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Personal Loans Review

Avant Personal Loans Review

Avant offers low-cost loans to those that other lenders typically do not

By Lindsay VanSomeren

Updated February 03, 2023

The factual information was checked by Ryan Eichler

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Investopedia’s Rating 3.7

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Our Take

Avant’s biggest selling point isn’t affordable rates, particularly in the event that you already have great credit. But if your credit isn’t the best, Avant is one of the few lenders that will work with you without charging an arm and a leg.

The Best Rated For

The best for quick loan approval Best Emergency Loans for Bad Credit

A Runner Up Debt Consolidation Loan for people with poor Credit

Best to Refinance Best Credit Loans for Bad Credit

Best for people with Bad Credit The best IVF loans

Best for Bad Credit The Best Loan Installment

Pros and Cons

Important Takeaways

Company Overview

specifications

Pros

Rapid funding timeframes

Lower credit criteria than many lenders

Less income requirement than many loan providers

Cons

High origination charges

Higher interest rates generally for those with excellent credit

Doesn’t pay creditors directly for consolidation loans

It doesn’t permit co-signers, joint applicants, or collateral

Not available Not available in Hawaii, Iowa, New York, Maine, Vermont or West Virginia

Why Should You Trust Us?

Lenders reviewed

Loan features considered

1,520

Data points that are analyzed

112

Primary sources of data used

Investopedia collected crucial data points from various lenders to identify the most important factors to the borrowers. We used this data to review each lender for fees, accessibility, repayment terms as well as other aspects to give objective, thorough reviews to ensure our readers make the right borrowing decision for their specific needs.

Learn more about our Methodology

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Overall rating 3.7

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Table of Contents

Pros Explained

Cons Explained

The types of loans

The time to receive funds

Requirements for Borrowers

Features of a Loan

Co-Signers

Refinancing

Customer Service

Customer Satisfaction

How do I apply?

Alternatives

Final Verdict

Methodology

Pros Explained

Quick funding timelines There are lenders who offer quicker service than Avant but not as much. If you’re approved for an loan by 4:30 p.m. Central Time, from Monday to Friday Avant will send you the cash via ACH the next day.1

Lower credit requirements than many banks: Avant will approve loans for people with credit scores as low as 550, subject to other criteria. The majority of lenders will deny you outright if your credit score is that low.

Lower income requirements than many lenders: As long as you earn at least $1,200 in monthly income, you may be eligible for an loan. Because that’s about the median weekly take-home pay for Americans which means that a lot of individuals are likely to get approval when other lenders might reject them.2

Cons Explained

The high origination fee: If you have bad credit One of the tradeoffs that you have to make by partnering with Avant is that you pay a higher origination fee than most other lenders charge. On the other hand, if you’re a primary borrower, Avant could eliminate the origination fee completely.

Relatively higher interest rates for those with good credit score: Avant doesn’t apply only to people with lower income and credit. But if you have excellent credit, it will be very easy for you to get a lower-cost loan elsewhere.

Pays creditors in direct installments to consolidate loans In the event that you’re using Avant to get a debt consolidation loan it is necessary to pay off your previous creditors directly. Contrary to this, many other lenders will transfer the loan funds straight to your previous lenders, saving you a bit of time when you pay off your previous loans.

Don’t accept joint applicants, co-signers, or collateral. You’ll have to meet the requirements for the Avant personal loan entirely by yourself, with no assistance from a spouse, parent or anyone else who is in the loan. Avant does not offer secured loans that let you make a pledge of some kind in order to get better odds at approval with low interest.

Not available in Hawaii, Iowa, New York, Maine, Vermont, or West Virginia: Avant is accessible to those who reside in most U.S. states, but not in all of them.

If you’ve got excellent credit You’re likely to obtain better rates elsewhere. Check out our selections of the best personal loans for excellent credit to see what you could be able to.

Types of Personal Loans Offered by Avant

In terms of installment loans are concerned, Avant only offers unsecured personal loans.

You can actually use Avant’s personal loans for almost everything, with the exception of illegal activities or to pay for a college education. Avant advertises some of the most commonly used personal loan applications on its website, but keep in mind these aren’t really distinct loans because they all come with the identical terms and conditions:

Home improvement loans to repair or enhance your living space, inside and out

Consolidation loans to combine several high-interest debts into one loan

Emergency loans to cover unexpected expenses like medical treatments or repairs to your car

The time to receive funds

If you’re approved, Avant will be able to get the funds quickly. Avant can offer next-day ACH deposit if you’re approved before 4:30 p.m. CT, Monday through Friday. Remember that, based on your bank’s policies, the process of making an ACH deposit may take up to a few days before it’s deposited into your account after Avant makes it.1

Borrower Requirements

Avant’s biggest benefit is that it might be more inclined to accept you for a loan in the event that other lenders refuse you right away although it’s not always the cheapest alternative among the mainstream lenders. However, it doesn’t mean that it’s a must for everyone to get a loan.

It’s good to know that Avant does not hide information about the conditions you’ll have to satisfy in order to qualify for a loan unlike other lenders. This is what Avant told us:

Minimum credit score Minimum credit score: 550

Monthly net income minimum 1200 dollars

Maximum debt-to-income ratio: 70%

Avant calculates your debt-to-income ratio slightly differently than other lenders. To calculate yours, add up the total amount of your monthly debt as well as your monthly rent payment, which includes rent. Then, divide that number by your monthly income. (Monthly housing payments aren’t normally included in debt-to-income ratio calculations unless it’s for a mortgage for example.)

