Avant Personal Loan Reviews Highlights
Before settling down on a decision regarding a personal loan with Avant, it is important that you look at what other users and expert reviewers have to say about it. It is better to be sure about what you are getting into than to be sorry later.
Avant Personal loans target borrowers whose credit scores are low, those who want to consolidate their debt, and those who simply need funds for other expenses.
This may be a great option for you if:
- Your credit score is 580 or higher (the average credit rating is 600 to 700)
- Your gross annual income is at least $20,000
- You want a flexible loan repayment terms.
A borrower can take out an Avant personal loan between $2,000 and $35,000 and the APRs range between 9.95% and 36%. The terms are flexible, ranging between 24 and 60 months. You do not have to pay a repayment penalty, neither will you have inflated payments at the end of your term.
Prior to taking out a loan with Avant, you may be charged an administrative fee, included in the calculation of your APR. The administrative fee could be anywhere between 1.75% and 3.75% of the total loan amount, usually deducted from your funds before they are disbursed to you.
The positive part of this is that you do not have to be worried about paying the fee out of your pocket; however, you need to always remember to include it in your budget.
The History of Avant
This online lender was originally known as AvantCredit at its launch in 2012. The company’s first loan facility was issued in February 2013 in Chicago.
Its primary focus is on debt consolidation. According to the lenders’ statistics, 50% of its borrowers take out loans for this purpose.
It also considers issuing funds to cater for costs for home improvements as well as emergencies. The most striking feature about it is that it works with borrowers whose credits are poor.
So far, the company has issued loan amounts of up to $3.5 billion to 600,000 borrowers since it launched its products and services.
The lender has also, over several years in the past, received a lot of industry recognition such as taking the 6th position on Forbes’ list of “America’s Most Promising Companies” in 2015 as well as taking position 5 on the list of the fastest companies to reach a valuation of $2 billion in 2017 by Pitchbook.
Application Process and Requirements
The best place to start from is Avant’s Soft Pull option whereby you check your loan options before applying for a loan to select your rate. Thereafter, they will do a hard pull on your credit as you make the official application.
If you are self-employed, you may qualify for an Avant loan by providing two years of full tax returns as proof of income, instead of your W-2 paperwork. This will help the lender to verify your annual income and gauge whether you are eligible for a loan or not.
When applying for a loan, you need to come with some basic information such as your name, Social Security number, and address. You will also need to take your pay stubs from the past 30 days. Further, you may have to provide your driving license and any other documents as proof of citizenship or resident permit should the above documents be considered to be insufficient.
To qualify for a loan, you must also have a savings or checking account that allows you to do automatic payments. It must be a personal account. Business accounts are not accepted at the moment.
The minimum credit score is 580.
Determination of the minimum credit history is based on various factors but the average credit score is between 600 and 700.
You must provide your bank account, whether you are a W-2 or 1099 worker. You also have to include your routing and account numbers. This information alone may be used to verify your income without having to scan your pay stubs and taxes. However, the real information will be available when you apply.
Upon application, you will receive an offer for a rate which you may accept or decline. If you accept it, a hard pull will be done on your credit for a final confirmation of your details.
If everything goes well, and you get approved, you could receive the loan amount into your account as early as the following day.
During the hard pull on the onset of the official application process, all three credit bureaus (Equifax, Transunion, and Experian) are checked. Avant also uses authentication that is knowledge-based (they’ll ask tough questions that will only be known to you) to verify your identity.
Upon approval, you will receive a minimum of one loan option. This will have information such as how your monthly payments will look like. It will be on a variety of loan terms and various APRs.
In most cases, a shorter repayment period presents a lower interest rate. At that point, you can proceed to accept the loan offer of your choice and convenience. It is important to note that, at this point, you are under no obligation to take a loan if you do not want to.
After choosing and accepting the loan terms as well as providing your bank account information, the funds are usually sent the next business day. The specific time of receipt of the funds into your account is determined by your individual bank.
Managing Your Loan
It is easy to manage your loan through the lender’s online dashboard. You may also download a smartphone app which is available for easy access and tracking of your loan balances, payment schedules, and progress.
It is important that you familiarize yourself with the late fees policy, just in case you find yourself missing a payment. This is usually charged depending on the state that you live in. However, there may also be a fee of $15 in cases where a payment happens to be returned unsuccessfully.
Should you miss a payment, there is a special program called the late fee forgiveness program. This means that if you miss a due date, you will be charged a late fee, but upon making three consecutive payments on time thereafter, you will be refunded the late fee.
You will also access debt management assistance with online resources through Avant’s ReadyforZero. Further, you will access your Vantage Score freely to enable you to track your credit score and see how it is improving.
