.

• High interest rates: The current Avant card offers shown on our site have regular APRs ranging from 29.99% to 35.99%. Carrying a balance at these rates can make purchases significantly more expensive over time.
• Annual fees on some cards: Not every Avant Credit Card has an annual fee, but some current offers charge one. The Avant cards shown here include offers with a $0, $39, or $75 annual fee.
• Different Avant cards have different terms: The name “Avant Credit Card” does not identify one identical product. Current offers can differ in cash back, credit-limit range, APR, and annual fee. For example, one current offer provides 2% unlimited cash back with a $0 annual fee, while other offers provide 1% cash back and have annual fees of $39 or $75.
• Credit limits can be modest: Current Avant offers shown here have credit-limit ranges from $300 to $3,000, depending on the specific card and the applicant's qualifications.

Why Avant is still considered legitimate

Despite its history and negative reviews, Avant is a real, operational financial technology company, not a fake or fraudulent one.

• Accredited business: Avant holds an A+ rating from the BBB, indicating the company has a track record of resolving customer complaints.
• Serves a specific market: Avant provides access to credit for people with fair or poor credit scores, a market segment with limited options.
• Transparent pre-qualification: The application process includes a soft credit inquiry to check your rate, which does not harm your credit score.
• Reports to credit bureaus: Avant reports account activity to all three major credit bureaus, which can help customers build credit with responsible use.

The bottom line

Avant is a legitimate company that provides a financial lifeline for some people with lower credit scores. However, it operates with very high costs and has a history of questionable practices that led to a federal investigation and significant consumer frustration. It is considered a subprime lender and should be approached with caution.

• If you choose to use Avant, be sure you can afford the high interest rates and always pay your bills on time.
• Be proactive about monitoring your account for any unexpected fees or charges.
• Check your terms carefully, as the annual fee for the credit card can vary.