- The Good
- Only average credit score required
- Easy application process
- Good customer service
- The Bad
- Loans generally only for debt consolidation and emergencies
Avant Loans prides itself on being a smarter solution to payday loans or high interest credit cards. It specializes in loans for people who either need to consolidate their debt or are in financial trouble and need a lifeline. This makes it a great alternative to high-interest-rate payday loans.
Other Loan Reviews
- 9.95% to 35.99%
- Origination Fee
- 0.95% to 4.75%
Just like any lender, Avant’s rates fluctuate depending on your credit and other factors that it uses to determine your eligibility for a loan. The APR ranges between 9.95 percent and 35.99 percent. There is also an origination fee, which ranges between 0.95 percent and 4.75 percent. Avant’s late fee is $25, and the check-processing fee is $15.
The maximum loan amount for Avant Loans is $35,000, which is in line with most other online loan providers, while the minimum loan amount is $1,000, which is the lowest minimum among online person loan providers, making it a good option for anyone looking for a quick, low-cost loan.
- Average to excellent credit
- Proof of some income
- Must be at least 18 years old
Avant operates like most other online loan services when it looks for qualifications for approval, including proof of income and legal adult status. Avant, however, does cater to people with lower credit scores, so if you are worried about getting approved for a loan because of your credit score, you should check out Avant. The minimum credit score Avant will accept is around 580. However, there is no minimum when it comes to your income or your debt-to-income ratio.
- Loan Process
- Application > Application Review > Loan Approval
Avant Loans works much the same way a traditional bank loan would. You can go online to fill out an application or call to have someone walk you through it. Once your application is filled out and submitted, Avant will review it and then let you know if you are pre-approved or not. If you are, Avant will get in contact with your bank to get information it needs to complete your loan. Once it has all the information it needs, Avant will contact you with the terms of your loan.
- Partial Loans
Like traditional banks, Avant does not offer partial loans. If you are not approved for your loan amount, you can apply again for a lower loan amount.
Avant Loans: User Reviews
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 Loans likes to jump in. Avant will lend to people who don’t have the best credit 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 take out a loan with Avant to pay the credit cards off, and then they only have to pay down the loan 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. 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 history to be approved.
The loan process for Avant, however, is pretty much the same as other online lenders. You fill out an application, get pre-approved, pick a loan, send some more financial information and sign for your loan. Loan length 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 loans 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 details of each loan in writing to customers before the loan 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 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.