Avant review: Personal loans for people with low credit scores, but you'll pay a high interest rate
Avantoffers personal loansfor emergency expenses, car repairs, vacations, and more.
- Avant loan amounts range from $2,000 to $35,000, but exact limits vary by state.
- You have a good chance of qualifying for an Avant
personal loanwith a credit score of 600.
- See Insider's picks for the best personal loans »
Should you use Avant?
|You may like Avant if you ...||You may not like Avant if you ...|
|Have a credit score as low as 600 Want to avoid prepayment penalties Want a company with long customer service hours Need your funds within one business day Want to manage your loan from a mobile app||Need to borrow more than $35,000 Don't have an account with a bank or credit union|
How Avant worksAvant provides personal
Avant loan amounts range from $2,000 to $35,000. The minimum amount you're required to borrow varies by state. Avant offers loans to all 50 states and Washington, DC.The minimum loan term is 24 months, and the maximum term is 60 months. You can pay off Avant loans in full at any time without incurring an early payment penalty.
Depending on your credit score and annual income, your APR will range from 9.95% to 35.99%, which is higher than some other major competitors' APR ranges. For example,
You can reach Avant via their customer service email address, firstname.lastname@example.org. Or call 800-712-5407 Monday through Friday, 7:00 a.m. to 10:00 p.m. CT, or weekends from 7:00 a.m. to 8:00 p.m. CT.
Avant also has a mobile app with a smooth, well-designed interface. The app has 4.5 out of 5 stars in the Apple store, and 3.8 out of 5 stars in the Google Play store.Avant has a Support Center with answers to questions, sorted by topic.
You can get a variety of personal loans from Avant, including:
- Debt consolidation
- Emergency expenses
- Life events
- Car repair
- Home improvements
- Moving expenses
- Other (this is not clearly defined on Avant's website)
You'll need to meet the following requirements to apply:
- You must be over the age of 18 (19 if you live in Alabama)
- You must have a personal bank or credit union account (prepaid card accounts aren't eligible)
- You must be able to provide documents to verify your income, identity, and other information as requested
What credit score do you need to qualify for an Avant loan?To qualify for a personal loan, Avant states on its website that most customers have a credit score between 600 and 700. However, your credit score isn't the entire factor in your loan approval, so you may still consider applying with a lower score. Here's how scores break down, according to FICO:
- Very poor: 300 to 579
- Fair: 580 to 669
- Good: 670 to 739
- Very good: 740 to 799
- Exceptional: 800 to 850
Avant will perform a hard credit inquiry once you continue with the loan application, which will likely affect your credit score. A hard inquiry gives a lender a comprehensive view of your credit history, but may negatively affect your score.Avant may be a good choice for you if you have a lower credit score, because Avant has more lenient credit score requirements than other personal loan companies. Keep in mind that the lower your credit score, the higher your APR could be - and Avant rates go up to 35.99%.
Here are some tips you may consider to improve your credit score before applying for a loan:
- Ask for and examine a copy of your credit report. Look for any mistakes on your report that could be tanking your score. If so, reach out to the credit bureau to talk about fixing the error.
- Keep credit card balances low. Sustaining a credit utilization rate - the percentage of your total credit you're using - of 30% or less will prove to lenders that you can handle your credit well.
- Design a system for paying bills in a timely fashion. Your payment history makes up a significant percentage of your credit score, and lenders prefer to see stable payments in the past. Set up calendar reminders or automatic payments so you don't find yourself playing catch up.
Is Avant trustworthy?Avant is a Better Business Bureau-accredited company, and the BBB gives Avant an A in trustworthiness. The BBB assesses trustworthiness by evaluating a business' responses to consumer complaints, truthfulness in advertising, and transparency about business practices. However, good BBB scores don't guarantee you will have a good relationship with companies. They're merely a guideline to help you get started on your hunt for a personal loan provider.
