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Avant Personal Loans Review

Avant offers low-cost loans to people who other lenders typically do not

By Lindsay VanSomeren

Updated February 03, 2023.

The factual information was checked by Ryan Eichler

We suggest the top products using an independent review process and the advertisers are not a factor in our picks. We could receive compensation when you visit the companies we recommend. Read our advertiser disclosure for more info.

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Investopedia’s Rating 3.7

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Our Take

Avant’s selling point isn’t its low rates, particularly if you already have good credit. However, if your credit score isn’t perfect, Avant is one of the few lenders who will assist you without costing an arm and a leg.

Top Rated For

The best for quick loan approval Best Emergency Loans for Bad Credit

Runner Up Debt Consolidation Loans for people with poor Credit

Best for Refinancing Best loans for people with bad Credit

Best for Bad Credit The best IVF loans

Ideal for people with poor Credit Most dependable installment loans

Pros and Cons

The most important takeaways

Company Overview

Specifications

Pros

Quick funding timelines

Lower credit requirements than the majority of lenders

Lower income thresholds than the majority of credit institutions

Cons

High origination fees

Interest rates are generally higher for those with good credit

Doesn’t pay creditors directly for consolidation loans

It doesn’t permit co-signers, joint applicants or collateral

Not available not available in Hawaii, Iowa, New York, Maine, Vermont or West Virginia

Why Should You Trust Us?

38

Lenders reviewed

40

Loan features considered

1,520

Data points are studied

112

Primary sources of data utilized

Investopedia collected key data points from several lenders to identify the most crucial factors for borrowers. We used this data to review each lender for charges, accessibility, repayment terms as well as other aspects to give objective, thorough reviews to ensure our readers have the best borrowing option for their needs.

Learn more about our Methodology

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overall rating 3.7

Check Rates

Table of Contents

Pros Explained

Pros and Cons Explained

Types of Loans

The time to receive funds

Borrower Requirements

Features of a Loan

Co-Signers

Refinancing

Customer Service

Customer Satisfaction

How to Apply

Alternatives

Final Verdict

Methodology

Pros Explained

Fast funding times: There are lenders with more speedy service that Avant however, not by much: If you’re approved for a loan before 4:45 p.m. Central Time, from Monday to Friday Avant is able to send your cash through ACH the following day.1

Lower credit standards than the majority of lender: Avant will approve loans for those with credit scores that are as low as 550 assuming you meet other requirements. The majority of lenders will deny you outright if your credit score is that low.

Lower income thresholds than many lenders: If you earn at minimum $1,200 in monthly income it is possible to qualify to receive an loan. Since that’s the median weekly take-home pay for Americans this means that many people stand a chance of approval when other lenders might decline them.2

Cons & Cons Explained

High origination fees: If you have bad credit one of the tradeoffs that you have to have to make by partnering with Avant is paying a greater origination cost than other lenders. On the flip side in the event that you’re a primary borrower, Avant may be able to eliminate the origination fee completely.

Interest rates that are generally higher for people with good credit score: Avant doesn’t apply to those with less credit or income. But if you have good credit, it’ll be very easy for you to locate a cheaper loan elsewhere.

Doesn’t pay creditors directly for consolidation loans When you use Avant to get an installment loan then you’ll have to pay your old creditors directly. In contrast, many other lenders will transfer the loan funds directly to the old lenders, which will save your time in repaying your previous loans.

It doesn’t permit co-signers, joint applicants or collateral. You’ll have to meet the requirements for an Avant personal loan solely on your own, without assistance from a parent, spouse or any other person on the loan. Avant does not offer secured loans that let you pledge some sort of collateral in order to get better odds at approval with less interest.

Not available in Hawaii, Iowa, New York, Maine, Vermont as well as West Virginia: Avant is available to people who live in all U.S. states, but not all states.

If you’re a credit scorer, you can likely find lower rates elsewhere. Browse our picks for the top personal loans for excellent credit to see what you may get.

Types of Personal Loans Offered by Avant

In terms of installment loans go, Avant only offers unsecured personal loans.

You can actually use Avant’s personal loans for almost anything, except for illegal activities or paying for an education at a university. Avant promotes some of the most commonly used personal loan applications on its website, however be aware that these aren’t in fact different loans since they all have the same terms and conditions.

Improvements to your home loans to improve or repair your living space, inside and out

Consolidation of debt loans to consolidate multiple high-interest debts into one loan

Emergency loans to pay for unexpected expenses like medical treatments or repairs to your car

Time to Receive Funds

If you’re approved, Avant will be able to get the money quickly. It’s able to offer next-day ACH deposit when you’re approved prior to the time of 4:30 p.m. CT, Monday through Friday. Be aware that based on your bank’s policies, an ACH deposit could take a couple of days before it’s deposited into your account after Avant sends it.1

Borrower Requirements

Avant’s main advantage is that it may be more willing to accept you for the loan even though other lenders could reject you straightaway although it’s not necessarily the cheapest option among conventional lenders. However, that doesn’t mean it’s a must for everyone to get a loan.

