Avant

Avant Overview

Avant is an online lending platform that offers unsecured personal loans and credit cards to borrowers with fair (580 to 669) and good (670 to 739) credit scores.

Since its inception in 2012, the platform has offered borrowers about two million loans and credit cards.

Avant currently offers loans in 45 U.S. states, and borrowers can borrow from $2,000 to $35,000 with up to 5 years repayment period.

Between 2019 and 2021, Avant had three lawsuits with different allegations, ranging from unfair loan service practices, partnering with out-of-state banks to offer rates above the state-mandated maximum, and using abusive debt collection practices.

Avant Personal Loans Highlights

• Loan Amounts: Borrowers can take out loans from $2000 to $35000 in every state except Massachusetts where the minimum loan amount is $6400.
• Interest Rate: 95% - 35.99%.
• Repayment terms: 12 - 60 months.
• Fees:
  • Origination fee up to 4.75%.
  • Late fee: $25.
  • Returned Check fee: $15.
• Loan types: debt consolidation loans, emergency loans, home improvement loans, and installment loans.
• Credit Check: Soft credit inquiry which won't affect your credit score.
• Minimum Credit Score: 550.
• Minimum Monthly Income: $1200, Avant allows income from alimony, child support, etc.
• Funding time: The loan is funded as soon as the next business day.
• Loan Availability: Avant personal loan is available to people living in most U.S. states, but not all. It's unavailable in Hawaii, Iowa, New York, Maine, Vermont, or West Virginia.
• BBB Rating: A.

Where Avant Personal Loans Stand Out

Lower Credit Score and Income Requirement Than Most Lenders

Borrowers with 550 credit scores may be eligible for Avant personal loans if they meet other requirements. But other lenders may deny people with low credit scores loans without considering other areas.

Similarly, your loan request may be considered if you have at least $1200 monthly income. Avant allows income from alimony, child support, etc.

You Can Get the Funding Within One Business Day

While some lenders take additional or more days to approve the loan and send the fund, Avant approves loans within one business day. After that, you receive the funds in your account the next day.

You Have the Option to Change Your Payment Date

Avant is very flexible with their repayment terms. Borrowers can change their payment date twice during their repayment term.

However, other lenders may offer even greater flexibility by allowing you to change your payment date as frequently as needed, especially when you are experiencing cash flow issues.

You Can Manage Your Loan More Conveniently Through Its Mobile Apps

Avant has a mobile app where borrowers can manage their loans conveniently.

You can use the app to see your payment history, make payments, adjust your payment dates, etc.

The mobile app makes it easier for borrowers to interact with the loan platform.

Pre-qualification is Available

Avant allows borrowers to pre-qualify before officially applying for loans. Pre-qualification helps you to know the loan amount you are eligible for and the potential annual interest rate you are paying.

With this soft credit check, you can tell if the loan payment fits into your monthly budget, otherwise, you can search for a better alternative.

Where Avant Personal Loans Fall Short

Avant Charges an Origination Fee

For borrowers with bad credit, Avant usually charges an origination fee of up to 4.75% before sending you the funds. This will reduce the loan size and increase its costs.

For instance, if you borrow $3500 with an origination fee of 4.75%, the fund you will get is $3,333.75.

But if you are a prime borrower (660-719 credit scores), Avant might waive your origination fee.

Avant Doesn't Offer Co-signed, Joint, or Secured Loan Options

Avant doesn't allow borrowers to have co-signers, joint applicants, or use collaterals for loans.

While some lenders may allow you to add collaterals or a co-borrower to increase your chances of getting the loan, Avant wants you to qualify independently without support from your spouse, parents, or anyone else.

Consider other lenders if you think your credit score or income is insufficient to qualify you.

Avant Doesn't Offer Any Chances of Getting a Discounted APR

Some lenders offer discounted APR (usually a fraction of a percentage point) if you set up an automatic payment. They also offer discounted APR on debt consolidation loans if the fund is sent directly to creditors' accounts.

But Avant doesn't offer borrowers a chance to get a discounted APR. And if you are looking for lenders that offer such features, you need to explore more options.

It Doesn't Pay Creditors Directly For Consolidation Loans

While many lenders may offer to send debt consolidation loan funds directly to your creditors or old lenders, Avant doesn't allow it. You must pay off your debt directly when you receive the funds in your bank account.

Compare Avant With Other Lenders

Avant personal loan is best for borrowers with bad credit who need quick loans to sort out unforeseen expenses.

But Avant charges additional fees like a 4.75% origination fee, late fee, andreturn check fee. And its minimum starting interest rate is 9.95%.

Other options like Personal Loans™ and BadCreditLoans are more suitable for borrowers with bad credit who want a loan with lower total cost or prefer a co-applicant.

