Avant Personal Loans Review

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Avant Personal Loan

Overall Rating

9

Bottom Line

Avant may have higher rates than some of the other loan providers on the market, but that doesn’t mean you should rule them out. Good customer service and flexibility over changing payment amounts and dates are massive plus points, especially if you’re concerned about being able to make your monthly payment schedule.

Pros

  • Payment Due Date Flexibility
  • Low Credit Score Requirement
  • Good Customer Service

Cons

  • Higher Fees
  • Higher Interest Rates

Payment Flexibility

10.0

Credit Score Requirement

10.0

Fees

8.5

Loan Options

7.5

Sometimes we all need a little extra cash for that upcoming event, whether it’s a wedding, a car, or you need to consolidate your existing debt.

If your financial situation is slightly problematic, chances are that your credit history is also looking worse. That can make it hard to get approved for the loan you need to turn things around – but luckily, companies like Avant are here to help by making things easier for low-credit borrowers.

If you have a good credit score, then you can probably find a better loan elsewhere, but otherwise, Avant is a great option.

Let’s take a look at the characteristics of their loans, who they’re best suited to, and how to start your application.

What is Avant?

Avant is an online lending company that was established in 2012, making them a relative newcomer to the world of loans.

Nonetheless, the company was always in good ends – its co-founders include a serial entrepreneur and previous employees of other successful technology platforms.

Avant began after the founders went through the prestigious Y Combinator accelerator startup program and it continues to be supported by Fintech investors.

How Does Avant Work?

The prime focus of Avant is on helping middle-income individuals who might struggle to obtain loans with fair rates if they go down the traditional lending route.

To determine whether a borrower is creditworthy, Avant uses customer analytics to ensure their service is continuously giving the best service possible. In classic tech startup style, their products go through a constant process of iterative development to make sure their software is fit for purpose.

Since then, they’ve lent out more than $5 billion to more than 800,000 people, making it one of the leading platforms for personal loans. They currently operate completely online, with no physical branches, and even the majority of employees work online.

Avant Personal Loans

avant personal loansAvant is a personal loan specialist, and all of their loans are unsecured. Their loans can’t be used to fund a business, unlike some personal loans, but most other purposes are plausible options.

The most common reason for choosing them is debt consolidation, but users also use Avant loans for more everyday reasons, like covering emergencies or improving your home.

Avant Personal Loan Options:

Loans can be taken out with a value between $2,000 and $35,000 and a term of 24 to 60 months.

You’ll have fixed payments over the course of your loan, meaning you know what to expect right from the start – this is the advantage of switching from multiple debt sources to a single Avant loan.

Avant is reasonably flexible when it comes to repayments. Many lenders incentivize their borrowers to use auto-payment to pay instead of manual payments, but Avant doesn’t partake in this: whichever method you use, it will cost you the same. However, you can still activate the automatic payment option if you find it useful.

If you make six months or more of payments on time, you might be able to qualify for refinancing your loan at a lower rate. It’s not completely clear what else you need to do to be eligible for this, but it’s definitely worth trying to apply if your credit score is bad now, but you’re confident of making your loan payments.

Avant Mobile App

You can manage your loan through their app, which is available for both Apple and Android devices.

Avant Mobile App Features Include:

  • Change Payment Dates
  • Change Payment Amounts
  • Change Payment Due Dates

Avant Interest Rates

These are all fixed-interest, which means your APR (annual percentage rate) will remain the same throughout the course of the loan.

APR ranges between 9.95% 35.99%, which includes an origination fee between 0.95% and 4.75%.

There’s also a $25 late fee, a $15 fee for declined payments, and up to a 4.75% fee for administration.

However, if you make three consecutive payments on time, then a late payment will be forgiven, and you can receive a refund. There’s no prepayment fee for paying off early, but you can’t pay your loan back directly to creditors.

Late fees and origination fees are standard amongst most lenders who aren’t top-tier, but the high administration fee is a huge disadvantage. However, it may not be as high as 4.75%, depending on which state you live in.

This means if you take out a loan of $5,700 for a term of 36 months, you will end up with an APR of 29.95% and monthly repayments of $230.33. For those with a credit score of 700 or more, you’ll probably be offered a rate as low as 10%.

Because their loans are unsecured, you won’t have any collateral taken from you if you end up missing a payment, but you could theoretically get sued by them.

Avant Fees:

  • Origination Fee: Between 0.95% – 4.75%
  • Late Fee: $25
  • Declined Payment Fee: $15
  • Administration Fee: up to 4.75%

Avant Loan Application Process

Since Avant is an online lender, their entire application process can be carried out from the comfort of your home. It’s a quick and easy process that may only take a few days.

