Avant is an online financial lender offering personal loans to a range of borrowers. Although they require the payment of origination fees and often charge high interest rates for certain borrowers, the loans they provide are generally dispersed immediately (within one business day) and come with a number of other unique features and flexible benefits.
- Who Are Avant Personal Loans Best For?
- What Can You Use an Avant Personal Loan For?
- Requirements for Obtaining an Avant Personal Loan
Benefits of Avant Personal Loans
- You can apply and manage your account online.
- Payments are fixed.
- You can opt for a secured loan.
- There are a range of loan amounts available.
- The funding is immediate.
- Avant has a useful mobile app.
- You have the option of adjusting the date of payment.
- You’ll have the option to refinance after six months of qualifying payments.
- Disadvantages of Avant Personal Loans
- Bottom Line
By qualifying for an Avant fixed-rate personal loan, those with lower-end credit scores may not get the best interest rates, but they will be able to obtain the funding they need to help pay off ever higher-interest rate credit cards and other debt. At the same time, those with mid-level to high credit scores will get some of the best interest rates available from personal lenders.
Who Are Avant Personal Loans Best For?
If you’re interested in a personal loan, your requirements and desires can vary widely.
Some borrowers are simply looking for funds to make a large purchase. Others need funding to pay off high-interest credit card debt or other loans. Time-wise, you may need the funds quickly, or you may have time to shop and find your best lending options. Credit score-wise, you may be someone with a high score who could procure a loan from a range of lenders, or you may have limited borrowing options because of a lower credit score.
Depending on your needs, an Avant personal loan is good for those who:
- Are interested in obtaining funds quickly
- Have a lower credit score (usually somewhere between 600 and 700)
What Can You Use an Avant Personal Loan For?
Generally speaking, personal loans can be used for a wide variety of purposes, and this goes for Avant personal loans as well.
Avant borrowers may use their funds to:
- Simplify debt. Avant borrowers can obtain funds to pay off numerous smaller debts and consolidate what they owe into one simple monthly payment. Having many credit card payments, for example — often all with different interest rates and due dates — can lead to excessive spending and missed payments and late fees.
- Make home improvements. Renovations, appliance updates, and other home improvements often require significant funds to be paid out all at once. Obtaining a personal loan for such needs is often more advantageous than putting these costs on a credit card.
- Pay for emergencies. When things go wrong, it’s common to need repair or replacement funds fast. Avant personal loans pay out quickly and are often used by borrowers to make vehicle repairs, replace home appliances, or pay for other unforeseen emergencies.
- Make large purchases. Finally, some borrowers are looking for ways to pay for large purchases or upcoming events. Weddings, for example, are a common reason for taking out a personal loan as you can often obtain a lower interest rate than you’d get if you used credit cards.
Requirements for Obtaining an Avant Personal Loan
Avant isn’t totally upfront about the exact stipulations they require to borrow money. To know for sure whether you qualify for an Avant personal loan, you’ll need to fill out a full application and wait for your final decision. Luckily, decisions are made quickly, and you should hear back within 24 hours.
With that said, you can see if you pre-qualify for a loan by entering some simple preliminary information onto the Avant website. Keep in mind that this prequalification verdict will only require a soft credit check, thus not affecting your permanent credit score (submitting a full application will run a hard credit check, however).
A prequalification report can tell you whether you’re likely to be eligible for a loan and if so, how much you might obtain and at what interest rate and payback interval.
Generally speaking, you need to have a credit score of at least 550-580 to qualify for an Avant personal loan. More typically, Avant borrowers’ credit scores lie somewhere between 600 and 700.
Benefits of Avant Personal Loans
Your credit score won’t be affected if you check your prequalification eligibility.
You may have received a letter from Avant telling you that you prequalify for a personal loan. Whether this is the case or not, anyone is eligible to check their potential borrowing eligibility, interest rate offers, and loan amount options on the Avant website.
Doing so will not affect your credit score. If you decide to move forward with the loan, however, keep in mind that a hard credit inquiry will need to be made in order to process your actual application and provide you with a final offer.
You can apply and manage your account online.
Avant is a strictly online company, which means that all transactions, including your loan application and management, can be handled online from the comfort of your own home. Especially if a low credit score or other circumstances have limited your borrowing options, applying online in this way can be much more comfortable as you won’t have to meet with a lender and possibly be denied funds in person.
Payments are fixed.
