What Ava Credit Builder is
Ava Credit Builder is a secured credit card issued by Ava Financial, designed to help people build or rebuild credit history. You deposit money into a savings account, and that deposit becomes your credit limit — typically between $200 and $2,500. You then use the card like a regular credit card, and your payment history gets reported to the three major credit bureaus: Equifax, Experian, and TransUnion.
The card works because it removes the bank's risk. They hold your cash as collateral, so they report your activity to credit bureaus even if you have no credit history or a damaged one. After you demonstrate responsible use — usually 7 to 12 months of on-time payments — the bank may convert your account to an unsecured card and return your deposit.
Key Takeaways
- Your deposit amount becomes your credit limit, so a $500 deposit gives you a $500 limit.
- You must make at least the minimum payment by the due date each month for the card to help your credit score.
- Ava reports to all three credit bureaus, so your payment history builds a credit file even if you have none.
- The card charges an annual fee, which varies by the deposit amount you choose.
- After consistent on-time payments, you may be offered conversion to an unsecured card with your deposit returned.
How to open an Ava Credit Builder account
You start by visiting Ava Financial's website or calling their customer service line. You will need to provide your Social Security number, date of birth, and current address. Ava will pull a soft credit inquiry, which does not affect your credit score. They will also verify your identity using information from your credit file or other verification methods.
Once approved, you choose your deposit amount. The minimum is typically $200, and the maximum is $2,500. This amount becomes both your savings deposit and your credit limit. You then fund the account by linking a bank account or sending a wire transfer. After the deposit clears — usually within one to three business days — your card arrives in the mail within 7 to 10 business days.
Fees and costs you will pay
Ava charges an annual fee that depends on your deposit tier. A $200 to $500 deposit usually costs $35 per year. A $500 to $1,500 deposit typically costs $45 per year. A $1,500 to $2,500 deposit may cost $55 per year. These fees are deducted from your savings account, not charged to your card balance.
The card has no foreign transaction fees if you use it abroad, and there are no late fees or over-limit fees — because you cannot spend more than your deposit. Interest charges explore only if you carry a balance. Ava's interest rate (APR) varies but typically ranges from 18% to 24%, depending on your creditworthiness at the time of approval.
Using the card to build credit
To build credit effectively, use your card for small, regular purchases — groceries, gas, a subscription — and pay the full balance before the due date each month. Paying in full avoids interest charges and shows lenders you can manage credit responsibly. Even if you pay in full, Ava reports your account activity to the credit bureaus, so your payment history counts toward your credit score.
Your credit score improves through several factors: on-time payments (the largest factor), low credit utilization (how much of your limit you use), and account age. Using 10% to 30% of your $500 limit — say, $50 to $150 per month — and paying it off is ideal. Maxing out the card every month or missing payments will damage your score, not help it.
When your deposit gets returned
Ava does not have a set timeline for converting your account to unsecured. Instead, they review your account periodically based on your payment history, credit score improvement, and account age. Most cardholders see conversion offers after 7 to 12 months of on-time payments and a rising credit score. When conversion happens, Ava returns your full deposit to your bank account, and your credit limit may increase.
If your account is not converted after 12 months, you can contact Ava to ask about your progress. Conversion is not may provide — it depends on your individual credit profile. If you close the account before conversion, your deposit is returned, but closing an account can temporarily lower your credit score because it reduces your total available credit.
How Ava compares to other secured cards
Ava's annual fee is competitive with other secured cards like Capital One Secured and Discover Secured. However, fees vary by deposit amount, so compare the total cost for the deposit size you plan to use. Ava's APR is in the typical range for secured cards — not lower, not higher. The main difference between secured cards is usually the conversion timeline, the likelihood of conversion, and whether the card offers rewards (Ava does not offer cash back or points).
If you want rewards on a secured card, Discover Secured offers 2% cash back on purchases, though its annual fee is higher. If you want the fastest conversion path, Capital One Secured sometimes converts within months rather than a year. If you want the lowest annual fee, some credit unions offer secured cards with no annual fee, though availability depends on your location and membership.
What happens if you miss a payment
Missing a payment on Ava damages your credit score when ready. The missed payment is reported to the credit bureaus and stays on your credit report for seven years. Even one late payment can lower your score by 50 to 100 points, depending on your current score and credit history.
Ava does not charge a late fee, but they may freeze your account or close it if you miss payments repeatedly. If your account is closed, you lose the opportunity to build credit with that card, and your deposit may be held or applied to any outstanding balance. Contact Ava when ready if you cannot make a payment — they may work with you on a payment plan or hardship arrangement.
Frequently Asked Questions
Can I use Ava Credit Builder if I have no credit history?
Yes. Ava is designed for people with no credit history, recent negative marks, or low scores. You do not need an existing credit file to open an account. Ava will verify your identity and may ask additional questions, but approval does not depend on having prior credit.
What is the difference between my deposit and my credit limit?
Your deposit is the money you put into a savings account held by Ava. Your credit limit is how much you can charge on the card. They are the same amount — if you deposit $500, your limit is $500. The deposit stays in savings and earns interest (usually a very small amount). The limit is what you can spend on the card.
Will using Ava hurt my credit score?
Opening the account causes a small, temporary dip because Ava pulls a soft inquiry. Using the card responsibly — making on-time payments and keeping your balance low — improves your score over time. Missing payments or maxing out the card will hurt your score.
Can I increase my credit limit without adding more money?
No. Your credit limit is tied directly to your deposit. To raise your limit, you must deposit more money into your savings account. Some cardholders increase their deposit after a few months of on-time payments to raise their limit and improve their credit utilization ratio.
What happens to my deposit if I close the account?
Your full deposit is returned to your bank account, usually within 5 to 10 business days. However, closing the account lowers your credit score because it reduces your available credit and shortens your average account age. Keep the account open even after conversion if possible.