Obtaining Your Rate

To start your application, just head to the Avant website and click on the option to check your loan options.

This will prompt you to enter in some personal information like your address, email, phone number, social security number, and monthly income. You also need to tell Avant the type of loan you want to take out and what you want to use it for.

When you submit this form, you won’t be applying for a loan, just checking your rates and obtaining pre-approval. This means it will only result in a ‘soft pull’ and have no impact on your credit score.

Because Avant’s main target audience is those with a less-than-perfect credit score, their eligibility requirements are fairly lenient. There’s no strict credit score requirement, but realistically you’re more likely to get approved if you have a credit score of 580 or more.

On average, their borrowers have a credit score of 600-700 and an income of $50,000 to $100,000. If you’re not sure what your credit score is, it’s a good idea to check before you start looking at loans – Credit Sesame is a good place to start.

Avant Personal Loan Requirements:

  • Must live in the US
  • Be at least 18 years old
  • Have a verifiable source of income
  • Live in a state other than Iowa, Colorado, or West Virginia

To prove you meet these requirements, you’ll have to submit documentation to prove employment or income later on in the process.

Loan Application

If you pass the pre-approval, a page will open, letting you know the different loan options you’ve been approved for. Each will include information about monthly repayments, interest rates, and repayment length. You can then select the loan you’d like to choose.

At this point, you’re ready to make your official application. Avant will carry out a hard credit check once you go ahead with this, so don’t apply unless you’re sure you want to go forward with the loan.

You’ll then be prompted to upload documents confirming your identity, like proof of address, and enter in your repayment information and dates.

Don’t worry if you weren’t pre-approved, as there are other loan providers out there who might cater to your needs better.

Loan Closing

There are still some final steps to complete. Before everything is confirmed, you need to enter the bank account details for the account you’ll be making your payments from and sign your paperwork.

The good news is that because Avant lets you carry out the entire process online, instead of having to deal with physical papers, you can simply use an e-signature to sign. Nonetheless, if you have any questions, then you can contact the customer service team.

You should receive the funding in one or two days – most borrowers have their funds deposited the next business day. It’s really that easy! When it comes to repaying, your first payment will be taken thirty days after you receive your funds, and you’ll continue to repay on the same day each month. Of course, you can change your due date at any point.

Are Avant Loans Safe?

Avant is partnered with WebBank, which is a state-chartered industrial bank insured by the Federal Deposit Insurance Corporation (FDIC), so you can rest assured your loan has full consumer protection.

Avant also uses 128-bit Secure Socket Layer (SSL) to encrypt and protect personal data and Amazon Web Services to host its servers, which are some of the most trusted available. You can rest assured that your data is in safe hands.

Avant Customer Service

Once you get signed up to Avant, you’ll have access to customer support seven days a week. You can choose to contact them by email or phone, and there are separate departments for loan application support and loan customer service support.

A huge advantage of their customer service is the willingness of support staff to work with you to find flexible solutions for a loan. If you run into difficulties and are concerned about making changes to your loan, the Avant representatives are generally happy to sort it out for you.

Avant is rated as ‘excellent’ on Trustpilot, with more than 9,000 views and an average rating of 4.5 out of 5. Most customers comment they were impressed by the customer service given and the flexibility around how payments are made.

Avant is also accredited with an A+ by the Better Business Bureau (BBB), reflecting that complaints against them tend to be resolved, and the company has a good track record.

Pros and Cons of Avant

As with any loan provider, there are advantages and disadvantages of using the site. Once you know the rates you might be offered by other companies, it’s easier to weigh up how you feel about these pros and cons.

Pros

  • No minimum credit score
  • Flexibility over loan payment dates
  • Good customer service
  • Receive the money quickly.

Cons

  • Origination fee and potentially high administration fees
  • Only offers personal loans
  • Can’t directly pay creditors
  • High rates

Alternatives to Avant

You may have decided the cons outweigh the pros for you, or you want to make sure you have all the information before you reach a final decision. Checking whether any alternatives are better suited to you is always a smart move.

Even though debt consolidation is the main reason people take out a loan with Avant, there may be a better way to do this. You might be able to find a 0% balance transfer credit card if you have a credit score above 650. If not, you could try to look for a counselor from the National Foundation for Credit Counseling (NFCC), as these programs often involve creating a debt management plan with a lower interest rate.

If you want a loan for medical debts, it’s best to check if your medical provider can put you on a 0% interest plan. Finally, local credit unions might offer some options. Admittedly, none of these solutions are quick fixes – if you need to take out a loan and get money fast because of an emergency, taking out a traditional personal loan could be your best option.

