Avant Personal Loans Review
Christy Bieber is a personal finance and legal writer with more than a decade of experience. Her work has been featured on major outlets including MSN Money, CNBC, and USA Today.
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Avant personal loans can provide you with quick funding and you'll benefit from an easy approval process, even if your credit isn't great. The lender's lenient qualifying requirements, plus the flexibility you have in choosing your repayment term make Avant personal loans a good choice for many borrowers.
But, APRs can be high on Avant personal loans so those with strong credit scores may wish to consider other alternatives before deciding that an Avant loan is the best option. Those looking to borrow a large sum will also need to look elsewhere.
This Avant personal loans review will help you decide whether this lender may be right for you or whether you should apply with a different lender to secure the personal loan funding you need.
What you need to know about Avant personal loans
If you're considering Avant personal loans, here are the key features to know about them:
- You can borrow between $2,000 and $35,000.
- APRs on Avant personal loans range from 9.95% to 35.99%. Your APR will be determined by your credit score, amount borrowed, and other financial factors.
- Avant charges an administration fee up to 4.75%.
- Loan lengths range between 24 months and 60 months so you have flexibility in repayment term.
- Most loans are funded by the next business day.
- You can find out your loan options without affecting your credit score and can apply directly online.
Loans are unsecured and you can borrow for any purpose you'd like, including debt consolidation, home improvement, and covering emergency costs.
Applying for Avant personal loans
Applying for Avant personal loans is easy. You'll start by providing some basic financial information to check your loan rates and find out what the repayment terms would look like. When you check your loan options, no hard inquiry will be placed on your credit report so your credit score will not be affected by applying.
After submitting your information, you'll be given options for loans you could take out. Options may include loans with different repayment timelines and differing interest rates. After selecting the loan that's right for you, you'll sign your contract online.
The final step is the funding of your loan. After you've signed your loan contract, money from the loan can be deposited into your bank account as early as the next business day. You can use the proceeds of the loan for any reason, including consolidating and refinancing other debts by paying off current loans you owe.
What I like about Avant personal loans
The best feature of Avant's personal loans is the lender's easy qualifying requirements. Borrowers with credit scores as low as 580 can get approved for a personal loan, provided they meet income requirements.
The speedy funding is another major benefit. Competitors such as LendingClub indicate it typically takes around seven days to obtain funds from the time that you apply for the loan. In situations where you need to get access to cash quickly, such as when you have emergency home or car repairs, waiting a week may not be an option. With Avant, most borrowers are able to receive their funds by the day after applying so the money is available to tackle pressing financial matters.
Avant also won't charge a prepayment penalty, which means you won't have to pay a fee just because you want to become debt free faster. While most online lenders don't charge these fees, some do. And, Avant loans are unsecured, which means you do not have to pledge any collateral so you aren't putting your assets at risk to obtain funding.
Finally, flexibility in repayment terms is another great feature. You can choose a period from two to five years for loan repayment, giving you the ability to opt for lower monthly payments while paying more interest over time or a higher monthly payment but a reduced overall loan cost since you won't be paying interest as long. Some other personal loan lenders don't offer as much flexibility.
What I don't like about Avant personal loans
The big downside of Avant personal loans is the high APRs, which start at 9.95% and go all the way up to 35.99%. This is higher than many competitors, including LightStream which offers personal loans at APRs from 3.34% to 16.99%.
Of course, higher APRs usually go hand-in-hand with easy qualifying. LightStream loans are available only to people with strong credit while Avant personal loans cater to people with imperfect scores. Having this access to loans even with a lower credit score is a good thing, even if that means paying more.
Avant's high administrative fee, which could go up to 4.75%, also makes the up-front cost much more expensive. Many competitors, such as Marcus by Goldman Sachs, charge no origination fee. And others that do charge fees sometimes charge less. Prosper's origination fees start at just 2.4% of loan amount, although they could go up as high as 5% depending upon the Prosper rating you're assigned.
Finally, Avant has a relatively low maximum loan amount at $35,000. Prosper and LendingClub each allow loans valued at up to $40,000 while LightStream allows borrowers to borrow up to $100,000. If you need a larger loan, Avant isn't going to work for you.
Are Avant personal loans right for you?
If your credit isn't great and you're looking to borrow $35,000 or less, a personal loan from Avant is worth considering. That's especially true if you want an unsecured loan with a flexible repayment timeline so you're able to choose how you want to pay your loan back.
But, you should make certain that you compare the rates being charged by Avant with other personal loan lenders to get a loan with the lowest costs. Don't forget to factor in the origination fee as well as the interest rate when looking at total costs of your loan.