It’s good to know that Avant isn’t averse to divulging the details about the requirements you’ll have to satisfy in order to qualify for a loan, unlike most other lenders. Here’s what the company told us:

Minimum credit score Minimum credit score: 550

Minimum monthly net income: $1,200

Maximum debt-to-income ratio: 70%

Avant determines your debt-to-income ratio slightly differently than other lenders. To determine your ratio, add up the total amount of your monthly debt and your monthly housing installments, including rent. Divide that sum by your total monthly income. (Monthly home payments aren’t usually included in the debt-to-income ratio calculation unless it’s for a mortgage FYI.)

Avant Personal Credit Features

Change due date: You’ll be able to alter your monthly time to be easier.

Highly rated mobile application: Avant offers Apple and Google Play apps, both that are highly rated. The app isn’t able to request a personal loan however, once you’ve got one, you can utilize it to manage just about every aspect of your repayment.

Light on perks: Lenders catering to a higher-credit-profile crowd generally offer more features, like paying your creditors directly for debt consolidation, unemployment protection, or even the ability to skip a payment every so often. In comparison, Avant doesn’t offer very many advantages.

You will not get a reduction on your interest rate by signing up for autopay through your Avant loan like other lenders. Even so, it’s an excellent idea since it stops the late payment and can help you build credit automatically.

Co-Signers and Co-Applicant

Avant does not allow for co-signers and co-applicants on its loans it’s a bit strange considering it’s meant for people who might have a hard time getting approved for financing. But Avant does have less credit requirements in the first location, which makes it easier for more people to be approved.

Can Refinance a Personal Loan With Avant?

Yes. If you have an individual loan out, whether it’s from a different bank or Avant its own, then you can refinance it through Avant. It’s possible Avant can allow you to refinance at a higher rate also, should you require to take out more cash. It is possible to get a lower rate, at the discretion of Avant, dependent on the circumstances.

The business only permits you to do this two times, so choose wisely.4

Customer Service

Avant offers excellent customer service during the hours between 7:00 a.m. and 10:15 p.m. CT, Monday through Friday. Customers can also call on the weekends as well but the hours are a bit shorter, and they end at 8:00 p.m. (CT). (If it’s your first time applying for an loan and calling in for assistance, please note that customer service hours generally end at 8:00 p.m. CT for you each day, regardless.)

Here’s how to contact Avant to get help with the personal loan:

Email: support@avant.com

Phone: 800-712-5407

Private message: Log in to your account

Address for mail: Mailing address: LaSalle Street, Suite 1600, Chicago, IL 606015

Customer Satisfaction

Avant has a mixed track record. On sites like Trustpilot and on online app stores where you can get the Avant app the app has a fantastic reputation.6

However, the reviews provide a grimer picture. According to a 2022 J.D. Power survey of lender satisfaction, Avant was ranked far lower than average by customers.7 Avant maintains a 1.2-star rating of five from the Better Business Bureau, where Avant has received 652 complaints alone over the last year.8

Twenty-three customers have lodged complaints against Avant through the Consumer Financial Protection Bureau since 2017 and the company even agreed to an agreement to settle for $1.6 million brought on through the Massachusetts Attorney General. The Attorney General cited unjust debt collection practices.910

Applying to an Avant Personal Loan

The personal loan application is fairly similar to other lenders. It is possible to get pre-qualified to see whether you’re likely to get approved for the loan and, if you are the rate you’ll pay could be. This is a gentle credit pull, which won’t affect any credit scores, and therefore there’s no harm getting a quote.

The form for pre-qualification is simple to find on the Avant website. You’ll need to fill out the basic information regarding yourself, such as the amount of your monthly housing bill and income, Social Security number, as well as the contact details. From there, you’ll get an individual quote.

If you decide to go forward with your application, Avant will do a hard credit check at this point. This may cause temporary decline in the credit rating for period of time. It is also necessary to submit some documents. The details may vary based on your situation, but you can count on having duplicates of the documents that lenders commonly require:

Recent pay stubs

Bank account statements

The tax return or the transcript of the last two years (for self-employed borrowers)11

Take note that Avant might need to call your boss up to verify your employment status, but Avant will not inform them that you’re applying for an loan.

Other Personal Loan Lenders

Avant LendingPoint Upstart

APR Range9.95%-35.99 Percentage7.99%-35.99%6.5%-35.99 APR Range 9.95%-35.99%

Amount of Loan $2,000-35,000$12,000-$36,500 $2,000-$50,000$1,000-$50,000

The Loan Terms are12-60 months -24-72 months30 or 60 month

Recommended Minimum Credit Score550 Not disclosedNo credit history is required

Origination Fee 0%-4.75%0.0%-8%0%-10%

When to Receive Loan1 business day121 day of business 13One business day

Final Verdict

If you have a good credit score and income, we suggest to keep searching for a different lender when you require a loan. Some of the best personal loan lenders offer better rates, features, and customer reviews than Avant.

However, if you don’t have a good credit score and a high income, and your only option is to take on higher interest loans like a payday loan, we’d definitely recommend Avant. Although it’s not perfect, it’s not nearly as troublesome as other lenders who prey on people with fewer options. And since paying off the Avant personal loan can help you build credit if you pay your loans on time (unlike the case with a payday loan), it could be a useful way to build your credit score.

Methodology

Investopedia is committed to providing its users with objective complete review of the best personal loan lenders. To evaluate lenders we have gathered thousands of points for more than 40 lenders. This includes fees, rates of interest, loan amounts, and the terms of repayment, to ensure that our reviews assist users make informed decisions for their needs with regard to borrowing.

Article Sources

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