Avant Personal Loans Pros and Cons
- Next Day Funding
- Accepts those with Low Credit Scores
- Only Does a Soft Credit Check
- Secured Personal Loans Offered
- Origination Fees
- Cannot Co-Sign a Loan
- Does Not Accept Joint Loan Applications
What Is Avant?
Avant is an online lending institution that provides loans to borrowers who have lower than average credit scores.
Most of their loan options are fairly flexible, and loans through this institution let you borrow up to $35,000 for between two and five years.
Naturally, APR rates can get higher than average rates for good credit loans, up to 35.99%. Luckily, Avant doesn’t charge any prepayment penalties, giving their loans a little more flexibility than average.
How Does Avant Work?
When you apply for a loan through Avant, you’ll be approved based on your credit history and other factors, including your current state of employment.
Avant will only use a soft credit check to examine your credit score unless you are approved (in which case a hard credit inquiry will follow). Should you be approved for a loan, you’ll receive your cash very quickly, possibly within the next day, through an ACH transfer.
Because Avant is an online-only institution, you can visit a branch but can access customer services through the online website. All of Avant’s personal loans come with fixed-rate APRs that range between 9.95% and 35.99% based on the loan’s term length and your credit score.
The majority of borrowers from Avant have credit scores between 600 and 700, although they do sometimes accept borrowers with lower scores than this. All Avant customers can also access the proprietary Avant app, which is available for iOS and Android devices.
You can use this mobile app to track your payments, view your payment history, or even receive notifications about upcoming payments.
Avant Personal Loan Features and Benefits
To get a better idea of whether Avant will be a good choice for your financial situation, let’s take a closer look at some of this institution’s features and benefits for its loans.
Fast Funding Time
As mentioned, Avant is known for funding its borrowers much more quickly relative to other lenders. If your loan isn’t particularly big, you may receive it within 24 hours.
Even if this is the case, you should receive your loan money within 2 to 3 business days at maximum.
Therefore, these personal loans could be good if you have a big upcoming purchase you need to make ASAP.
Competitive Rates from Multiple Lenders
Avant has relatively competitive APR rates when you look at other low-credit lenders, such as Upgrade.
In this example, Upgrade’s estimated APR rates range between 5.44% and 35.47%. On the other hand, One Main Financial has an APR range between 18% and 35.99%.
Seen in this light, even Avant’s high potential fixed APR rate is not too tough to stomach since it would be close to what you would have to pay with another lending institution anyway.
Flexible Payment Date
One of the biggest benefits of an Avant personal loan is the flexibility of the payment date. All Avant customers can change the payment date for their loans at any time, and this lender doesn’t limit how many times you can change your payment date.
For example, if your payday changes, you can then change your loan payment date as well to ensure you always have enough cash to make a minimum monthly payment.
Additionally, Avant allows you to repay your loan without incurring any extra fees. If you want to pay down the loan ASAP, you can make extra payments or pay off the loan in its entirety, whatever you like.
As you can see, Avant offers excellent payment flexibility.
Serves those with Bad Credit
There are very few loans available to those with low or bad credit, and Avant offers significant benefits to many other bad credit lenders in the industry.
Clear Industry Leader
Avant has carved out a niche for itself by providing flexible lending opportunities to those with less than stellar credit scores. Because of this, many of Avant’s major benefits or features can’t be found anywhere else.
Strong Customer Service
As mentioned, you can contact Avant’s customer service team at any time.
If you want to get in touch with a representative, there are several options, such as calling between Monday and Friday from 7 AM to 10 PM Central or calling on Saturday and Sunday from 7 AM to 8 PM Central.
Alternatively, you can contact Avant through email and get an answer to your question that way.
Avant Personal Loan Terms and Eligibility Requirements
Avant offers unsecured personal loans for amounts between $2000 and $35,000. Note, however, that your minimum loan amount could be different depending on your state.
You’ll also get a better APR from the available range if you have a higher-than-average credit score.
All loans from Avant have repayment terms between 24 and 60 months, although you are free to pay your loan off ahead of schedule or make extra payments without incurring any fees.
Typically, you’ll are more likely to be approved for an Avant loan if you have a credit score of 600 or above.
Having a steady income and a long credit history will also help you qualify for a personal loan from Avant.
How to Apply for an Avant Personal Loan
Applying for a personal loan from Avant is quick and easy, thanks to its simplistic application process.