Avant personal loans are fixed-rate loans, which means that even though the interest rate you receive may be slightly higher than average, the rate will not change over time. Every time you pay your monthly bill, therefore, the payment amount will be the same.
For the most part, borrowers like fixed-rate loans over variable-rate loans because of the consistency of the payment amounts and the lessened risk of a volatile increase in interest rate (as the result of bad economic conditions or other unexpected circumstances, for example).
You can opt for a secured loan.
Secured loans allow you to use a financial asset as collateral to obtain a higher sum of borrowed money and/or a lower interest rate. For example, if you own a vehicle, you can offer it as collateral to create a secured personal loan. This may help those with lower credit scores obtain a lower interest rate or garner a higher loan amount.
Keep in mind that any default on your secured loan will allow Avant to repossess your vehicle or other collateral property. If this would be untenable in your situation, it’s best to opt out of the secured loan option, even if it means a smaller borrowed sum or a higher interest rate.
There are a range of loan amounts available.
Depending on your needs and what you qualify for, you may be able to borrow anywhere from $2000 to $35,000. Generally, in order to borrow a higher sum with an Avant personal loan, your credit score must be at least fair, and you must pay the borrowed sum back in a timely manner (shorter payback window).
The funding is immediate.
Once your application has been accepted, you will receive your funds almost immediately – usually on the next business day.
Avant has a useful mobile app.
When it comes to checking your balance, paying monthly bills, and keeping up with communication, it’s useful to have a mobile app that is readily accessible. Not many lenders have a mobile app, but Avant does, and most users have been happy with its user-friendliness and overall practicality.
You have the option of adjusting the date of payment.
Not all lenders offer this feature. Sometimes, a life-changing event such as a move, a new job, or a change in financial obligations may upset your regular bill-paying schedule. If this is the case, you can simply contact Avant to change the date of payment on your personal loan. According to Avant, you can change your date of payment as many times as is necessary, and there is no limit.
You’ll have the option to refinance after six months of qualifying payments.
Once you’ve been paying your loan back consistently and on time for six months, you’ll be able to request refinancing or a lower interest rate. This is a great option and one you should take advantage of, especially if your credit score improved after taking out the initial loan and paying off some of your other debt.
Disadvantages of Avant Personal Loans
You’ll have to pay a considerable origination fee.
In order to carry out the initial processing of your personal loan, Avant charges what is called an origination fee. This is basically an administrative fee.
The origination fee for Avant personal loans is 4.75% of the total amount you will be borrowing. Many other personal lenders do not require origination fees at all. Still, some lenders do, and a rate of 4.75% is certainly not the highest penalty; some lenders charge up to 10% of the total borrowed sum.
Interest rates can be high, depending on your credit score.
Those with higher credit scores will have lower interest rates. However, if your credit score is quite low, it’s likely you’ll get stuck with a double-digit APR. Interest rates for Avant personal loans range from 9.95% to 35.99%.
It’s possible the best candidates for Avant loans are those with fair credit — not too high and not too low. This is because fair credit borrowers often have trouble finding lenders in the first place, yet Avant caters to this group. Furthermore, if you have fair credit and can nab a decent interest rate from Avant, you’re winning all around.
You cannot use a co-signer or take out a joint loan.
Some borrowers may be interested in getting a cosigner on their loan or taking out a joint loan with a spouse or partner in order to reduce interest rates or borrow a larger sum of money. As is the case with most other personal loan lenders, neither of these options are available with Avant personal loans.
Late fees can add up.
As with credit card companies, if you miss a payment, you will be required to pay a $25 late payment fee. Avant also charges a $15 dishonored payment fee.
Like personal loans from OneMain Financial and similar competitors, Avant personal loans aim to help low-credit borrowers most of all. Whether one of these loans can help you depends largely on your credit score, the amount and type of debt you have, and how you plan to use and repay your loan.
The good news is, with Avant personal loans, you can check your borrowing eligibility without harming your credit. Then, you can make your final decision based on the options presented to you and your current financial situation. All of this can be done conveniently from your own home as Avant is strictly an online lending company. In the end, if you do decide to obtain an Avant personal loan, you can know the funds will be disbursed to you right away — generally within 24 hours.
Ultimately, should you choose to take out an Avant personal loan, the success of the endeavor to help you better manage your finances lies in how smart you are about borrowing and how well you do at making your payments on time every month.