In the 21st century, credit cards have proved to be one of the most valuable things to manage a user’s monthly finances. Whether you are short on money or looking to buy something, a credit card solves the money hassle by helping users pay money in installments. However, major financing, like servicing with cash, suffers several drawbacks. In such cases, Aven, a credit card offering home equity that is used by thousands of users has recently made headlines. Read to know more about the credit card.
About Aven Card
Aven is the world’s first credit card to unlock and manage home equity. Known for customizing the community, it is secured, provides cash-back, and is unique.
Issued by the Coastal Community Bank, the Aven card is not secured by cash. Neither it is secured by jewellery or a vehicle; this card is backed by home. While there is a risk of losing homes by default, there are multiple risks a consumer can’t possibly take in losing homes.
Who Is Aven Card’s CEO?
Sadi Khan was born in 1985 (age 39 years; as of 2024) in Bangladesh. Brought up by two immigrant civil engineers, Sadi was raised in Toronto and Florida, respectively.
Following his high school graduation, he returned to Canada and enrolled himself at the University of Waterloo, Ontario, to study quantum computing and physics; however, he later decided to switch his career to electrical and computer engineering.
A Timeline of Aven Card
- Aven was founded in 2019 by Sadi Khan, Collin Wikman, and Murtada Shah, former product design, and engineering executives at Facebook and Square. With a mission of providing consumers with the lowest cost and convenient access, its first card, Aven Home Card, allows homeowners to access their home equity in minutes.
- In 2023, Aven grew its revenue by three times and broadened its offer by including its free mobile-first financial advisory service.
- In 2024, Aven received Unicorn status with $142 million funding for home equity credit solutions. Currently, Aven is available in Alabama, Alaska, Arkansas, Arizona, California, Colorado, Florida, Iowa, Illinois, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Mississippi, North Carolina, North Dakota, Nebraska, New Hampshire, New Jersey, New Mexico, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Utah, Virginia, Wisconsin, and Wyoming.
- The company, in 2025, targets to provide its home equity credit card services.
Things To Know About Aven HELOC Credit Card
- Secured By Your Home
A user looking forward to borrowing through an Aven credit card should own a home; this is the minimum qualification for the card. Additionally, you must have equity in the home which also means that the value of the property is higher than what is owned in the mortgage.
According to Aven, the company utilizes valuation to prove its home’s value; however, a traditional HELOC requires approval. Besides, the minimum credit provided by Aven is $7,000.
The additional requirement includes a FICO score of 640, also known as a fair credit. Among other methods, the applicant’s income is verified by tax documents and instant bank verification.
In an email, CEO, Sadi Khan, states that in Aven, income is one of the most important variables and also determines eligibility. He explained, “We want to ensure they will have the ability to pay; we are not interested in cardholders defaulting.”
- An Alternative to HELOC, for Worse and Better
The Aven card is itself a track between a traditional credit card and HELOC. Its hybrid nature came with drawbacks and benefits. Similar to the primary mortgage, taking out the home equity line of credit includes several costing disputes including origination fees and appraisal fees.
- The Purchase Reward Rate Is Higher
With an unlimited cashback of 2% every time a user makes a transaction through Aven card, it is known to have an excellent flat rate. The cashback, which is earned as points, can be redeemed in the sheet.
The points earned on the credit card do not expire.
- The Interest Rates Are Lower
Compared to other credit cards, Aven cards have a lower interest rate. As of May 2023, the average credit card annual interest rate was charged 20.68%.
Meanwhile, on average, Aven card’s interest rate ranges from 7.99% to 15.49%. Furthermore, the Aven cap APR is at 18% for all cardholders.
- Balance Transfers Are Possible
An Aven card is used for bank transfers; however, after consolidating debts with this card. While a credit card specifically has a 3% charge to move at least 3% of the debt, Aven reportedly charges a 2.5% transfer fee.
However, a credit card is designed for bank transfers and can save you money.
Is Aven Legal?
Yes, it is. Following the CEO’s decision to introduce a home equity-backed credit card, he conducted full-fledged research. Sadi Khan read the entire 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, the law aimed at taking preventive risks during the financial crisis, and spent weeks on the 850-page document.
In an article published by Forbes, Khan recalled studying home loans for five months before starting Aven in 2019. He said, “It behoves us to make sure we understand a domain very deeply.”
Aven Review
Following Aven’s launch of its services in 2019, it attracted a range of customers owing to its uniqueness, backed by home equity, best rewards, and more flexibility. As of 2024, Aven has issued over $1.5 billion in credit lines and saved its cardholders over $100 million.
Patricia, one of the featured customers on Aven’s website, gave a brief statement on how Aven helped.
Her review read, “Aven is the bomb!!! As a senior sometimes completing information online can be tedious for us. This is one of the simplest & fastest application processes ever. They provided you with all the information you need to complete the application online, which by the way only took minutes to complete.
Wrapping Up
Aven, the home equity-backed credit card, 2019, has astonished the internet with its rapid growth in less than half a decade. With helping millions of people, the credit card is now working on its aim to serve 50 states by 2025.
The above-mentioned article will give you a brief overview of Aven, its features, and more.