First, visit the Avant website and fill out the initial application. You’ll need to provide some personal information, like your Social Security number, address, income details, and what you will use the loan for.
Avant allows you to take out a personal loan for almost anything, including paying off debts, paying for a wedding, buying a new TV or car, and so on.
Avant will perform a soft credit check, which won’t affect your credit score. Then Avant will generate a loan agreement that you can review before accepting the offer.
Should you choose to move forward, you will need to create an online Avant account.
Next, verify your personal information and submit any required documents. Avant will ask you another few questions to verify your identity.
The documents you’ll submit will include proof of your income and contact details for your employer.
After the loan is approved, which should take just a few minutes if you have your materials together, you can sign the loan agreement and get your funds within 24 hours or 3 business days.
Does Avant Charge Any Fees?
Yes, unfortunately. This is one of the big downsides to taking out a loan from Avant. For example, all borrowers are charged an administration or origination fee that can go up to 4.75% of your total loan proceeds.
While you don’t have to pay this out of your own pocket, it does minimize how much money you actually get from Avant.
Avant also charges late fees of $25 and $15 “returned payment” or “dishonored payment” fees. Keep all these fees in mind when taking a loan from Avant to make sure you’re prepared to accept these risks.
How Does Avant Compare to Other Lenders?
Although Avant is an industry leader when it comes to loans for borrowers with fair to poor credit, let’s take a look at some of this lender’s most direct competitors to compare what they offer.
#1. Payoff vs. Avant
Payoff offers personal loans if you have a minimum credit score of 640, though loan amounts start at $5000.
These loans include origination fees but don’t include late fees. However, since these loans are more difficult to qualify for, Payoff is best seen as a step up from Avant loans once your credit score improves rather than a direct competitor.
>> More:Payoff Personal Loans Review
#2. Avant Personal Loans vs. Upgrade Personal Loans
Upgrade Personal Loans are available if you have even lower credit than 600.
Upgrade only requires a minimum credit score of 580 for you to qualify for a loan between $1000 and $50,000. This lender also provides longer loan terms of between 3 to 5 years compared to Avant.
With a slightly lower maximum APR rate compared to Avant, Upgrade could be a good choice if you have a lower-than-average credit score and don’t care too much about being able to repay your loan early without incurring extra fees.
>> More: Upgrade Personal Loans Review
#3. Prosper vs. Avant
Prosper potentially offers lower APR rates compared to Avant, sometimes as low as 6.95%. However, it’s harder to qualify for loans from Prosper, as you need a credit score of at least 640 and a debt-to-income ratio of 49% or less (i.e., you have to make more than you owe). If you do qualify, you can borrow up to $40,000 from Prosper with 3 to 5-year terms.
Thus, Prosper may be a better choice overall if you have subpar credit but not quite as low as 600, in which case Avant may still be a better choice.
>> More: Prosper Personal Loans Review
#4. Best Egg vs. Avant Personal Loans
Best Egg offers minimalist loans to those with minimum credit scores of 600 and lower than average maximum APRs of 29.99%.
These loans are primarily available to borrowers who want to consolidate the debt from other loans, and they can find you within one business day.
In this light, Best Egg is a major competitor to Avant, though it has a downside in that you can only choose between two repayment term options.
>> More: Best Egg Personal Loans Review
Frequently Asked Questions
What Personal Loans are Offered by Avant?
Avant offers personal loans for various needs, including emergency repairs, big purchases, debt consolidation, and more.
What Credit Score Is Needed for Avant?
You need a minimum credit score of 600 to qualify for a loan from Avant.
Does Avant Check Your Credit?
Yes, Avant does both a soft and hard credit check throughout the loan application process.
How Long Does Avant Take to Approve a Loan?
Avant usually approves loans within a few minutes to an hour.
Can I Apply for a Second Avant Loan?
Yes, but only after you have paid off your first Avant loan.
Bottom Line: Avant Personal Loans Review
All in all, Avant’s personal loans are some of the best in the industry for those with subpar credit, although the extra fees that come along with one of their contracts should be avoided if possible.
Remember that you can always apply for a loan and see if you’ll be approved before signing on the dotted line.
If you have credit around 600 or so and want a loan with a flexible repayment date, plus the ability to repay your loan early, Avant could be perfect for you!