This offer is no longer available on our site: Aven Home Equity Credit Card
Aven Home Equity Credit Card at a glance
- Fixed or variable rate: Variable, but fixed available for cash-outs
- How to withdraw funds: Credit card or cash out to bank (for a 2.5% fee)
- Origination fee: None
- Loan-to-value ratio: Varies
- Time to fund: About seven business days
The Aven Home Equity Credit Card combines features of a traditional HELOC and a credit card, allowing you to tap into your home equity and take advantage of lower interest rates than you’d typically find with a credit card.
Pros
- Earn 2% cash back on purchases
- Prequalification application doesn’t affect your credit scores
- Fast application
- Credit limit of up to $250,000
Cons
- Need strong credit for lowest rate
- Variable interest rate can be risky if rates are rising
- 2.50% fee on cash outs and balance transfers
5 things to know about Aven
Let’s take a look at some of the features of the Aven Home Equity Credit Card.
1. Combines features of a HELOC and a credit card
The Aven Home Equity Credit Card allows you to access your home equity using a credit card. As part of the approval process, the company evaluates the amount of equity you have in your home, as well as other factors such as your credit, income and debt obligations.
Using your home as collateral allows Aven to provide competitive rates compared to many standard credit cards.
2. You can transfer cash or use your Aven Home Equity Credit Card to pay off other debts
In addition to accessing your home equity using a credit card, Aven also allows you to transfer cash to your personal bank account and repay it at the same rate as purchases made with the card. You can also use the Aven Home Equity Credit Card to pay off other debts, such as personal loans or high-interest-rate credit cards.
But keep in mind that a one-time 2.50% transfer fee applies. That number can add up if you’re transferring a large amount.
3. It comes with flexible repayment options
Unlike a home equity loan, the Aven Home Equity Credit Card allows you to pay only for the amount you actually use. Charges made using the credit card are subject to a variable interest rate and require a minimum monthly payment of 1% of your statement balance, plus interest.
For cash outs, you can choose fixed monthly installment payments instead of monthly payments based on a variable rate. Aven offers fixed payments with terms of five or 10 years, depending on the amount you’ve borrowed. A one-time 2.50% transfer fee applies.
4. Easy to get started
You may be able to qualify for an Aven Home Equity Credit Card in as little as 15 minutes, according to the company. If approved, you can expect to get your card within seven business days and start using it to make purchases right away.
5. No annual fee
With the Aven Home Equity Credit Card, you won’t pay an account closing fee, applications fee, prepayment penalty or annual fee. But there’s a $29 late fee if you fail to make your minimum monthly payment on time.
Is getting a HELOC a good idea?
A home equity line of credit can be a convenient way to access the equity in your home. It allows you to use a checkbook or card to pull out money as you need it, up to a predetermined maximum amount. You’ll want to consider if it makes more sense than a cash-out refinance, which will depend on current rates, your credit and the amount you want to borrow.
You can use a HELOC for a variety of purposes, such as financing home repairs or paying off higher-interest debt. Since a HELOC allows you to take out only what you need, when you need it, it may help you to avoid paying unnecessary interest.
But there are some potential drawbacks to consider. For example, variable rates and payments can make it difficult to budget for your monthly payments. Plus, since your home serves as collateral for the loan, the lender could foreclose on it if you fail to make your payments.
Who is an Aven Home Equity Credit Card good for?
An Aven Home Equity Credit Card may be a good option for homeowners who have equity in their home, excellent credit and the need to access funds quickly. The transfer option may be appealing to people who want to pay off higher-rate debts. And the credit card is likely to attract people who are looking for competitive rates and a convenient way to tap into their home equity.
Not sure if Aven is right for you? Consider these alternatives.
- Alliant Credit Union: Alliant may be worth considering if you prefer no closing costs or appraisal fees.
- Figure: Figure is a good option for people who want fixed-rate HELOCs with high credit limits.