Should you need more money, you will be unable to apply for a new loan with Avant until you fully pay off the original one. You have an option to apply for refinancing of the loan. This offers an opportunity to access more funds and the interest rate is likely to be lower.
All these features offer convenience to Avant to borrowers who need debt consolidation options.
Considerations before Applying for a Loan
So far, the Avant personal loan is a good facility to go to. Taking out a loan comes with its advantages and disadvantages. It is, therefore, important that you consider carefully before taking out a loan with Avant. Some of the main issues to consider or questions to ask yourself include:
Where does your debt load stand currently
Before you decide whether to take a personal loan or not, take a good look at your existing debt. Ensure that you will not have to use all your income to pay your debt. Remember, you may get other financial obligations that need to be sorted. Remember that a personal loan is likely to affect whether you will get approved for other loans or not. It may also affect the kind of interest rates that you will be offered. That said, the con of this one is that paying loans on time every month will help improve your credit score which, in many cases, is used to determine whether you qualify or not.
In a nutshell, having several debts may make some lenders have reservations as far as lending you more money is concerned. Also note that installment loans such as personal loans, car loans, and mortgages are better in cases where you intend to take out other loans, compared to revolving debt from credit cards.
You will also need to note that secured loans are looked at more favorably than unsecured ones by lenders. For instance, a mortgage has an asset backing it (the house) in the same way that a car loan is backed by the car. On the other hand, a personal loan has no backup, therefore, less favorable for lenders. It is also important to note that what you spend the funds on can make some difference or exceptions to this particular rule.
Do You Really Need That Loan?
Go through your financial needs. Do you really need a loan to meet them? Try to look around and see if there are other alternatives to taking a loan that will not affect your credit.
If you feel that you need the loan to achieve the financial goals, sit down and consider what exactly you need the loan for. This is necessary because most lenders, including Avant, will need to know exactly what you need the funds for, and you have to keep your word by using the finances for the stated purposes.
This implies that because you feel that you are broke, that does not give you the go-ahead to apply for a personal loan.
Most loans require that you continue to pay for them long after you have finished using or spending the funds. Make sure that this will be a comfortable arrangement for you.
Considering all the factors that affect your finances, presently and in the future, may not be easy.
The ultimate measure would be: should you feel that taking out a loan will add more value to your life. And you can afford to pay it, you can freely and comfortably look into the option of working with Avant.
Many people who take out Avant loans intend to use the funds to consolidate debt by paying off their credit cards. They then pay off the loan over a given period of time at a lower interest rate. This is because Avant’s rates are fairly competitive and their debt management tools are also effective.
Putting all factors into consideration, look at a number of options for debt consolidation available to you before settling on the one that fits you best.
For example, if you intend to pay all your debt within a year, then transferring your credit card balance to a low-interest card would be the best option. In such a case, Avant would come in handy because you would track your credit score through the online dashboard and gladly watch your balance reduce overtime!
The ReadyforZero app will also help you with tracking and visualizing your progress, a great way to help you if you are struggling with debt.
Pros and Cons of an Avant Personal Loan
Like any other product or service, an Avant personal loan has its pros and cons. Some of them include:
|1. Fast access to your funds. Avant disburses your funds the next day after your application is approved||1. You must link your bank account. If you are uncomfortable linking your (savings and checking) accounts to Avant for automated payments, this is a con because the linking is a mandatory requirement.|
|2. Favorable interest rates for lower credit scores. Compared to other lenders offering loans to borrowers with lower credit scores, Avant’s interest rates are average. Remember, those with lower credit scores are always likely to be on the higher end of the interest rates range.||2. Not the best option for higher credit scores. In case you have a higher credit score, there are other lenders who like to work with borrowers with better credit history. Avant’s starting rates are 9.95% for those with better scores, way too high compared to other lenders.|
|3. No penalties on repayment. If you pay off your Avant personal loan early, you will save your interest and incur no fee for repayment||3. Originating fee. It is not disputed that Avant’s originating fee is lower than some of their competitors. However, having that fee in the first place gives a negative there. Unfortunately, it is almost impossible for those with poor credit to find lenders that do not have it.|
Comparison of Avant with other lenders
Avant’s loan rates can be compared to those of other creditors such as Mariner Finance and OneMain Financial who also accept low credit scores. Unlike the others, Avant does not have an option for secured loans or co-signed applications.
Summary of Reviews by Customers
A close look and analysis of Avant customers’ reviews and comments indicates a company that has given its customers a balanced experience.
A good number of customers praise the company for offering fast, reliable services and truly appreciate it.
However, you will notice that Avant still has a lot to improve in the area of customer service. Many customers have complained of lengthy approval processes, only to be denied the loans at the end.