Avant offers personal loans to people with a wide range of credit scores. If you have a good or excellent credit score, you could get Avant’s best rates, although they aren’t quite as good as those other lenders offer. But if you have fair credit, Avant could be a better fit. The platform provides loans to people with credit scores as low as 600, and the interest rate you get will likely be lower than a payday loan. With an Avant personal loan, you can get funds as soon as the next business day, as well as a fixed rate and term.
- Product Specifications
- Pros and Cons
- Company Overview
- APR Range 9.95% to 35.99%
- Recommended Minimum Credit Score 600
- Loan Amounts $2,000 to $35,000
- Loan Terms 24 to 60 months
Available to borrowers with fair credit
Fast funding, often the next business day
Refinancing option available to eligible borrowers
No co-signer option
High APR for those with lower credit scores
- Administration fee: up to 4.75% of the loan amount
- Late payment fee: $15-35
- Returned payment fee: $15
Avant is an online loan platform that offers personal loans for a variety of purposes, from debt consolidation to covering emergency costs to renovating your home. Originally founded in 2012 through the tech startup incubator Y Combinator, Avant focuses on providing personal loans to middle-income borrowers.
Pros of Avant Loans
- Available to borrowers with fair credit scores: Unlike many online lenders, Avant makes its loans available to those with lower credit scores. Most borrowers have credit scores between 600 and 700, according to Avant’s website.
- Fast funding: Most borrowers receive their money by ACH transfer within one business day.
- Refinancing option: Six months after you get your loan with Avant, it’s possible to ask for a lower rate on your loan or refinance the loan. If you choose to refinance, Avant will pay off the old loan and, if any money remains, allow you to cash out the difference. People who see an improvement in their credit score after getting the loan might be able to save money in the long run.
Cons of Avant Loans
- No co-signer option: If you don’t qualify for an Avant personal loan, you won’t be able to use a co-signer to get approved in the end.
- Charges administration fees: You’ll pay an administrative fee (also known as an origination fee) of up to 4.75% of your loan amount. Some lenders don’t charge these fees, so it makes sense to shop around.
- High APR for those with lower credit scores: Even though you can get a loan with a lower credit score, you’ll likely have to pay a higher rate, which could be up to 35.99%. Additionally, the lowest APR is 9.95%, while other lenders offer lower rates for well-qualified borrowers.
Avant Personal Loan Rates & Terms
Avant charges APRs of between 9.95% and 35.99%, based on your credit history. Loans are available for terms between 24 and 60 months. You have different options for your loans, based on your situation, and Avant is fairly transparent when making its loan offers. However, because of the higher interest rates, even for well-qualified borrowers, it can make sense to shop around before choosing to get a personal loan from Avant.
All loans you get through Avant come from WebBank, a member of the FDIC based in Salt LakeCity.
Avant also offers secured personal loans that use your vehicle as collateral and may offer a better interest rate. However, you can only have one type of Avant personal loan at a time.
How Much Can You Borrow With Avant?
Avant requires you to borrow at least $2,000 and sets a loan limit of $35,000. How much you can borrow is based on Avant’s standards, which may include factors like your credit score and income. Also, some states may set the minimum you can borrow at more than $2,000.
You can use the funds for almost anything, including debt consolidation, home improvement, and major life events. Your money will arrive in your account as soon as one business day after your application is approved.
Avant Personal Loan Fees
- Administration fee: Avant charges an administration fee of up to 4.75% of the loan amount. However, Avant may charge you less than that—or even omit the administration fee altogether—depending on your personal financial information.
- Late payment fee: If you pay late, Avant could charge you a fee of up to $35.
- Returned payment fee: Avant charges a dishonored payment fee of up to $15 if your payment is returned.
Some lenders, like Marcus, don’t charge late payment fees or administrative fees. However, you usually need a higher credit score to access those loans. Consider shopping around to find your most cost-efficient loan terms.
How to Get a Personal Loan From Avant
You can click on “Check Your Loan Options” on Avant’s website to review your eligibility and potential interest rates. Reviewing your options will not impact your credit, as Avant uses a soft inquiry to see what you might qualify for. If you’re self-employed, you’ll need to provide tax returns from the past two years.
It’s possible to apply for an Avant personal loan online, providing identifying information like your Social Security number, name, address, and birth date. You can usually get a decision by the end of the day on which you fill out your application, if not sooner. After you verify your information, the funds arrive in as little as one business day.
If your credit score is around 700, you could get Avant’s best rates. Those rates, however, aren’t as good as other personal loan options that might offer lower interest rates and better terms.
However, if your credit score is around 600 and you have trouble qualifying for the best rates elsewhere, Avant could be a good option. Even at a higher APR, getting an Avant personal loan is a good alternative to a payday loan or other fast-cash options.
We look at 40 data points from dozens of financial institutions to evaluate lenders for our personal loan reviews. Because a loan’s APR can dramatically impact the total cost you pay, we weight that feature the heaviest. But since a great APR usually requires at least a good credit score, we also give points to lenders who may have a higher potential APR but offer loans to people with less-than-perfect credit scores.
Along those lines, we favor lenders who allow you to see if you prequalify before applying for a loan, so you won’t harm your credit score just by applying. Origination, prepayment, and late fees all get counted in our assessment. And lastly, we deduct points from the ratings of lenders with restricted access—for instance, those who require you to first have another type of account with them or to join a nonprofit organization.
FDIC. "WebBank (FDIC # 34404)." Accessed March 13, 2021.