Are you in need of a personal loan but find yourself stuck in the fair credit zone? Avant might just be the solution you’ve been searching for.
In this comprehensive guide, we’ll explore Avant Personal Loans (managed through Credible - more on this below), its application process, digital experience, loan performance, and how it compares to other lenders so you can make an informed decision about your financial future.
To help you with this, we’ve compiled Avant loan reviews from various sources to give you a well-rounded perspective.
Key Takeaways
- Avant Personal Loans offer a suitable option for borrowers with fair credit scores.
- Avant’s application journey is quick and simple, featuring prequalification with no impact on credit score.
- Comparing other lenders is recommended to ensure securing the best rates and fees.
We consider Avant to be one of the Best Personal Loan Companies for people with mediocre credit. They have good rates; you can learn more from the review below.
Avant is on the Credible platform, so you can quickly and easily see how Avant compares in 2 minutes or less. Don't believe us? Check out Avant on Credible here.
Introducing Avant Personal Loans
Avant is an online lending platform known for offering personal loans to borrowers with fair credit scores. Unlike traditional banks, Avant caters specifically to those with less-than-perfect credit, providing them with quick funding and flexible repayment terms. This can be a lifesaver for middle-income borrowers who find themselves in a tight financial spot and need a helping hand.
Though Avant’s personal loans may come with higher APRs and fees than other lenders, they provide a valuable financial solution for those with lower credit scores who might not be eligible for loans elsewhere. What sets Avant apart from other personal loan lenders is its online lender platform, which streamlines the application process and makes it easy for borrowers to manage their personal finances.
Avant’s personal loans particularly cater to those with fair credit scores, a point worth bearing in mind as we delve into the specifics. Borrowers with excellent credit may find better rates and terms with other lenders, but Avant is an ideal choice for those who might not qualify elsewhere due to their credit history.
What Types of Loans Does Avant Offer?
Avant only offers unsecured personal loans at this time. All loans are fixed-interest loans, so you’ll make even payments over the life of the loan.
All payments on loans from Avant are reported to the major credit reporting bureaus. Making on-time payments on the loan should boost your credit score in time.
The Application Journey with Avant
Applying for an Avant personal loan starts with prequalification, which involves a soft credit check that won’t impact your credit score. This allows you to see the potential loan amount, annual percentage rate (APR), repayment term, and monthly payment options before committing to the full application process.
When you choose to apply, you’ll find Avant’s online application process to be straightforward and uncomplicated. You’ll need to provide information about:
- Your income
- Employment
- Bank account
- Any supporting documents like pay stubs or bank statements
The entire process can take just a few minutes, and you could receive a decision on your loan application within a few hours or days.
After approval, the loan proceeds will be deposited into your bank account within one business day. Your first monthly payment will be due approximately 30 days after the funds have been deposited.
Qualifying for an Avant Loan
To qualify for an Avant personal loan, you’ll need a minimum credit score of 550-580, a valid Social Security Number, no active bankruptcy filings, and a monthly net income of at least $1,200. Avant accepts income from many avenues, such as employment, alimony, retirement, child support, and Social Security payments. We pride ourselves on being able to make financial products available to a diverse range of incomes.
When evaluating your application, Avant will also consider your debt-to-income ratio, which is calculated by adding your total monthly debt payments and monthly housing payments (like rent), and then dividing that sum by your total monthly income. This ratio helps Avant determine your ability to manage the loan and make monthly payments on time.
Bear in mind meeting the minimum requirements doesn’t assure approval. Avant also evaluates factors like your payment history and creditworthiness. However, a credit score of 580 or higher significantly increases your chances of being approved for an Avant loan.
Avant's Digital Experience
Avant’s digital experience is designed to make managing your loan as easy as possible. Their user-friendly online platform and mobile app allow you to access your loan information, make payments, and even change payment dates up to two times during the repayment term.
Unlike some other lenders, Avant does not offer rate discounts or co-signer options, a point to consider. This means that if you’re looking for a loan with a lower interest rate or need a co-signer to improve your chances of approval, you may need to consider other options.
Evaluating Avant's Loan Performance
When it comes to loan performance, Avant offers a mixed bag for borrowers. On the one hand, they provide fast funding and flexible repayment terms, which can be a significant advantage for those in need of quick cash and personalized payment plans. On the other hand, their APRs and fees may be higher than other lenders, making them a less competitive option for some borrowers.
The range of APRs offered by Avant varies from 9.95% to 35.99%, depending on factors like credit history and income. This means that borrowers with better credit scores and higher incomes may be eligible for lower rates, while those with less-than-perfect credit may face higher APRs.
