Borrowize's Take: Good alternative for borrowers with limited options
Avant loans can be a good option for borrowers with poor to average credit that find themselves in a cash crunch or facing an emergency expense. However, if you have a credit score of 700 or higher and/or have a high earning job, you're likely to find a cheaper rate with another online personal lender or credit union.
Similarly, if you want to build credit or improve your current score, a secured credit card can be a cheaper alternative than an Avant loan with an APR on the high range, which can be as high as 35.99%. But keep in mind that a secured card will require an upfront deposit that's usually equal to the credit limit you'll receive, which can seem counter-intuitive if you're applying for a loan because you need the cash right away.
On the flip side, Avant is a no-brainer when compared to payday loans. Avant offers true installment loans with fixed rate, equal and finite monthly payments, and no prepayment penalties, which means you can be debt free within a couple of years.
Avant personal loans at a glance:
Avant is one of the original and largest lending platforms in the online lending industry. Their mission is to take advantage of technology to serve non-prime borrowers that cannot qualify for credit at traditional banks or other prime online lenders.
- Loan Amounts & APRs: Avant offers loans of $2,000 - $35,000 with fixed APRs between 9.95% and 35.99% that charge equal monthly payments over a 2 to 5 years
- Loan Uses: Pay off credit card debt, home improvement project, or major life event (wedding, travel, etc.)
- Fees & Fine Print: A 4.75% origination fee is tacked on to every loan that's made, which means the borrower receives only 95.25% of the amount she requested, but has to pay the full 100% back. Avant also charges an average late fee of $25, though it varies by state. The late fee is excessive, considering that the average sized loan will have a monthly payment of $80 - $150, so $25 amounts to 15% to 30% of your payment.
Avant is a good fit for:
Avant loans are good for people with poor-to-average credit (580 – 700 FICO) making more than $40,000 and living in any U.S.. state except Colorado, Iowa, West Virginia, or Vermont.
Paying above 25% APR is only recommended if you need the money for emergency expenses and have no other options. If you do take out a loan with a high APR, we recommend that you try to pay it off before the end of the term, or refinance it with a lower interest rate loan if your situation improves.
Avant is NOT a good fit if you have good to excellent credit and can qualify for a low interest rate loan. Avant's APRs can be as high as 35.99%, so even an average credit card is cheaper than half the loans Avant offers, as long as you stick to a strict repayment plan and don't just pay the minimum monthly payment.
Avant offers quick funding and reliable customer service
Their platform is easy to navigate, the application is straightforward, and the customer service consistently receives high marks. The online application process can takes a few minutes and borrowers can receive funds as quickly as the next business day if all documents are provided on time.
How to apply for an Avant loan:
The Avant personal loan application process is quick, straightforward, and can be done entirely online. You can check your loan options without impacting your credit score by using their online application. To do so, you will need to create a user profile and provide some basic personal information, such as:
- Home address and
- Monthly rent or mortgage payment
- Date of birth
- Social security number
- Monthly income type and amount
- Loan purpose
Once your application has been verified, you can review and sign the final loan agreement electronically, and your funds can be deposited as quickly as the next business day.