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If you have fair credit, Avant personal loans can offer the chance to get relatively affordable financing. The online lender's loan amounts and repayment terms are flexible, but its interest rates might not be low enough for borrowers with good or excellent credit.
Whether you're considering a personal loan for debt consolidation, emergency expenses or something else, here's what to know before you apply for a loan with Avant.
|Competitive rates for fair-credit borrowers||No cosigners or joint loans allowed|
|Flexible loan amounts and repayment options||Starting APR is high for prime borrowers|
|Fast funding times||Charges an upfront administrative fee|
Avant is an online lender that offers personal loans from $2,000 to $35,000. It offers flexible repayment terms of up to 60 months, but there's an upfront administrative fee of up to 4.75% of the loan amount.
Avant personal loans can be an excellent option if you have fair credit because of their credit score requirements. However, if you have good or excellent credit, you may be able to find a lower interest rate and no upfront fees with a different lender.
Here's what you should know about Avant personal loans before you apply.
Competitive Interest Rates for Low Credit Scores
For borrowers with higher credit scores, Avant's starting interest rate is a bit high. But consumers with fair credit can get approved with relatively generous interest rates, especially compared to other short-term borrowing options such as payday loans and title loans.
Additionally, you'll get an interest rate that will remain fixed for the life of the loan. Some lenders also offer variable-rate loans, which have interest rates that can fluctuate over time. While variable interest rates often start out lower, they can grow over time, costing you more in total interest costs.
The lender says that most of its borrowers have credit scores between 600 and 700, but it doesn't disclose a minimum score to get approved.
Fast Funding and Flexible Repayment Options
You can get approved for an Avant loan in as little as a few minutes, and once you're cleared, you can get funding as soon as the next business day. That can be incredibly helpful if you're using the proceeds to cover emergency expenses.
Additionally, the lender offers flexibility with its repayment terms, giving you 12 to 60 months to pay off the debt. However, your options may be limited based on where you live and your creditworthiness.
Prequalify With No Credit Impact
This valuable feature allows you to get an idea of your approval odds and what terms you might get if you apply with just a soft credit check, which doesn't affect your credit scores.
Keep in mind, though, that it's just an initial quote. Your actual approval and loan terms will be based on a hard credit check when you submit an official application.
How to Qualify for an Avant Personal Loan
Avant says that most of its borrowers have credit scores ranging from 600 to 700, but the lender doesn't provide a lot of details about eligibility criteria beyond that. Fortunately, you can go through the prequalification process to gauge your approval odds before submitting an official application.
If you can't get approved on your own, the lender doesn't allow cosigners or joint applicants, so you'd need to work with a lender that offers that option. Alternatively, you could take the opportunity to improve your credit score and other factors, such as your debt-to-income ratio (DTI), and try again at a later date.
Avant Personal Loan Fees
As you compare your options for a personal loan, it's important to understand all of the potential costs you'll incur, especially fees that you can and can't avoid. Here's what to expect with Avant:
- Administrative fee: Similar to an origination fee, Avant deducts this charge, which can be as much as 4.75% of your loan amount, from your disbursement
- Application fee: None
- Prepayment penalty: None
- Late fee: Varies by state
So you know what you're getting with your new loan, review the account fees and other stipulations before you sign a loan agreement.
How to Apply for an Avant Personal Loan
Before you apply for a personal loan with Avant, shop around and compare interest rates, repayment terms, fees and other features with other lenders to ensure you're getting the best deal available to you.
If you decide to move forward with Avant, start by requesting a rate quote. Again, this process doesn't require a hard credit inquiry, and there's no commitment to accept the terms of your quote. You'll need to provide the following details:
- Full name
- Date of birth
- Social Security number
- Housing status, cost and history
- Email address and phone number
- Income and source
- Desired loan amount and purpose
If you received a mail offer, you can also provide your code during this initial process. Submit your information and, if you're eligible, Avant will provide some offers. If you continue the process, the lender will run a hard credit inquiry to provide you with a final offer. A hard inquiry can have a small, and temporary, negative effect on your credit score. A single inquiry is unlikely to have much of an impact, but multiple inquiries can have a compounding effect on your score. To reduce credit score harm, submit all loan applications within the span of a few weeks, as credit scoring formulas will only consider these as one inquiry as far as your scores are concerned.
When you submit your application, Avant may also require documentation, such as bank statements or pay stubs, to verify some of the information you've provided. If you're approved and you accept the final offer, you may receive the funds as soon as the next business day.
|Loan amount: $2,000-$35,000||Administrative fee: Up to 4.75% of the loan amount|
|Estimated APR: 9.95% - 35.99%||Late fee: Varies by state|
|Loan terms: 24 - 60 months||Prepayment fee: None|
|Funds released: As soon as the next business day|
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†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.
A Solid Option for Fair Credit
Avant personal loans are best suited to consumers with fair credit. Not many personal lenders offer such reasonable interest rates to people with relatively low credit scores, and you may save a lot of money compared with riskier short-term financing options.
If you can't get approved on your own, though, seek out lenders that allow cosigners or joint loans. And if your credit is in great shape, you'll likely get approved for more favorable terms with other lenders.
Before you apply for a loan with Avant or any other lender, shop around and compare rates and other terms through pre-qualification offers to ensure you find the best fit for you. Experian CreditMatch™ can help you with this process by matching you with offers from multiple lenders based on your credit profile.