Understanding Avant's Fee Structure
In addition to the interest rates, borrowers should be aware of Avant’s fee structure. They charge an administrative fee of up to 4.75%, a $25 late fee (if the payment is more than ten days overdue), and a $15 insufficient funds fee. However, there are no prepayment penalties, so you can pay off your loan early without incurring any additional fees.
The administration fee is factored into the loan amount before disbursem*nt, which means that you’ll receive a slightly lower amount than the approved amount. This factor should be considered when assessing your borrowing needs and the impact of fees on your overall loan cost.
Customer Feedback on Avant
Customer reviews of Avant are a mixed bag. As of this writing, on Trustpilot, they have an "Excellent" rating of 4.6 stars, with many customers praising their integration of technology, analytics, and customer service, which enables a fast and online loan application process.
However, their satisfaction ratings are lower in J.D. Power surveys, with some customers citing poor loan terms and billing/payment practices as contributing factors.
Additionally, Avant has received complaints registered with the Better Business Bureau (BBB) and Consumer Financial Protection Bureau (CFPB). This highlights the importance of researching and understanding the terms and conditions of your personal loan before signing on the dotted line.
Is There Any Concerning Fine Print on Avant's Loans?
The biggest area of concern for most borrowers is the upfront “administration fee.” This fee can range up to 4.75% of the loan amounts, though the exact amount depends on your state, your credit score, and more.
Upfront fees not only raise the effective APR on a loan, but they also guarantee that you’ll have to pay a good amount in fees even if you can pay the loan off early and avoid excessive interest.
Comparing Avant With Other Lenders
If you’re contemplating a personal loan, comparing Avant with other lenders is crucial, ensuring you secure the best deal. Some alternative lenders include:
- LendingClub
- Upgrade
- LightStream
- SoFi
- Earnest
- Lending Point
- Upstart
All of which offer different loan funds, amounts, rates, and terms.
Just to give you an example, Upgrade offers the following:
- Loan amounts up to $50,000
- Financing options for debt consolidation and home improvement projects
- Option to have creditors paid directly on debt consolidation loans, with a rate discount for this service
To qualify for this loan, you will need a credit score of 560 or higher.
By contrast, Avant only offers unsecured loans.
Another lender, Upstart, permits borrowers with a score as low as 300 to secure a personal loan, whereas Avant necessitates a minimum credit score of 550-580. Meanwhile, SoFi offers more extensive loan amounts and more competitive APRs than Avant, making it a better choice for borrowers with higher credit scores.
Lastly, LightStream offers lower rates to borrowers with the highest credit scores but has stricter eligibility requirements than Avant. LendingClub, on the other hand, offers more competitive APRs than Avant and does not impose origination, prepayment, or late fees.
The Final Word on Avant Personal Loans
Ultimately, Avant Personal Loans provide a suitable option for borrowers with fair credit scores who need quick funding and flexible repayment terms. Their benefits include:
- Streamlined application process
- User-friendly digital experience
- Easy management of personal finance
- Timely payments
Exploring other lenders could be beneficial for those with superior credit scores, potentially securing lower rates and fees. Don’t hesitate to compare Avant’s personal loans with other options available in the market, either.
In conclusion, Avant Personal Loans can be a lifesaver for those with fair credit scores who need quick funding for emergency expenses or to consolidate credit card debt. Just make sure to carefully review the loan terms, APRs, and fees before committing to ensure you’re making the best financial decision for your unique situation.
Frequently Asked Questions
Is Avant a legitimate loan company?
Avant is a legitimate loan company as it is registered to do business in 44 states, provides personal loans and credit cards issued by WebBank in most states with fair credit score requirements, and has lent $8 billion to borrowers since its 2012 founding.
Is it hard to get a loan from Avant?
Avant loans are accessible to borrowers with a minimum credit score of 580, making them a good option for those with poor credit. Their APRs range from 9.95% to 35.99%, which is still more favorable than a payday loan, and customers may receive funds the next business day after approval.
What credit score is needed for Avant?
Avant requires a minimum credit score of 550 to qualify for a loan. Most customers have scores between 600 and 700, making Avant competitive with other low-credit lenders like OneMain Financial.
How fast does Avant approve loans?
Avant's loan approval process is quick and convenient - you can get approved in a few minutes and receive your funds as soon as the next business day. In most cases, it takes 1-2 business days to get approved and another 1-2 business days for the funds to arrive.
Are there any fees associated with Avant Personal Loans?
Yes, Avant personal loans come with some fees, including administrative fees of up to 4.75%, a $25 late fee, and a $15 insufficient funds fee. However, there are no prepayment penalties.