Avant Personal Credit Features

Change the due date You’ll have the option to modify your monthly payment time to be more convenient.

Highly rated mobile apps: Avant offers Apple and Google Play apps, both of which are highly evaluated. The app isn’t able to get a personal loan However, when you’ve secured one, you can use it to manage almost all aspects of your repayment.

Light on perks: Lenders catering to a higher-credit-profile crowd generally offer more features, like paying your creditors directly for debt consolidation, unemployment protection, or even the ability to skip a payment every so often. In comparison, Avant doesn’t offer very many extra benefits.

You won’t get a discount on your interest rates by signing to autopay on your Avant loan in contrast to other lenders. Even so, it’s an excellent idea since it prevents late payments and helps you build credit automatically.

Co-Signers and Co-Applicant

Avant does not allow for co-signers or co-applicants for its loans this is a bit odd since it’s intended for people who may have a tough getting financing. However, it does have lower criteria for credit in the initial place, making it easier for more people to get approval.

Can you refinance a personal loan Through Avant?

Yes. If you already have personal loan that you’re unable to repay, whether from another lender or even Avant its own, then you are able to refinance it through Avant. It’s possible Avant will let you refinance to a larger amount too, if you need to take out more cash. It is possible to receive a lower rate at the discretion of Avant dependent on the circumstances.

The business only permits the use of this service twice, however, so make your choice wisely.4

Customer Service

Avant offers decent customer service between the hours of 7:00 a.m. between 7:00 a.m. and 10:00 p.m. CT, Monday through Friday. It is possible to call during the weekend as well, but the hours are shorter, and they end at 8:00 p.m. CT. (If you’re applying for an loan and need assistance, the hours of customer service generally end at 8:00 p.m. CT for you each day, regardless.)

Here’s how to reach Avant to help you for your personal loan:

Email: support@avant.com

Phone: 800-712-5407

Private message: Log in to your account

Mailing address Address for mailing address: 222 LaSalle Street, Suite 1600, Chicago, IL 606015

Customer Satisfaction

Avant has a mixed reputation. On sites such as Trustpilot and the online stores for apps that allow users to install the Avant app the app has a fantastic reputation.6

But, the reviews show a darker picture in other reviews. According to a 2022 J.D. Power survey of lender satisfaction, Avant was ranked far below the average of customers.7 Avant maintains a 1.2-star rating of five from the Better Business Bureau, where Avant has received complaints from 652 customers within the past year.8

Two hundred and twenty-three people have filed complaints against Avant with the Consumer Financial Protection Bureau since 2017, and the company even agreed to an agreement to settle for $1.6 million imposed by the Massachusetts Attorney General. The Attorney General cited unfair debt collection practices.910

The application process for an Avant Personal loan

The individual loan application is pretty like other lenders. It is possible to get pre-qualified to determine if you’re likely to get approved for a loan and, if you are the rate you’ll pay could be. This requires a soft credit check, which doesn’t affect the credit rating of your client, so it’s not a bad idea to get a quote.

The form for pre-qualification is simple to find on the Avant website. You’ll need to fill out some basic details about yourself, such as your monthly housing payment and income as well as your Social Security number, and the contact details. Then, you’ll receive a custom quote.

If you decide to move ahead with your application, Avant will do a hard credit check at this point. This could cause a temporary drop in your score temporarily for few months. It is also necessary to submit certain documents. The specifics might vary depending on the situation, however you can count on having the original copies that lenders usually request:

Recent pay stubs

Bank account statements

Transcripts or tax returns from the past 2 years (for self-employed borrowers)11

Be aware that Avant might need to call your boss to verify your employment, although Avant will not inform them that you’re applying for an loan.

Other Personal Loan Lenders

Avant LendingPoint Upstart

APR Variation9.95%-35.99 Percentage7.99%-35.99 percent6.5%-35.99 APR Range 9.95%-35.99%

The loan amount is $2,000 to $35,000.$12,000-$36,500 $2,000-$50,000$1,000-$50,000

Loan Terms12-60 months 24-72 months30 or 60 month

Minimum Credit Score Recommended550 Not disclosedNo credit history is required

Origination Fee 0%-4.75 percent0%-8% 0%-10%

The time to receive the loan1 business day12 One business day 13. Business day 1 14

Final Verdict

If you have a good credit score as well as a steady income, then we advise that you keep looking for a different lender when you’re looking to take out a loan. Some of the best personal loan lenders have way higher rates, features and reviews from customers than Avant.

However, if you don’t have a good credit score and a high income, and your only option is to take on higher interest debt , such as the payday loan, we’d definitely suggest Avant. Although it’s not perfect, it’s not as bad like other lenders who take advantage of those with less alternatives. And since paying off an Avant personal loan helps you build credit if you make your payments on time (unlike the case with a payday loan), it can be a good stepping stone to a better credit score.

Methodology

Investopedia is committed to providing its users with objective complete review of the best personal loan lenders. To evaluate lenders we have gathered many data elements for more than 40 lenders. This includes fees, interest rates, loan amounts, and repayment terms, to ensure that our reviews help consumers make educated choices for their borrowing requirements.

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