Aven Home Equity Credit Card – Many or all of the products shown here are from our partners who compensate us. This affects which products we write about and where and how the product appears on a page. However, this does not affect our ratings. Our opinions are our own. Here is a list of our partners and here is how we make money.

The credit card industry is characterized by constant change and innovation, and the Aven Home Equity Credit Card reflects its evolving nature. Part secured card, part home equity loan (HELOC), part repayment card, the Aven Credit Card is nothing if not unique.

Aven Home Equity Credit Card

The Aven card, issued by Coast Community Bank, joins a growing list of cards secured by something other than cash. However, while other alternative cards are secured by jewelry or a vehicle, the Aven credit card is backed by equity, increasing the chance of losing your home in the event of a default. It’s a risk not many consumers will take.

Martin Scorsese’s 81 Greatest Movie Characters, Ranked

As of this writing, the Aven card is only available in 31 states. Additionally, customers in Alabama, Alaska, Arkansas, Idaho, Iowa, Kansas, Louisiana, Nebraska, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota and in Wyoming are eligible for a credit limit of up to $100,000 on the Aven credit card. For everyone else, the maximum credit limit is $250,000.

Aven credit card is secured by your home. Therefore, it is necessary to have a home to qualify for the Aven card. You also need to have equity in this home, meaning the value of the property is greater than what is owed on the mortgage. Aven says the company uses automated valuation models to prove your home’s value, whereas a traditional HELOC typically requires an appraisal. The minimum credit limit on the Aven card is $7,000.

Additional requirements include a minimum FICO score of 640, which is considered fair credit, and proof of income. Applicants’ income can be verified by tax documents, payment receipts and instant bank account verification, among other methods. Aven CEO Sadi Khan said in an email that income “is one of the most important variables” the company uses to determine eligibility for the Aven card. “We want to make sure they’re going to be able to pay; we’re not interested in cardholders going bankrupt,” he said.

Delinquency, or failure to pay on a credit card for more than 180 days, is always a serious matter, but perhaps even more so in the case of the Aven card. Because the card is backed by your equity, you could lose your home as a result of default. Khan said blocking is a last resort that Aven takes only after the cardholder has been through the delinquency process for five to six months.

At Auction: Barbra Streisand

Create an account to get credit score information and personalized recommendations for the right card for you.

The style of the Aven card is a cross between a HELOC and a traditional credit card. Its hybrid nature has advantages and disadvantages. Like a primary mortgage, taking out a HELOC often involves closing costs that can include an origination fee and a home appraisal fee, among others. However, the $0 Annual Fee Aven Card requires no fees to allow you to tap into your home equity.

But tying home equity to a credit card can be a slippery slope to financial disaster.

Studies show that you are more likely to spend more with a credit card than with cash. It can be very tempting to use home equity when it is tied to a credit card, a payment method that many people use on a daily basis. The Aven card rewards rate (more on that later) encourages consumers to use the card regularly. Using a HELOC to pay for frivolous expenses that would normally break your budget can put your home ownership at risk.

The Latest — Athleisure Mag™

Yes, credit card rewards are a nice perk, but they’re not as valuable as a roof over your head.

If you want a HELOC but also the convenience of paying with plastic, the Aven card isn’t the only option. Many traditional HELOCs come with a card that can be used to make purchases or withdraw money, like a debit card, even though you won’t earn rewards.

All purchases made with the Aven credit card offer unlimited 2% cash back, great fixed price. Cashback is earned as points that can only be redeemed with a bank statement. The print credit is considered a payment against the account balance and the minimum payment due. This is a big departure from other credit cards that do not consider a bank transaction as an official payment.

Aven credit card interest rates are significantly lower than what you find on other cards. As of May 2023, the average annual credit card interest rate for cards that charge interest was 20.68%. On the Aven card, interest rates range from 7.99%-15.49%, depending on creditworthiness (from October 2023). In addition, Aven sets a cap of 18% for all cardholders, even if the initial interest rate is higher.

About: Aven Advisor: Credit Check App (ios App Store Version)

Of course, you’ll never owe interest if you pay off your credit card balances in full each month.

The Aven card can be used for balance transfers, but think carefully about consolidating your debt with this card.

At first glance, the Aven card seems like a good choice for moving debt thanks to its relatively low interest rates and 2.5% balance transfer fee. Other credit cards tend to charge at least 3% for moving debt.

However, a credit card designed specifically for balance transfers can easily save you more money, even if you factor in a higher balance transfer fee. The best balance transfer cards, like the Citi® Diamond Preferred® Card, charge exactly 0% interest on balance transfers for up to 21 months.

Little Bookstore That Could

Then there is the matter of converting unsecured debt into debt secured by your home. When you default on unsecured debt, your credit score is likely to suffer, and the creditor may garnish your wages or take you to court to recover missing money. There are dire consequences, yes, but when you default on secured debt, the lender can seize any assets backing the loan, which in the case of the Aven card is your home.

Follow Following Jae Bratton Go to My Settings to see all the authors you follow.

Jae is a writer for the credit card team at . Her writing has been published in newspapers, blogs, and an academic journal. read more

Whether you want to pay less interest or earn more rewards, the right card is out there. Just answer a few questions and we’ll narrow down your search for you.

Uniqlo’s Parent Company Bets Big On Tiny Rfid Chips

The Best Credit Cards in 2023 by Read More Why Almost All Purchases Should Be Made With Credit Cards By Virginia C. McGuire, Paul Soucy Read More

Subscribe and we’ll send you breaking articles on the financial topics you care about most, along with other ways to help you get more out of your money. If I were completely fraudulent, or just a rogue banker, I’d also take out a credit card that steals people’s equity.

Nolos Essential Guide To Buying Your First Home

A “HELOC on a credit card.” Just to clarify, a HELOC is a home equity line of credit.

Home equity lines of credit often come with high fees (usually over $1,000), minimal down payments, minimum credit limits (often at least $50,000), and take 4-6 weeks to close. With Aven, you can receive your card in just a few days in the mail, you can use it as many times for any amount under your limit, with no origination or annual fees. Best of all, you get cash for your purchases.”

I feel like I’m beating a dead horse, but we know Americans both love and hate consumer loyalty.

And unfortunately, we know why there is such a tendency to borrow. Not only are Americans addicted to consumerism, but their wages continue to exceed the basic standard of living. Just look at the last average weekly income.

The Best 10 Mortgage Brokers In Bethlehem, Pa

That being said, I can’t think of a worse credit option than borrowing against your home for things. There are no payback rewards or low barriers to entry worth this risk.

As may seem readily apparent here, not paying back a HELOC 100% can result in the loss of your home.

Since Aven is really just a HELOC in disguise, let’s imagine that the average Joe, (who has bad credit and is therefore a good candidate to line up his equity for things) is running $30k in balance versus $50k in equity of. His house is worth $212,000. Now Joe loses his job and defaults on the balance on his Aven card.

Instead, get out of debt! Then you don’t even need to borrow money or be tempted by a rotten financial product like Aven!

Fec Poised To Help Residents Use Their Stimulus To Their Best Advantage

Come here

Home equity credit card, credit equity home line loan, home equity no credit check, discover card home equity line of credit, aven equity reviews, home equity loan credit card, no credit home equity loan, home equity credit loans, home equity poor credit, low credit home equity loan, home equity credit, home equity loan credit