Aven Financial, Inc., also known as Aven Financial Technologies, Inc., was founded in 2019 with a head office in California, United States. It provides home equity-backed credit cards. It allows its cardholders to cash out online and offers low home equity rates. You can also use it through a mobile application.
But people want to know about the card’s legitimacy and are curious to know if it is safe to use.
In this article, we will honestly talk about whether an Aven credit card is legit or a scam. We’ll also talk about its various features, like pre-approval and a cashback rate.
Quick Facts
The Aven card is similar to a home equity line of credit (HELOC) but without any fees. Remember, if you don’t pay back what you borrow, you risk losing your house! Here’s a list of quick facts about this card:
- Aven offers the biggest loan of up to $250,000, but some states have a lower limit of $100,000.
- A credit score of at least 640 is required to qualify for this loan.
- The repayment terms vary depending on how you use the loan. It can be similar to a credit card with ongoing payments, or you can choose a fixed term of 5 to 10 years for a lump-sum payout.
- You can access some funds quickly; $10,000 is available right away. You’ll receive the full amount within 10 business days.
Is the AVEN credit card legit or a scam?
The Aven credit card is legit if you have your own home and want a credit card with a lower interest rate. Just make sure you are okay with putting up your home as security. There are other credit card choices, though, if you don’t own a home or are afraid of putting it at risk.
Let’s prove the above statement, “AVEN credit card is legit,” by examining its benefits and drawbacks. So that you may have a clear idea about its legitimacy before applying for it.
AVEN Credit Card Benefits
- Here’s what makes an Aven home equity loan great:
- There are no annual, origination, appraisal, notary, or pre-payment penalty fees.
- It offers 2% Unlimited Cashback, and you can start at $0 to get this card
- Get approved in as fast as 15 to 20 minutes.
- Qualify with only 12% home equity, compared to the usual 15-20%.
AVEN Credit Card Drawbacks
- You need to own a home to qualify for this card.
- Unlike most credit cards, if you don’t pay back the Aven card, they can go after your house.
- If your credit line is more than $100,000, you have to spend at least $50,000 in the first three months after opening the account. It might be too much to handle in a short amount of time.
- Some states don’t offer Aven, and in 15 states, the most you can borrow is $25,000, and there is a 2.5% fee for moving credit card debt or taking cash out with your Aven line.
Note: The Aven card is only offered in 31 states as of July 13, 2024. Cardholders in Alabama, Alaska, Arkansas, Idaho, Iowa, Kansas, Louisiana, Nebraska, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, and Wyoming can get a loan up to a $100,000 credit line on the Aven credit card. For the rest of the regions, the maximum credit limit is $250,000.
Aven Credit Card Pre-Approval
The Aven card is a unique financial service that works like a regular credit card. This card allows homeowners to use their home equity to pay lower interest rates than conventional credit cards. The pre-approval process for the Aven credit card includes the following features:
- Home Equity Requirement: To be eligible for the Aven card, you must own a home with sufficient equity. Aven uses home equity as collateral to offer attractive interest rates and credit limits of up to $250,000 for some users.
- Credit Score and Income Verification: Applicants must have a minimum FICO score of 640 and submit evidence of income. The prequalification process does not affect your credit score because it is a soft credit check. According to Aven’s CEO, income is a big deal for them. They want to make sure you can afford the repayments and avoid missing payments altogether.
- Missing payments on a regular credit card is bad, but it’s even more serious with the Aven card. Since your home secures this card, you risk losing your house if you can’t pay for a long time (over 5 months). Aven will try to help you get back on track before taking your house, but it’s a possibility to be aware of.
- Interest Rates and Fees: A variable APR of 7.99% to 15.49% (depending on creditworthiness) that is lower than typical credit cards applies on Aven card. However, there are no origination costs, annual fees, or prepayment penalties. Additionally, the card incurs a 2.5% fee per transaction on cashouts and balance transfers. The best way to avoid interest charges altogether is to pay your balance in full each month.
- Rewards and Benefits: Users can earn an unlimited 2% cash back on purchases for their daily spending. The card also provides flexible repayment options and has no annual fees. You get cash back as points that never expire, but you can only use them to lower your bill.
- Risks: Using the Aven card for things you can’t afford could put your house at risk. Remember, even though credit card rewards are nice, they’re not worth losing your home!
So, it is too risky to use this card. You need to make sure that you can make payments on time before using this card.
How Do I Cancel My AVEN Credit Card If Needed?
To close your Aven credit card account:
Talk to the customer service representative at 415-582-6613 or email support@aven.com and ask him to cancel your AVEN card and its related account. They will check for any remaining debt associated with your account, so make sure you pay off any amounts on your card. Once the cancellation process is over, get a written confirmation of the cancellation of your card for your records.
Conclusion
The Aven credit card can be a great choice for homeowners who want a credit card by giving home equity. However, you must analyze the upcoming risks and ensure that they are appropriate for your financial circumstances. Danger is always on your head; the Aven card is linked to your home. If you can’t pay your Aven card debt, they could take your house! Regular credit cards can’t do that. If you’re worried about losing your home, you might consider regular credit cards out there like the Bank of America Platinum Plus Mastercard Business Card or the Capital One Platinum Secured Credit Card.
Is the Aven Credit Card safe?
Using any credit card involves inherent risk, and the Aven Card is no exception. Because it’s tied to your home equity, defaulting on payments could lead to foreclosure. It’s important to carefully consider the risks and terms before applying.
Is it hard to get approved for an Aven Card?
Approval depends on your home equity and financial situation. The Aven Card might be easier to obtain than a traditional credit card with a high limit, but it’s not guaranteed.
Does the Aven Card have an annual fee?
No, the Aven Card currently does not have an annual fee.
Does the Aven Card offer any rewards?
The Aven Card offers unlimited 2% cash back on purchases.