SoFi

SoFi Personal loans are geared towards borrowers who have high earning potential, due either to a good level of education or a good career. If you fall into this category but don’t have a perfect credit score, you can probably get a better loan offer form SoFi than from Avant or another loan provider. SoFi also offers support to their customers in other ways, like providing customer support seven days a week and helping clients to find a new job.

Interest rates are significantly lower than those of Avant. APR ranges from 5.99% to 20.91%; the better your credit score is, the lower you can expect. However, bear in mind that you’ll need to enable automatic payments to achieve the very lowest rate.

SoFi also allows you to borrow a greater amount – you can take out a loan of up to $100,000 with them. Even better, there are no fees at all, even for the origination of the loan.

However, their credit requirements are higher than those of Avant – you’ll need a FICO score of at least 660. The median income of their borrowers is $100,000, which is on the high end for Avant borrowers.

OneMain Financial

OneMain accepts borrowers with a low credit score, although this comes at the cost of high rates and fees. Their personal loans come at an APR between 18% and 35.99%, including an origination fee of $30 to $150 or 1% to 5%. This is even higher than the rates of Avant, but you might want to consider them as an option if you’re worried about not getting accepted.

Loan amounts range between $1,500 and $20,000 and come at a term of two to five years. There’s no minimum credit score requirement. You can lower your rate by choosing a secured loan, although this risks your collateral being taken from you.

As a lender with a history spanning more than 100 years, they’re a trustworthy company despite the high rates. There are a few additional advantages to choosing them – you can receive a decision over whether you’ve been approved within a few minutes and receive the funding a day or two later.

Prosper

If your credit score is reasonably good and you’d like to find a loan with a better rate than that of Avant, one of the options you might want to try is Prosper. This peer-to-peer lender has a variety of loan types on offer for people with a credit score of 640 or more.

They offer loans of up to $40,000 for a three- or five-year term, for an APR between 6.95% and 35.99%, which is significantly lower than Avant. There are also fewer fees involved, although there are origination fees (2.4% to 5%) and late fees.

To take out a loan with them, you’ll need a credit score of 640 or more, which is higher than Avant. You’ll also need a debt-to-income ratio of 50% or fewer, as well as standard requirements like having no bankruptcies in the last 12 months and less than seven credit inquiries in the last six months.

Alternatively, if you’re unsure about which provider to choose, you could use a comparison site like Credible, which will give you the rates for multiple lenders after you fill out one application with your personal details. This is a great way of comparing different lenders and figuring out what the market has to offer. Most major lending companies are included on the site.

Although the loan features vary depending on the lender you choose, there are loans available from $1,000 to $10,000 and rates from 4.99% APR, giving a full range of options. An added perk of the site is that they’ll give you $200 if you find a better rate elsewhere.

FAQs

Is Avant good?

Avant is a great option for anyone with an average income and a fair credit score. They might not have the lowest rates on the market, but having no minimum credit requirement is a huge advantage, and they’re completely transparent about their offering.

However, their loans aren’t perfect for everyone. If you have a good credit score, then you could probably find a better rate from a different lender. But whether or not they’re the best lender for your personal needs, they’re a reliable company with a good track record for customer service.

Does Avant affect your credit score?

Avant will improve your credit score. When you make payments, this will be reported to major credit bureaus (TransUnion, Experian, and Equifax). But don’t worry, this is a good thing: it lets the bureaus know you’re able to make your loan obligations. This can help to give your credit score a boost and means you’ll have more options for taking out a loan if you need one again in the future.

Is Avant a payday loan?

Avant offers personal loans, which offer a one-off large sum. In contrast, payday loans are when a loan company allows you to access some of your paycheck early for an extortionate interest rate. Avant doesn’t offer payday loans, and this loan type isn’t recommended as the companies tend to exploit those who are desperate for money.

Does Avant verify income?

Yes. When you’re filling in your application, you’ll normally have to verify your income using Avant’s online verification tool. This also works for people receiving benefits. If you’re self-employed, the process is slightly more complicated, and you’ll need to submit your official tax documentation from the last two years.

Occasionally, further verification is required, in which case one of Avant’s specialists will contact you, or you’ll receive a notification on your application dashboard. Sometimes Avant also needs to call employers to verify information about employment, but they won’t ask about your salary.

Is An Avant Personal Loan For You?

Avant may have higher rates than some of the other loan providers on the market, but that doesn’t mean you should rule them out. Good customer service and flexibility over changing payment amounts and dates are massive plus points, especially if you’re concerned about being able to make your monthly payment schedule.

However, Avant loans aren’t for everyone. If you’re confident of making your payments consistently and have a high credit score, then it would make more sense for you to seek out a loan elsewhere.

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