4 Avant GET RATE	4.5 Personal Loans™ GET RATE	4.5 BadCreditLoans GET RATE
9.95% - 35.95%	EST. APR 5.99% - 35.99%	5.99% - 35.99%
$2000 - $35000	Loan Amount $1,000 - $35,000	$500 - $10,000
12 - 60 months	Loan Term 3 - 72 months	3 - 72 months
550	Min. Credit Score 600 for peer-to-peer loans; 580 for personal installment loans and bank personal loans.	Not disclosed, but it offers loans to borrowers with bad credit.
A	BBB Rating A-	C-
One business day	Funding time One business day	One business day
Origination fee: Up to 4.75% Late fee: $25 Returned Check fee: $15	Fees Origination fee: 1 - 5% for peer-to-peer loans.	No fee or obligation
$1200, it allows income from alimony, child support, etc.	Minimum Monthly Income $2000 for peer-to-peer loans and personal Instalment loans; $3000 for bank personal loans.	Not disclosed; but it requires borrowers to have a consistent and steady income.

Avant vs. Personal Loans™

Avant's starting APR is almost double Personal Loans™ minimum APR. While both lenders offer loans to people with bad credit, Personal Loans™ loans are less expensive than Avant.

Furthermore, Personal Loans™ offers longer repayment terms (up to 72 months). Some borrowers may find this more convenient because of smaller monthly repayment.

But in the long run, the accumulated interest over time will be more. This will make borrowers pay more interest on the loan than they should.

Avant offers loans to people with really bad credit, Personal Loans™ has a minimum credit requirement of 580. So, customers with poor credit are more likely to secure loans from Avant compared to Personal Loans™

Lastly, Avant has a lower monthly income requirement than Personal Loans™, which means borrowers with low monthly income may prefer it.

Avant vs. BadCreditLoans

Avant minimum APR is about twice what BadCreditLoans offer to its customers. Also, BadCreditLoans don't charge additional fees, making it more suitable for borrowers who want access to loans without additional fees or obligations.

Additionally, Avant's maximum loan amount is $35,000, which triples what BadCreditLoans offers to its customers. So, borrowers who want access to more funds may prefer Avant.

Lastly, Avant is more transparent regarding their loan requirements than BadCreditLoans. For instance, Avant made it clear that their minimum credit score is 550 and minimum income is $1200. But BadCreditloans didn't disclose theirs; they specify that they give loans to people with bad credit and regular monthly income.

Requirements For Avant Personal Loans

Age: You must be above 18 years.

Citizenship: Avant only offers personal loans to US citizens or permanent residents living in the States where they operate.

Identification: Social security number is the only form of identification Avant uses to verify borrowers' identity.

Minimum Credit Score: 550.

Minimum Income: Borrowers need to have a steady income of at least $1200 monthly to be eligible to apply for a loan on Avant.

Minimum Number of Accounts on Credit Report: one.

Maximum Debt-to-Income Ratio: 70%, which includes mortgage payment.

Note: Borrowers in active bankruptcy are not eligible for Avant personal loans.

On the flip side, you can reduce the cost of Avant personal loans by making an early payment. The lender doesn't charge a prepayment penalty, so paying early reduces the overall cost of the loan.

How to Apply For Avant Personal Loan

Step 1: Visit Avant's Website to Pre-qualify

Once on Avant's website, click on loan, and a pre-qualification form will appear.

You will be required to fill in your details, including your address, name, date of birth, average monthly income, email address, mortgage payment, and social security number.

Pre-qualification gives you an estimate of what you can borrow based on the information you provide about your finances and your credit check.

The good news is it's just a soft credit inquiry at this state; it won't hurt your credit score.

Step 2: Review Your Offers

Once you are done with the pre-qualification, Avant will generate loan offers. This may take a few minutes.

During this stage, you will see the loan amount you are approved for. The lender will also notify you how much the origination fees reduce the loan amount.

So, you can either increase the loan or continue with the approved amount.

After that, a breakdown of your loan will come up; this includes the APR and monthly payment, and repayment terms.

Step 3: Preview Loan Offers and Go With the One That Fits Your Budget

Once you decide on the loan offer, submit an application for a personal loan. Avant may require you to provide additional documents like your account statement to confirm your financial status.

Furthermore, the lender will do a hard credit check which may temporarily hurt your credit score.

Step 4: Make a Plan to Repay the Loan

Before you take out an Avant personal loan, ensure you already make repayment plans.

Defaulting your payment will seriously hurt your credit score as Avant report payments to the three major credit bureaus.

So, Being prompt with your payment is a good way to build your credit score. And you can achieve this by setting up an automatic payment.

How CreditYelp rates Avant

Avant FAQs

Q1: Is Avant a Legit Company?

Yes, Avant is a legit online lending platform registered to provide personal loans to the 45 states it services.

The company has been operating since 2012, and the Bureau accredits it. With a secure website, your data is safe with the platform.

But you also should notice that between 2019 and 2021, Avant had three lawsuits with different allegations, ranging from unfair loan service practices, partnering with out-of-state banks to offer rates above the state-mandated maximum, and using abusive debt collection practices.

Q2: Can You Have Two Avant Loans At Once?

No, according to the lender, you can only have one Avant personal loan at a time.

Q3: Does Avant Require Collateral?

No, Avant doesn't require collateral because it offers unsecured loans.