Credit card interest rates can drive up your debt at a breathtaking pace.
Medical emergencies can leave you out of work and dealing with bills that cut into your already-stressed savings.
Personal loans can help provide a break from that stress, allow you to organize your finances, consolidate bills, and break them down into one monthly payment.
Avant offers a way for those who have less-than-perfect credit to get things under firm control and explore what it feels like to breathe a little easier.
Learn about Avant and the features it provides, the pros and cons, and get all of your questions answered about how it works.
Pros and Cons of an Avant Personal Loan
Avant offers loans of up to $45,000 for those with bad to fair credit, with an APR right in line with that of most companies that offer the same service. Here’s a balanced look at Avant.
Who Is Avant For?
Avant is great for those who have trouble with their credit. The company says most customers have a credit score between 600 and 700, based on FICO.
It helps those who need money fast, as you can get funding within a few business days.
What’s more, you’ve got anywhere from two to five years to pay it off. Refinancing is possible as you get back on your financial feet and want to find more advantageous terms.
Top Features of Avant
There are some features of Avant that stand out for those who want to get a personal loan and pay down their ever-growing high-interest debt.
Soft credit pull
Prequalifying for the loan takes only a few minutes, and it results in a soft credit hit. This makes no change at all to your credit score, as it’s considered a “just-looking” kind of inquiry, not an actual loan request.
Excellent funding time
Once the loan is approved, expect to receive the funds within one or two business days, deposited directly to your checking account.
Good customer service
There are numerous channels through which to contact customer service, including phone, chat, and email, as well as through the dedicated app. Customer service is available seven days a week.
Management through the mobile app
Customers can use the mobile app to manage their loans, including seeing their balance, making payments, adjusting their payment due date, and more.
Easy qualification terms
To get a loan, you must have at least $1,200 in income per month (and that can include alimony), a free monthly cash flow of $500, and a debt-to-income ratio of 70% before the loan. You can also have a credit score as low as 550.
How to Apply
You can apply for and manage the loan entirely online.
The application process is straightforward, with questions about your income and debts, as well as a credit check.
For Avant to do a credit check, you must provide a social security number.
Also, you must be a U.S. citizen of at least 18 years of age.
Poor or fair credit loans are possible, as the company looks for a credit score that could be as low as 550 and an income of as low as $1,200. Upon approval for the loan, it typically takes one or two business days for the funds to hit your account.
Rating the Features
When looking into personal loans to pay off debts or fund other necessities, it’s good to know what you’re getting into before signing on the dotted line. Here are some things to consider about Avant.
User experience
Applying for a loan is very easy. Prequalification helps you see exactly what you can borrow and on what terms.
The application process is online and takes only a few minutes to complete the initial steps; it takes a bit longer for your application to go through the credit check and other requirements.
It can take a few days for the money to hit your account; Avant tends to be a bit faster than other companies in that regard.
Fees and rates
Avant offers a 9.95% to 39.95% APR, which is about what’s expected for companies that provide personal loans to those with not-so-good credit.
With Avant, there is a $25 late fee, and an origination fee of 4.95% of the loan.
Additionally, there is no discount for autopay, but there is the option to refinance at a later date for a better rate.
Transparency
Avant reports to all three credit rating bureaus, thus helping you build credit from the very first payment.
The company is very transparent in spelling out every rate and fee during the prequalification process, so there are no nasty surprises.
There is a comprehensive FAQ section that answers the most common questions. Avant also offers customer service for questions that might not show up there.
Flexibility
Borrowers can opt to borrow between $2,000 and $35,000. All loans are unsecured.
Though you can’t choose an initial due date, you can change it to whatever you like twice during the term of the loan.
Some states don’t allow loans from Avant. If you are in Colorado, Hawaii, Iowa, Nevada, New York, Vermont, or West Virginia, you’re out of luck with this company.
Customer support
Avant has a robust mobile app that shows how much is left to pay. It allows you to make payments and change your due date, and it keeps you up-to-date on your credit.
The company offers a blog on financial stress and resolving debt. Meanwhile, the customer service line takes you to real people, not a frustrating automated system.
Frequently Asked Questions
Get answers to some of the most common questions asked by our readers.
What is an unsecured personal loan?
Unlike a home loan or a car loan, where the home or car is used as collateral, a personal loan is unsecured. A home or car lender can seize the home or car if you don’t make payments, but for a personal loan that is unsecured, there is nothing for the lender to take away if payments aren’t made.
What happens if I miss a payment on my personal loan?
If you miss a payment and catch up before the payment becomes 30 days late, nothing will probably happen except that you may pay a late payment, which could be $30 or more.
If you miss more than one payment, the lender will start collection proceedings against you and will start calling you and asking when you’ll be caught up.
If you cease paying altogether, your credit report will reflect this and the lender can sue you for the full amount.
Bottom Line
Avant is one of the best personal loans for consumers with fair or bad credit and provides loans within a matter of days.
You can use a loan from Avant to consolidate credit card debt, pay off bills, make a big dent in that medical debt, and much more.
In the meantime, take advantage of the blog on the website, especially if you’re interested in getting information and inspiration in getting your finances under control.
