Avant Personal Loans Review
- October 25, 2016
- Posted by: Jeff Gitlen
- Category: Personal Loans
Avant started up in 2012 as a technologically-oriented personal loan platform. Originally known as AvantCredit, it is based out of Illinois in Chicago, and has provided access to personal loans since 2013. It is now among the top tech-powered personal loan companies in the lending industry.
Since its founding year, Avant has provided access to over $4 billion in funded loans and now reaches almost all 50 states in the United States of America. In addition to most of the country, Avant has reached out internationally to the United Kingdom by offering personal loans to their citizens.
About Avant's Personal Loans
Avant offers access to personal loans for a large variety of reasons listed below. It is up to the potential borrower to figure out just what he or she needs a personal loan for.
- Debt Consolidation
- Unexpected Expenses
- Almost Any Consumer Situation
The actual list provided by Avant is not actually that large or diverse-looking, but it can be broadly interpreted to mean many different things. Personal loans through Avant can be taken out for "almost any consumer situation."
Avant offers access to a standard range for a personal loan provider. If approved, borrowers can expect anywhere between $2,000 and $35,000* for a personal loan. As always, the acceptance of each loan depends on the reasoning as well as underwriting criteria of each individual borrower.
The annual percentage rates (APR) that come with a personal loan through Avant are not the best on the market. The lowest possible APR is 9.95%* with the origination fee taken into account, and the highest APR after the origination fee is 35.99%.* As previously stated, these are some of the highest values found with any personal loan provider.
Repayment terms on Avant's personal loans range from 2 - 5 years.** Shorter repayment terms typically have lower interest rates, and vice-versa for longer terms.
Avant is an advocate of the $0 prepayment fee for personal loans. Some companies charge a fee for paying off a loan before its payment period is up, but Avant does not. Avant charges an origination fee of 4.75%. Though this may seem insignificant, if you take out a large loan, it could really add to your total loan cost.
Like many of its competitors, including SoFi and Earnest, a key strength of Avant is its simple and quick application process which is a staple of an online personal loan provider. All customers apply through the online application, and it takes just a few minutes to check your rates. Overall, the process is straightforward, so it's easy to complete.
In conjunction with the quick application process, if approved for a loan, the turnaround for loan disbursement is equally impressive. The requested funds for a personal loan could be deposited as soon as the next business day of the application if approved. This money is deposited electronically, so it is quick, easy, and hassle-free for borrowers.
Avant is one of the few personal loan platforms that offers a mobile app for smart phones. This app lets a borrower check the status of his or her loan on the go. It has several features that can be helpful. Users can set up additional payments through the app. The loan status is consistently updated, and monthly payment due dates and amounts are always available.
There are extensive resources to help potential borrowers get the big picture when it comes to loans. There are two different ways to learn about personal loans through Avant: customer support or the FAQ page. Multiple customer service representatives can be reached throughout daily business hours who are ready to answer common questions seven days a week. On top of this, there is a frequently asked questions page that has plenty of resources for common problems and questions that most people have.
Avant is a reputable and growing online personal loan platform. Its credentials speak for itself; for instance, nearly half a million borrowers have gone through Avant since its founding. Overall, a total of $4 billion in funding has been provided to these customers. With that being said, there are both pros and cons to selecting Avant for a personal loan.
It's hard for any lender to claim they have the best personal loans, but the strength of Avant is its simple application process that can be done online. While this is important, it does not distinguish Avant from the pack; all online personal loan providers have an easy online application. The noteworthy aspect of the platform's disbursement process is the quick turnaround after an application is approved. If a borrower needs money by the next business day, then Avant is the place to go. Only a few companies offer this speed.
There are other distinguishing features about Avant; for instance, the mobile app is a service that is only provided by a few different personal loan providers. This is a helpful resource that only increases convenience for Avant borrowers.
On the other side, there are several aspects of a personal loan through Avant that are not as desirable. The annual percentage rates can be higher than most of the competition which is a definite con about Avant.
At the end of the day, Avant is a solid choice for accessing personal loans. The quick turnaround is often crucial for borrowers in a pinch, so Avant excels in this respect. While there are high interest rates, borrowers can pay off a loan earlier than planned with no fear of a prepayment fee.
*if approved, the actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Avant branded credit products are issued by WebBank, member FDIC
**Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33.