Avant Loans Review

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Everyone tells you that you should have a rainy day fund in case of emergencies, right? Well, having one is easier said than done, especially if you are living paycheck to paycheck. Sometimes, we all need that emergency cash to deal with … well … emergencies. Many people who don’t have good credit turn to high-interest credit cards or payday loans when they find themselves in this situation.

This is where Avant likes to jump in. Avant will lend to people who don’t have the best credit report history without charging them the crazy high interest rates that payday loans charge. This not only keeps people from going into massive debt, but it allows them to borrow more money if they need to.

Almost half the people who use Avant take out a loan for debt settlement purposes. So if they are drowning in credit card debt and have high interest rates on the credit cards, they can use Avant to pay the credit cards off, and then they only have to pay down the debt with the lower interest rate.

How Does Avant Work?

Now, while Avant doesn’t charge the crazy interest rates of payday loans, its rates are still higher than normal online lenders’ products and services. Lenders who take on borrowers with poor credit generally charge higher interest rates, not to take advantage (well, most of them don’t try to take advantage), but because more often than not, the lenders aren’t paid back or have to take a settlement to get only a part of the money back it lent out. The higher interest rates are basically to offset the risk.

That said, you only need a 580 credit score to be approved, and there are no minimum requirements for your income or your debt-to-income ratio. You also don’t need much of a credit report history to be approved.

The process for Avant, however, is pretty much the same as other online lenders. You fill out an application, get pre-approved, pick the lending you want, send some more financial information and sign for your loan terms. The time you have to make monthly payments can go anywhere from two years to five years for repayment.

Is Avant Legit?

Avant is a legitimate lender, founded in 2012, which has raised more than $650 million in capital in the nearly five years it has been operating. Avant funds its loans through WebBank, which is a member of FDIC, which is always good peace of mind.

Avant has given $3.5 billion in lending to more than 500,000 customers in the past 5 years. It is up front about its rates and fees, and it provides all the loan terms in writing to customers before it is signed.

Avant also gets an A+ from the Better Business Bureau.

Common Avant Reviews

Overall, Avant seems to get good ratings from professional review sites for its products and services. The Better Business Bureau rates Avant at 4 out of 5 stars, as does consumer finance sites like NerdWallet, and on sites that include consumer reviews, like Credit Karma.

Avant has a total of 2,500 reviews on the business review site TrustPilot, and those reviewers’ scores average a 4 out of 5 as well. Some of the reviews on TrustPilot, which vets its reviewers, include, “I believe Avant is perfect for those who wish to improve their credit rating,” and, “The quickest response and easiest site to navigate. It was a blessing to help me at a time when other lenders did not.”

Of course, Avant doesn’t have a perfect record, and there are a number of legitimate negative reviews and complaints against the site from people who either didn’t like the service, thought the interest rates were too high or had an issue with timing. These are all legitimate concerns, but the majority of people reviewing Avant seem to have a favorable view of it.

Is Avant Right For You?

Avant is not for everyone. Even if you have excellent credit, Avant’s interest rates might just be too high compared to other lenders. Here are the questions you need to ask before you apply for an Avant loan:

  • Do I have high-interest credit card debt?
  • Do I have a financial emergency I need to pay for?
  • Is my credit not the best?

Really, it’s the last question that’s the most important. If you have poor or even average credit, and you can’t get a loan with any other lender, Avant is a good next step. Its interest rates are higher, but not as high as other finance options like payday loans. If you are in a financial emergency, Avant is a much better option.

Even if you don’t need money right away and just want to pay off your high-interest credit card debt, Avant is a great option. If you have a lot of credit card debt, chances are your credit score is not ideal. This gives you an option to consolidate your credit card debt at, hopefully, a lower interest rate, making it easier to pay off.

About the Author

Jeff Hindenach

Jeff Hindenach is the co-founder of Versus Reviews. He graduated from Bowling Green State University with a Bachelor's Degree in Journalism. He has a long history of journalism, with a background writing for newspapers such as the San Jose Mercury News and San Francisco Examiner, as well as writing for The Huffington Post, New York Times, Business Insider, CNBC, Newsday and The Street. He believes in giving readers the tools they need to get out of debt.