Avant Personal Loans Review
Avant is a personal loan lender providing online loans to qualified borrowers with a range of interest rates and repayment terms, even for those with less than perfect credit. This Avant personal loan review will get you up to speed on this product.
What we like:
No minimum credit score
|Fixed Rates||9.95% – 35.99%|
|Loan Terms||2 – 5 years|
|Loan Amounts||$2,000 – $35,000|
|Fees||Origination fee: 0% – 4.75%|
Prepayment penalty: None
Late fee: $25
Founded in 2012, Avant is a technology-based finance company based out of Chicago serving individual consumers with a variety of lending products. Though the company also offers credit cards, Avant’s main product is personal loans which can be used for any variety of financing needs. Borrowers may utilize a personal loan from Avant for covering unexpected expenses, paying off credit card debt, home improvements, debt consolidation, and more. The process for getting an Avant personal loan is simple, requiring only a few steps—all completed online.
Avant Personal Loans Review
Avant stands out in the personal lending space because of its ease of use and its high approval rates for borrowers. The company has lent to over 600,000 consumers, funding more than $4 billion in loans, with a relatively high customer satisfaction rating. While Avant has clear benefits for some borrowers, it is important to understand how Avant personal loans work, their cost, and how they compare to the best personal loans.
Rates, Fees, & Limits for Avant Personal Loans
Avant offers simple installment loans to its customers with various rates and repayment terms based on their specific needs. The basics of Avant personal loans are below.
- Loan amounts range from $2,000 to $35,000 in most states
- Loan repayment terms range from 24 to 60 months depending on the amount of the loan and state requirements
- Interest rates are fixed and range from 9.95% to 35.99% APR
- No prepayment fees, though there is an administration fee ranging from 0% to 4.75%
Avant loans may be a smart choice for those in need of personal loans for bad credit. Because there is no minimum credit score requirement and a wide range of loan amounts and interest rates, individuals who may not qualify for a traditional personal loan could receive approval from Avant.
Application Process & Eligibility Requirements
One of the biggest draws to Avant personal loans is the ease of the application process. Through Avant, borrowers provide their full name, home address, information about income, and social security number through the company’s online lending platform. The loan application is then run through a proprietary technology system to determine what loan options are available based on the borrower’s information. This information is populated in a matter of moments.
If the borrower likes the terms of the loan, the contract for it can be signed electronically. Funds for an Avant personal loan can be directly deposited into the borrower’s bank account in as little as one business day after approval.
Although the process for applying for a new personal loan with Avant is relatively easy, there are still lending requirements borrowers must meet in order to qualify.
There is no minimum credit score required, but borrowers must have verifiable income, either proven from a paystub or tax returns for self-employed borrowers. Additionally, Avant requires borrowers to be at least 18 years old, a United States citizen or permanent resident, and be able to prove identity through its online verification system. Avant borrowers must also have a valid U.S.-based bank account that will be used for automatic repayment on the loan.
The most notable advantages to using Avant personal loans is the potential for bad credit borrowers to still be approved. Also, the application process is streamlined, and approval may only take a few minutes, with funding following the next business day.
Avant has a transparent platform that makes it easy for borrowers to know what’s available to them including their repayment terms and interest rate options.
Avant comes with some downsides. First, the interest rate charged on Avant loans for borrowers with bad credit is high. These borrowers will pay much more over the life of the loan.
Additionally, Avant charges an administration fee of 4.75% for all new borrowers, which is a significant cost up front. Also, Avant has a less than two-star rating from customers on the Better Business Bureau, although the company is accredited and has an A+ rating from the organization.
How Does Avant Compare?
There are a handful of online loan companies offering similar personal loan solutions to Avant, but they each offer different benefits and value to customers.
OneMain Financial is a well-known personal loan lender that compares to Avant, as it offers easy access to financing for certain borrowers. OneMain Financial has a similar loan amount range as Avant, from $1,500 up to $30,000, but its lowest possible interest rate is much higher than Avant, at 16.05%.
The maximum interest rate charge from OneMain Financial and Avant is the same, making the lenders competitive among borrowers who have less than ideal credit. Avant may offer more value to borrowers because the entire process is managed online; OneMain Financial requires individuals to visit a branch location after completing an application online.
In addition to OneMain Financial, Prosper is a fully digital lender that competes with Avant. Prosper personal loans are also available to individuals with less than ideal credit, but those with strong credit reports may also find a better option with Prosper rather than Avant.
This is because the starting interest rates are lower with Prosper. The online lender, like Avant, does charge an origination fee that is comparable to Avant’s administration fee. Also, Prosper loans have either a three- or five-year loan term, while Avant offers more flexibility in this area.
Avant may be a good choice as an online lender for certain borrowers, including those who want a simple, transparent process, a fast approval, good customer service, and their choice of a repayment term length and monthly payment.
The digital platform Avant uses makes the entire process easy, but borrowers need to be aware of the drawbacks with Avant personal loans. The interest rates can be incredibly high for bad credit borrowers, and the administration fee charged can eat away at the loan proceeds quickly.
For borrowers who do not have good credit, Avant may be the best choice. However, individuals who have a steady income, a solid credit score, and no credit mishaps in the past should look elsewhere for more affordable, lower-interest personal loans.
*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 $188.8.131.52 Avant Personal Loans
Author: Melissa Horton
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