Avant does have a recent controversy. In 2019, the company settled a case with the Federal Trade Commission where it was found liable for putting unauthorized charges on customers' credit card, and for illegally requiring customers to agree to automatic payments from their bank accounts when taking out a loan.
Due to Avant's recent history, you may decide you're more comfortable using a different personal loan company.
The pros and cons of Avant personal loans
- Quick access to funds. If your loan is approved by 4:30 p.m. CT Monday through Friday, funds are generally deposited by the next business day. The exact time will depend on your bank and its processing time.
- No prepayment penalty. You can make additional payments toward your loan, and you won't be charged an extra fee.
- Mobile app. Avant has a strong mobile app. Not all personal loan companies come with apps.
- Multiple types of fees. You'll have to pay an administration fee of up to 4.75%, which will be deducted from your loan proceeds when the loan is funded. If you miss a scheduled payment, you may incur a late fee, which will vary by state. If a scheduled payment is returned unpaid, dishonored payment fees may apply.
- High maximum APR. Compared to competitors like Best Egg, Marcus, and Lightstream, Avant's maximum APR of 35.99% is high. Best Egg's max is 29.99% APR, and Marcus' and Lightstream's are 19.99% APR.
How to get an Avant personal loanThe application is available online and can be completed in a few minutes. You'll need basic information for the initial application, including:
- Contact information including your address, phone number, and email
- Whether you rent or own your home
- How much you pay for housing each month
- Date of birth
- Social security number
- Employment status
- Individual income (monthly net income)
- Reason for applying for a personal loan and how much you want to take out
- Other financial information, such as how you would rate your credit quality
You'll be able to see your offers and interest rate range within a few minutes. You'll need to undergo identity verification to complete the application process, and you may need to provide confirmation of certain financial details before your application is approved.
After you've verified your information, the funds will be delivered to your bank account as requested, usually by the next business day.
How does Avant compare to other personal loan lenders?Although rates are specific to borrowers, Avant interest rates are higher than those offered by other big-name lenders. Here's how Avant compares to the competition.
|Min. credit score600||Min. credit scoreUnspecified||Min. credit score640|
|APR9.95% to 35.99%||APR6.99% to 19.99%||APR5.99% to 29.99%|
|Origination fee?No*||Origination fee?No||Origination fee?Yes|
|Avant Personal Loans||Apply for a loan||Best Egg|
Avant review vs. Marcus by Goldman Sachs review
Avant charges an administration fee of up to 4.75%, which will be subtracted from your loan proceeds when it's funded. You'll also pay a fee if you miss a scheduled payment or if a scheduled payment is returned unpaid.You won't pay any fees with Marcus, including late fees. Rather, you'll rack up more interest if you don't pay on time, and your final payment will be bigger.
With Marcus, you'll receive a 0.25% discount on your loan by signing up for AutoPay; Avant does not offer this perk.While Marcus has no official minimum credit score requirement, the company recommends a minimum credit score of 660 in an informational post on its website. This suggestion is higher than Avant's loose guidelines by a significant margin. If your credit score is below 660, Avant is likely the better option. That said, the lower your credit score, the higher an APR you will probably pay.
Avant vs. Best Egg personal loansYou'll pay a late fee with both loan providers - Avant's late fee depends on which state you live in, while Best Egg's late fee is $15. Both have additional fees baked into the cost of the loan. Avant charges an administration fee of up to 4.75% of your loan amount, while Best Egg's has an origination fee ranging from 0.99% to 5.99%.
Avant also has a lower minimum credit score guideline than Best Egg - though both companies have relatively low minimums. As a result, Avant might be the better choice if your credit is toward the lower side of "fair."
You'll receive your funds roughly in the same amount of time with both companies. Avant claims most customers will receive their funds the next business day, and Best Egg says the majority of customers will get their money within one to three business days.Ryan Wangman is a reviews fellow at Personal Finance Insider reporting on mortgages, refinancing, bank accounts, and bank reviews. In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership.
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