ByAvant personal loans provide a convenient solution for individuals looking to achieve their financial goals. Whether you need to cover medical bills, complete a home project, or address an unexpected expense, Avant offers loans ranging from $2,000 to $35,000*. With a minimum credit score requirement of 550, Avant caters to fair- and bad-credit borrowers.
Avant Personal Loans at a Glance
- Minimum Credit Score: 550
- APR: 9.95% – 35.99%
- Fees: Origination fee: 0% to 4.75%, Late fee: Typically $25, Returned check fee: $15
- Loan Amount: $2,000 to $35,000
- Repayment Terms: 1 to 5 years
- Time to Fund after Approval: 1 day
- Loan Availability: Not available in HI, IA, ME, NY, VT, or WV
Benefits of Avant Personal Loans
Fast Funding
One of the standout features of Avant personal loans is their fast funding process. Avant aims to approve borrowers within one business day and can deposit the loan funds into your account the next day. This quick turnaround time allows borrowers to address their financial needs promptly.
Soft Credit Check for Pre-Qualification
Avant offers a pre-qualification process that allows borrowers to check their potential loan options without affecting their credit score. By entering personal information such as income, rent or mortgage payments, and Social Security number, borrowers can receive information on the loan amount, APR, repayment term, and monthly payment they may qualify for. This pre-qualification step helps borrowers understand how the loan fits into their monthly budget.
Option to Change Payment Date
While Avant does not provide the flexibility of choosing the initial payment date, borrowers have the option to change it up to two times during the repayment term. This feature allows borrowers to adjust their payment schedule to align with their financial circumstances.
Mobile App Convenience
Avant offers a mobile app that enables borrowers to manage their personal loan and view their payment history directly from their phones. This user-friendly app makes it convenient for borrowers to stay on top of their loan payments and monitor their progress.
Considerations for Avant Personal Loans
Origination Fee
Avant may charge an origination fee of up to 4.75%, which is deducted from the loan amount before the funds are disbursed. While not all lenders charge an origination fee, it’s essential to consider this fee when comparing loan options.
No Co-Signer, Joint, or Secured Loan Option
Unlike some lenders, Avant does not allow borrowers to add a co-signer or co-borrower to their application, nor can they secure the loan with collateral. This limitation may affect individuals who are seeking additional support or looking to leverage their assets to improve their chances of qualifying for a loan.
Direct Payment to Creditors
If you plan to consolidate debt using an Avant personal loan, it’s important to note that Avant will not pay off your other lenders and credit card issuers directly. Instead, Avant will provide the funds to you, and it becomes your responsibility to distribute the funds accordingly. While this may require additional effort on your part, it allows for greater control over the debt consolidation process.
No Rate Discounts
Avant does not offer any rate discounts, such as those often provided for setting up automatic payments. While some lenders incentivize borrowers with a lower APR for automatic payments, Avant’s rates remain consistent throughout the loan term.
Qualifying for an Avant Personal Loan
Avant makes personal loans accessible to individuals with credit scores as low as 550. However, it’s important to note that the lowest rates are typically reserved for those with stronger credit and income profiles. To qualify for an Avant personal loan, you will need:
- A bank account in your name and in good standing
- A valid Social Security number
- No active bankruptcy
- A minimum credit score of 550 (Avant uses FICO score version 8 and VantageScore version 3)
- A minimum monthly net income of $1,200 (accepted income sources include employment, alimony, retirement, child support, and Social Security payments)
Applying for an Avant Personal Loan
- Pre-Qualify on Avant’s Website: Visit Avant’s website and select “Check Your Loan Options” to access the pre-qualification form. Provide your personal information, including name, address, birthdate, monthly income, rent or mortgage payment, and email address. Avant will also require your Social Security number at this stage, but it will not result in a hard credit pull.
- Review Your Offers: Avant will generate loan offers based on the information provided. You will see the loan amount you’re approved for, the origination fee deduction, and a breakdown of the loan term, APR, and monthly payments. You may have multiple loan offers to choose from.
- Preview and Accept an Offer: Once you select a loan offer that fits your budget, you will submit a formal personal loan application. This step may require additional documents, such as pay stubs and bank statements, to verify the information provided during pre-qualification. Avant will conduct a hard credit check during the application process.
- Create a Repayment Plan: It’s crucial to establish a plan to repay your Avant personal loan. Making on-time payments will help build your credit score, while missed payments can negatively impact it. Consider setting up automatic payments and regularly reviewing your budget to ensure you can comfortably manage the loan payments.
Comparing Avant to Other Lenders
When exploring personal loan options, it’s important to compare lenders to find the best fit for your needs. Here are a couple of alternatives to consider:
Achieve
Achieve personal loans offer larger loan amounts and potentially lower rates compared to Avant. While Achieve charges a similar origination fee, they provide additional options to discount your personal loan rate, such as paying off creditors directly for debt consolidation loans or adding a co-borrower. Achieve specializes in debt consolidation and provides dedicated loan consultants to guide borrowers through the application process.
Upgrade
Upgrade personal loans are suitable for debt consolidation or home improvement projects. Unlike Avant, Upgrade allows borrowers to have other creditors paid directly on debt consolidation loans, potentially resulting in a rate discount. Upgrade also offers secured and joint personal loans, providing additional options for borrowers. While their funding time is slightly longer than Avant’s, Upgrade remains a competitive choice.
Conclusion
Avant personal loans present a viable option for fair- and bad-credit borrowers seeking financial assistance. With a streamlined application process, fast funding, and the ability to pre-qualify without impacting your credit score, Avant aims to make the loan experience accessible and convenient. Consider your specific needs and compare loan options to make an informed decision that aligns with your financial goals.
