Avant Personal Loans Review

Where Avant Personal Loans Stand Out

Fast Financing: Avant says it can approve borrowers within one business day and have a personal loan deposited into your account the next day. Express financing is somewhat standard for online personal loans, but some lenders may take an extra day to approve applications or send funds.

Mild prequalification credit check: If you pass prequalification, you can view the potential loan amount and APR of your Avant loan. Prequalification does not affect your credit score and can help you understand how loan payments fit into your monthly budget. If you go ahead with your loan application, the lender will apply a hard loan deduction, which may temporarily subtract a few points from your score.

Ability to change payment date: Avant customers cannot initially choose a payment date, but can change it up to two times during the refund period. For other lenders, you can choose the initial payment date or change it more frequently due to unexpected changes in cash flow, such as B. A new job with a different payday.

Mobile App: Avant has a mobile app that allows borrowers to make payments, customize payment details and view their payment history. Many other lenders have mobile apps, but some online lenders still don’t.

Where Avant personal loans fall short

Setup Fees: Avant may charge up to 4.75% setup fees. Lenders will often deduct this fee from the loan amount before passing the money to you, reducing the size of the loan. Not all lenders charge referral fees, but you can find higher fees from other lenders with bad credit.

No Discounts: Avant does not offer a way to earn discounted APRs. Many lenders offer interest rebates—often a fraction of a percent—for setting up automatic payments. Some include discounts on features that Avant doesn’t offer, such as B. direct transfer of funds to debt consolidation loan creditors or the addition of co-borrowers.

No co-signer, joint or secured loan options: Avant does not allow borrowers to add a co-signer or co-borrower to their application or to secure a loan with collateral. Some lenders allow applicants to add collateral or co-borrowers to improve their chances of qualifying.

Complaint with Avant

Avant agreed to pay $1.6 million in 2021 to settle allegations it engaged in abusive debt collection practices. The Massachusetts Attorney General’s Office said Avant failed to provide proper debt confirmation notices and made illegal and numerous debt collection calls to consumers.

In 2020, Avant settled with the Colorado attorney general’s office after the state claimed the company had partnered with out-of-state banks to offer higher rates than the state mandated.

Avant agreed to pay $3.85 million in 2019 to resolve FTC allegations that it engaged in unfair credit management practices, including unauthorized debits from consumer accounts and illegally requiring consumers to sign up for Autopay. The FTC begins returning funds to more than 17,000 consumers in 2022.

How to Qualify for an Avant Personal Loan

Many lenders have basic requirements to apply, and some have financial requirements or advice to qualify.

To apply for a personal loan from Avant, you must have a valid Social Security number and bank account.

Below are the minimum requirements for Avant to qualify for a loan. (Meeting these requirements does not guarantee approval.)

• Minimum credit score: 550. Avant uses FICO Score Version 8 and VantageScore Version 3.
• Minimum number of accounts on credit report: 1.
• Minimum monthly income: $1,200. This lender provides income for alimony, child support, and other alimony.
• Maximum debt-to-income ratio: 70%, including mortgage payments.
• Cannot be in active bankruptcy.

Here are the details on Avant’s average borrower, according to the lender.

• Average credit score: 644.
• Average monthly income: $4,000.
• Average debt-to-income ratio: 30% before personal loans.

Before you apply

Check your credit. You can get a credit report at AnnualCreditReport.com. This allows you to identify and correct errors before you apply.

Calculate your monthly payment. Use the Personal Loan Calculator to determine how much APR and repayment period you need to get an affordable monthly loan.

Make a plan to pay off your loan. Check your budget to see how your loan’s monthly payments will affect your cash flow. If you need to cut other fees to pay off your loan, it’s a good idea to find out before taking out a loan.

Gather your documents. Avant may ask for proof of income, possibly a pay stub or bank statement, as well as proof of address and a Social Security number. Having these documents on hand can speed up the application process.

How to Apply for an Avant Personal Loan

Below are the steps to apply for an Avant loan based on our experience going through the prequalification process.

1. Prequalify on the Avant website. Select “Loans” on the Avant website to enter the prequalification form. Here you can enter personal information, including your name, address, date of birth, monthly income, rent or mortgage payments, and email address. You also entered your Social Security number, but there are no hard credit deductions at this stage.
2. Check your offer. It may take a few minutes for Avant to generate the credit offer. Qualified applicants will see their approved loan amount. Avant also shows applicants how much their fees have reduced loan proceeds, so borrowers can decide to increase their loan amount. Finally, you’ll see a breakdown of the loan term, APR, and monthly payments. You can choose from a variety of loan offers.
3. Review loan quotes and accept the one that fits your budget. Once you have decided on a loan offer, submit a formal personal loan application. This may require other documents, such as pay stubs and bank statements, to confirm the information you provided during prequalification. Avant also conducts a rigorous credit check on your application, so your credit score may be temporarily lowered.
4. Make a plan to pay off your loan. Avant reports payments to all three major credit bureaus, so paying on time helps build your credit, but missing payments hurts. Setting up automatic payments and tracking your budget are two ways to manage loan payments.

How We Rate Avant Personal Loans

We rate lenders using criteria that change each year as personal loan products evolve. Here are our priorities for this year: