Review
Updated
Fact Checked
Nathan Alderman
It's a hard fact of life that people with high credit scores have an easier time borrowing money. For those whose credit scores aren't great, Avant offers an option. Avant's flexible repayment terms and quick funding make it a strong choice for many borrowers, particularly those looking for debt consolidation loans for bad credit. Find out if it's right for you in our Avant personal loans review.
Avant
Rating image, 4.5 out of 5 stars.
4.5/5
Minimum Credit Score
580
Loan Amounts
$2,000 - $35,000
APR Range
9.95% - 35.99%
Term Length
12-60 months
Avant has flexible credit requirements, and the minimum loan amount is just $2,000 (lower than many other lenders). The good news is that you can apply with a credit score as low as 580. The bad news is, Avant's upper-end APR is quite high.
- Lower credit score requirements
- Relatively low minimum loan amounts
- Fast funding
- No prepayment penalties
- Higher APRs
- Administration fee of up to 4.75%
Full Avant personal loans review
This personal loan is a good fit for: Those with low credit scores looking for quick funding and flexible personal loan terms.
Top perks
Soft credit inquiry: There's no need to commit to Avant to find out your options. Avant will conduct a soft credit inquiry and let you know what your interest rate will be. Unlike a hard credit inquiry, a soft credit inquiry won't negatively impact your credit score. It's not until you commit to an Avant loan that the company runs a hard credit check.
Available loan amounts: Many lenders have higher minimum lending limits, which makes Avant's $2,000-$35,000 especially attractive. If you only need enough money to make a small home or auto repair, there's no reason to borrow more.
No prepayment penalty: Let's say you earn a bonus at work or otherwise come into extra cash. Avant doesn't charge a prepayment penalty, which makes it easier for you to pay your loan off early.
Easy to qualify: Borrowers with credit scores as low as 580 can get approved for a personal loan, provided they meet the income requirements.
Funding time: Most loans are funded by the next day. That means you won't have to wait long if you have an emergency situation that requires quick cash.
Loan terms: Loans terms are available from 24 to 60 months. That gives you flexibility. If you choose a longer repayment term, you'll have a lower monthly payment but you'll pay more in interest over the life of the loan. If you're looking for the best loans to consolidate credit card debt, being able to extend payments out for as long as 60 months may be an attractive feature.
What could be improved
APR range: Avant's APRs can be high, depending on your situation. If your credit is not so hot, the high APR and fees can make it an expensive way to borrow money.
Origination fees: Avant charges what it calls an "administration fee" of up to 4.75% of the loan amount. How much you'll pay is based on your credit rating. The highest origination fees are charged to those with the lowest credit scores.
How to qualify for an Avant personal loan
You'll generally need the following to qualify for an Avant personal loan:
- A minimum FICO® Score of 580 or higher
- Enough income to be able to afford the monthly loan payment
- An acceptable debt-to-income ratio (40% or lower)
Application process
Applying for an Avant personal loan is quick and easy.
- Provide some basic financial information. Avant will run a soft credit check to see if you prequalify. This will not impact your credit score. If the information is acceptable, it will offer you a loan rate, loan amount, and loan term options.
- If you decide to proceed with the loan, you'll need to provide more detailed information. Avant will then run a hard credit check which will slightly impact your credit score. At this point, Avant may ask for additional documents for verification purposes.
- If your loan is approved, you'll need to let the lender know where you want the funds deposited and electronically sign a loan agreement.
Alternatives to consider
Regardless of your credit score, take the opportunity to check loan offers from several lending partners. Here are some other loans worth your consideration:
- SoFi Personal Loans also offers lower-interest loans for highly-qualified borrowers with long potential loan terms. In addition, SoFi offers unemployment protection.
- Happy Money offers lower interest rates -- and does not charge origination fees -- to those with the best credit ratings.
Did you know? Avant also offers a credit card. Check out The Ascent's Avant credit card review to learn more about their offerings.
As of Sep. 19, 2023
Lender
Rating
Min. Credit Score
Loan Amounts
APR Range
Next Steps
Avant
Rating image, 4.5 out of 5 stars.
4.5/5
580
$2,000 - $35,000
9.95% - 35.99%
SoFi Personal Loans
Rating image, 5.0 out of 5 stars.
5.0/5
680
$5,000 - $100,000
Fixed: 8.99%-25.81% APR (with all discounts)
Happy Money
Rating image, 4.5 out of 5 stars.
4.5/5
640
$5,000 - $40,000
11.52% - 24.81%
Disclaimers
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 25.81% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 05/19/23 and are subject to change without notice. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.
Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-6%, which will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
The following payment example depicts the APR, monthly payment and total payments made during the life of a personal loan with a single disbursement. All loan rates below are shown with the autopay discount (0.25%) and direct deposit discount (0.25%). The monthly payment for a $30,000 loan with a 60-month term and a fixed annual percentage rate (APR) between 12.95% – 25.03% would be $681.82 – $881.07 in monthly payments, with total payments between $40,909.47 – $52,864.05. Your actual interest rate may be different than the loan interest rates in these examples and will be based on term of loan, your financial history, and other factors, including your cosigner’s (if any) financial history. Lowest rates reserved for the most creditworthy borrowers. See SoFi.com/eligibilityfor details.
Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
This personal loan is right for you if:
- Your credit score is not great and you want an unsecured loan for $35,000 or less.
- You're looking for a longer-than-average repayment period.
FAQs
-
While some lenders only consider applications from borrowers with high credit scores, Avant takes a greater risk by offering loans to people with scores as low as 580. In return for taking this risk, the company charges more in interest.
-
While you don't necessarily have to work outside the home, you do need to provide the lender with proof that you have enough monthly income to cover the payment.
Our Loans Experts
Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.
Fact Checked
Nathan Alderman
Nathan Alderman has worked with The Motley Fool since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As The Ascent's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.
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