Avantcard is a credit card designed for people rebuilding credit or starting from scratch
Avantcard is a secured credit card issued by Marlette Funding, LLC. You put down a cash deposit, and that deposit becomes your credit limit. The card reports to all three major credit bureaus — Equifax, Experian, and TransUnion — so on-time payments build your credit history. There is no annual fee, which sets it apart from many other secured cards.
The card works best if you have limited credit history, past credit damage you are working to repair, or a credit score below 600. It is not designed for people with good credit looking for rewards or travel benefits. The main trade-off is that your money is tied up as collateral while you use the card.
Key Takeaways
- Avantcard requires a cash deposit of $200 to $2,500, which becomes your credit limit and stays in a restricted account while you hold the card.
- There is no annual fee, but the card charges interest on balances you carry, with rates varying based on creditworthiness at the time you open the account.
- The card reports to all three credit bureaus, so consistent on-time payments will raise your credit score over time.
- After 18 months of on-time payments, you may be able to convert to an unsecured card and get your deposit back, though this is not may provide.
How the deposit and credit limit work
When you open an Avantcard account, you choose a deposit amount between $200 and $2,500. That deposit is held in a restricted savings account and becomes your credit limit. For example, if you deposit $500, your credit limit is $500. You cannot withdraw the deposit while the account is open — it serves as security for the card issuer.
The deposit does earn interest, though the rate is typically very low. You will see the interest accumulate in your restricted account, but you cannot access it until you close the account or convert to an unsecured card. The deposit itself is FDIC-insured up to $250,000, so your money is protected even if the bank fails.
Interest rates and fees you will encounter
Avantcard charges interest on any balance you carry from month to month. The interest rate (called the Annual Percentage Rate, or APR) depends on your credit profile at the time you open the account. Rates have ranged from around 19% to 24% in recent years, but the exact rate you receive is determined during underwriting. You will see your specific rate in the offer before you accept it.
There is no annual fee to hold the card. There is also no fee for late payments, over-limit fees, or foreign transaction fees — though making a late payment will still damage your credit score and may trigger interest charges. If you use the card for a cash advance, that typically carries a higher APR and an upfront fee, so it is best to avoid cash advances.
Building credit history with on-time payments
The entire point of a secured card is that your payment history gets reported to the credit bureaus. Every month you make a payment on time, that positive information goes into your credit file. After 6 to 12 months of consistent on-time payments, you should see your credit score begin to rise, even if it started very low.
To maximize the benefit, keep your balance well below your limit — ideally below 30% of your credit limit. A $500 limit means keeping your balance under $150. This shows lenders you can manage credit responsibly, not just that you can make minimum payments. The lower your balance relative to your limit, the faster your score typically improves.
Converting to an unsecured card and getting your deposit back
After 18 months of on-time payments, Avantcard may offer to convert your account to a standard unsecured credit card. When this happens, your deposit is returned to you, and you no longer need collateral to hold the card. The conversion is not automatic — the issuer reviews your account and decides whether to offer it. Meeting the 18-month mark and paying on time does not may provide conversion.
If you are converted, your new card may have a different APR, credit limit, and terms. Some people see their APR drop and their limit increase; others see little change. You will receive a new offer with the updated terms before the conversion is final. If you are not offered conversion after 18 months, you can contact the issuer to ask about your options.
When Avantcard makes sense versus other secured cards
Avantcard's main advantage is the lack of an annual fee. Many other secured cards charge $25 to $95 per year just to hold them. If you are on a tight budget, that fee difference adds up. Avantcard also reports to all three bureaus, which is standard but worth confirming — some very cheap secured cards report to fewer bureaus.
Other secured cards may offer rewards (like 1% cash back on purchases) or lower interest rates if you have slightly better credit. Capital One Secured Mastercard and Discover Secured Card are common alternatives. The trade-off is usually a higher annual fee or a higher minimum deposit. If you have no annual fee budget and your credit is very limited, Avantcard is a reasonable choice. If you can afford a small annual fee and want rewards, comparing other options first makes sense.
What happens if you miss a payment or close the account
If you miss a payment, the late payment is reported to the credit bureaus and will damage your credit score. A 30-day late payment stays on your report for seven years. The issuer may also charge interest on the missed amount and may freeze your account until you catch up. Missing payments defeats the entire purpose of using a secured card to build credit.
If you close the account, your deposit is returned to you, usually within 5 to 10 business days. However, closing the account also closes your credit history with that card. Your payment history stays on your report, but you lose the benefit of an open account showing active, responsible credit use. It is usually better to keep the account open and active, even after you no longer need it for credit building, unless the card has an annual fee.
Frequently Asked Questions
Can I use Avantcard right away after opening the account?
Yes. Once your deposit is received and verified, you can use the card when ready. The entire process typically takes 5 to 10 business days from approval to receiving the physical card in the mail. Some issuers offer a temporary card number you can use online while you wait for the physical card.
What if I want to increase my credit limit?
You can request a credit limit increase by depositing more money into your restricted account. For example, if your current limit is $500 and you deposit an additional $300, your new limit becomes $800. There is no fee to increase your deposit, but the additional money is also held as collateral.
Does Avantcard report to all three credit bureaus?
Yes, Avantcard reports to Equifax, Experian, and TransUnion. This means your payment history builds credit with all three bureaus, which is important because most lenders check at least one of them when you explore for a loan or credit in the future.
What is the difference between Avantcard and a regular credit card?
The main difference is the deposit. With Avantcard, your deposit is collateral. With a regular card, there is no deposit — the issuer extends credit based on your income and credit history. Avantcard is designed for people who cannot yet may have access to for a regular card.
Can I get my deposit back before 18 months?
You can get your deposit back by closing the account at any time, but closing the account ends your credit-building opportunity. If you close after 6 months, you lose the benefit of 12 more months of positive payment history. It is usually worth keeping the account open for the full 18 months to maximize your credit improvement.