What the Ava Credit Card Is
Ava is a secured credit card issued by Coastal Community Bank, designed for people building or rebuilding credit. You put down a cash deposit, and that deposit becomes your credit limit — so a $500 deposit gives you a $500 limit. The card reports to all three credit bureaus (Equifax, Experian, and TransUnion), which means your payment history can help raise your credit score over time.
Unlike a debit card, where you're spending your own money directly, a credit card creates a debt you repay monthly. The difference matters: credit cards report to credit bureaus, debit cards don't. That's why secured cards exist — they let you build a credit history without the risk a bank normally takes on someone with no credit or poor credit.
Ava charges an annual fee and interest on balances you don't pay in full each month. The card comes with no rewards, no cash back, and no sign-up bonus. It's a straightforward tool for credit building, not a card meant to save you money on purchases.
Key Takeaways
- Ava is a secured card: your deposit becomes your credit limit, so you control the risk the bank takes.
- The card reports to all three credit bureaus, meaning on-time payments build your credit score over months and years.
- You pay an annual fee and interest on any balance you carry, with no rewards or cash back to offset those costs.
- After 12 to 18 months of on-time payments, you may be able to convert to an unsecured card and get your deposit back.
How Your Deposit and Credit Limit Work
When you open an Ava account, you choose your deposit amount. That deposit sits in a savings account held by the bank and becomes your credit limit. If you deposit $500, your limit is $500. If you deposit $2,500, your limit is $2,500. The deposit is yours — the bank holds it as collateral, not as a fee.
Your deposit earns interest at a rate set by the bank, though that rate is typically very low. The main point of the deposit is not to earn you money; it's to give the bank security so they'll issue you a card even if your credit is thin or damaged.
You cannot spend your deposit directly. It stays in the savings account. You spend using the credit card, and you repay what you spend from your own income or other funds. This separation is important: if you miss payments, the bank can use your deposit to cover the debt, but that's a last resort, not the normal way the card works.
Fees, Interest, and Annual Costs
Ava charges an annual fee, the amount of which varies and should be confirmed with Coastal Community Bank before you open the account. This fee is charged once per year, usually on your account anniversary, and comes out of your deposit or your bank account depending on your setup.
If you carry a balance — meaning you don't pay off your full statement balance by the due date — you pay interest on that balance. The interest rate (called the APR, or annual percentage rate) is set by the bank based on your creditworthiness and current market rates. Secured cards typically carry higher APRs than unsecured cards because the bank sees you as higher risk, even though your deposit protects them.
To avoid interest charges, pay your full statement balance by the due date each month. This is the most cost-effective way to use the card: you build credit history without paying interest. The annual fee is unavoidable, but it's the price of access to credit reporting.
Building Credit With On-Time Payments
The reason to use Ava is that your payment history reports to the credit bureaus. Every month you make a payment by the due date, that on-time payment is recorded and sent to Equifax, Experian, and TransUnion. Over months and years, a pattern of on-time payments raises your credit score.
Payment history is the single largest factor in your credit score — it makes up about 35% of the calculation. A secured card lets you build that history without needing a co-signer or a large income. You control the limit by controlling your deposit, so you can start small and prove you can manage debt responsibly.
Late payments also report to the bureaus and damage your score. Missing a payment by even one day can trigger a late fee and a mark on your credit report. If you miss a payment by 30 days or more, the damage is significant and lasts for seven years. The discipline required to use a secured card successfully is the same discipline that makes credit building work: pay on time, every time.
When You Can Convert to an Unsecured Card
After 12 to 18 months of on-time payments, Coastal Community Bank may offer to convert your Ava card to a standard unsecured card. This means you get your deposit back and keep the credit card, but now the bank is lending to you without collateral. Your credit score has improved enough that they're willing to take that risk.
Conversion is not automatic — the bank reviews your account and decides whether to offer it. If you've made every payment on time and kept your balance low, conversion is likely. If you've missed payments or maxed out your limit, conversion won't happen yet.
When conversion happens, your deposit is returned to you, usually within a few business days. You can then use that money for other purposes. The card itself stays open and continues to report to the credit bureaus, so your credit history keeps growing.
Comparing Ava to Other Secured Cards
Ava is one of several secured cards on the market. Other options include the Capital One Secured Mastercard, the Discover Secured Card, and the OpenSky Secured Visa. Each has different deposit minimums, annual fees, interest rates, and conversion timelines.
The main differences to compare are: the annual fee (some cards charge less), the interest rate (lower is better if you carry a balance), the deposit minimum (lower is better if you're starting small), and the conversion timeline (faster is better if you want to move to an unsecured card sooner). Some secured cards offer cash back or other rewards, though Ava does not.
Before opening any secured card, confirm the current fee and interest rate with the issuer directly. These terms change, and what was true six months ago may not be true today. A few minutes of research can save you money over the life of the card.
What Happens If You Miss a Payment
If you miss a payment, the bank charges a late fee and reports the late payment to the credit bureaus. A payment that's 30 days late or more becomes a delinquency and significantly damages your credit score. A payment that's 60 or 90 days late can trigger the bank to close your account and use your deposit to cover the debt.
If your account is closed due to non-payment, you lose the card and the credit-building opportunity it represents. Your credit score takes a hit from the delinquency itself, and the closed account remains on your report for seven years. The deposit may not fully cover what you owe, and the bank may pursue you for the remaining balance.
The remedy is straightforward: set up automatic payments for at least the minimum payment due, or set a phone reminder for the due date. Missing a payment is almost always a mistake, not a deliberate choice, and mistakes are preventable.
Frequently Asked Questions
Can I use Ava if I have no credit history?
Yes. Ava is designed for people with no credit history, poor credit, or credit that's been damaged. You don't need a credit score to open the account — you just need to be 18 or older, have a valid ID, and be able to make a deposit. The deposit is what the bank uses to decide whether to issue the card, not your credit score.
What's the difference between Ava and a debit card?
A debit card spends money you already have; a credit card creates a debt you repay. Debit cards don't report to credit bureaus, so they don't build your credit score. Credit cards do report, which is why they're useful for credit building. Ava is a credit card, so it builds credit; a debit card does not.
Can I increase my credit limit on Ava?
Your credit limit on Ava is set by your deposit amount. To increase your limit, you would need to increase your deposit. Some banks allow you to add to your deposit over time, though you should confirm this with Coastal Community Bank. Increasing your deposit increases your credit limit and also increases the collateral the bank holds.
What happens to my deposit if I close the account?
If you close your Ava account in good standing — meaning you've paid all balances and have no outstanding debt — the bank returns your deposit to you. If you close the account with an outstanding balance, the bank may use your deposit to cover that balance. If you've converted to an unsecured card, your deposit was already returned to you when the conversion happened.
Does Ava report to all three credit bureaus?
Yes. Ava reports to Equifax, Experian, and TransUnion. This means your payment history builds your credit score across all three bureaus, which is important because different lenders check different bureaus. Having your history on all three gives you the broadest credit-building benefit.