Avant Personal Loan Review
Who is [AvantPL]Avant?[/AvantPL] Originally launched under the name AvantCredit, [AvantPL]Avant[/AvantPL] is an online lender that was founded in 2012 in Chicago. The company launched its first loan in February 2013 and has issued over $1 billion in loans to 600,000 borrowers. Avant primarily issues loans that can be used for debt consolidation, emergency expenses or … Continue reading Avant Personal Loan ReviewThe post Avant Personal Loan Review appeared first on MagnifyMoney.
Posted — UpdatedWho is [AvantPL]Avant?[/AvantPL]
Originally launched under the name AvantCredit, [AvantPL]Avant[/AvantPL] is an online lender that was founded in 2012 in Chicago. The company launched its first loan in February 2013 and has issued over $1 billion in loans to 600,000 borrowers.
Over the past several years, the company has been awarded much industry recognition, including being listed as No. 6 on Forbes’ “America’s Most Promising Companies” list in 2015, and No. 5 on PitchBook’s list of fastest companies to reach a $2 billion valuation in 2017.
Avant personal loan highlights
- Low minimum credit score requirement. [AvantCreditScore]With a minimum credit score requirement of 580[/AvantCreditScore], Avant is more likely to accept your application. Remember though that when your credit score is lower, you’re more likely to end up at the higher end of the interest rate range. The average [AvantCreditScore]Avant borrower has a credit score between 600-700.[/AvantCreditScore]
- Administrative fee. [AvantOrgFee]Avant does charge an administrative fee of 1.50%-4.75%[/AvantOrgFee] just to take out your loan.This fee will be subtracted from your total loan amount, so be sure to factor it in when calculating how much you need to borrow.
- Quick funding. You could have money in your bank account as soon as the day after you apply.
Terms24 to 60months
Avant branded credit products are issued by WebBank, member FDIC.
If you want a speedy process with your personal loan, you can’t go wrong with Avant, who could get you your loan as soon as the next business day. In terms of rates, qualifications, and repayment terms, Avant keeps things the same as most other lending options, though, it is important to shop around to secure the best offer. Avant is available in all states except: Colorado, Iowa, West Virginia, and Vermont.For Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33."
Avant personal loan details[Chart-AvantPersonalLoanDetails] Fees and penalties
- Terms: 24-60 months
- APR Range: 9.95%-35.99%
- Loan amounts: $2,000-$35,000
- Time to funding: As soon as the next business day.
- Hard pull/soft pull: A soft pull will be done initially to provide you with potential loan options. After you select your rate, a hard pull will be done on your credit as you officially apply.
- Origination fee: Administrative fee of 1.50%-4.75%
- Prepayment fee: None
- Late payment fee: $25 if your payment is 10+ days late
- Other fees: $15 fee if your payment is returned
[/Chart-AvantPersonalLoanDetails]
You can qualify for an Avant personal loan if you’re self-employed. Instead of providing your W-2 paperwork as proof of income, you will have to provide two years of full tax returns so Avant can verify how much money you bring in per year.
Eligibility requirements
- [AvantCreditScore]Minimum credit score: 580[/AvantCreditScore]
- Minimum credit history: Avant judges each application on a variety of different credit criteria, though the average [AvantCreditScore]borrower has a credit score between 600-700.[/AvantCreditScore]
You must have a checking or savings account in order to qualify for a loan with Avant. This account must allow you to do automatic payments. This account must be a personal account; Avant cannot currently lend to you if you’re using a business account.
Applying for a personal loan from Avant
Regardless of if you’re a W-2 or 1099 worker, you will have to provide your bank account information, including routing number and account number. Sometimes, Avant can use this information alone to verify your income, saving you the hassle of scanning in your taxes or pay stubs. You won’t know until you apply, though.
After you apply, you’ll be offered a rate. If you accept, [AvantInq]Avant will do a hard pull on your credit,[/AvantInq] confirming the final details. If you are approved, you could see money in your account as soon as the next day.
Pros and cons of an Avant personal loan Pros:
Cons:
- Competitive interest rates for lower credit scores. Among lenders that extend credit to those with lower credit scores, Avant’s interest rates are about average. Keep in mind that if your credit score is low, though, you’re more likely to fall into the higher end of the interest rate range anyway.
- Fast access to your money. You may be able to get your loan disbursed as soon as the next day.
- No prepayment penalty. You can pay off your Avant personal loan early — saving you interest — without incurring a fee for prepayment.
- Better options for higher credit scores. If you do have a higher credit score, Avant’s starting rates of 9.95% pale in comparison with lenders who target borrowers with a better credit history.
- Origination fee. While Avant’s origination fee is lower than some of their competitors, the fact that they have a fee at all is still a negative. If you have poor credit, however, it can be tricky to find a lender that doesn’t charge such a fee.
- You have to link up your bank account. Linking your bank account is a pretty standard way to pay your bills, and most marketplace lenders will prefer you do it this way. But if you’re uncomfortable linking your checking or savings to Avant for automatic payments, this could be a negative as it is required to qualify for one of their personal loans.
Who’s the best fit for an Avant personal loan
Among lenders who issue personal loans in this credit score range, Avant’s starting interest rates are near average. If you have a lower credit score, you should make Avant one of the companies you look at first, along with credit unions that allow you to apply online.
However, if you have a good or great credit score, you’ll likely be able to get a better interest rate elsewhere. Whichever category you fall into, you should be sure to shop around before you commit.
Alternative personal loan options
[LendingClubPL]Lending Club[/LendingClubPL]
Terms36 or 60months
LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores in the mid-600s. The loan application process is online and only takes a few minutes to complete and you can check your interest rate without hurting your credit. The loan processing time can take a while and you might not get approved if you have missed payments in the past.LendingClub is not available in Iowa and West Virginia
Marcus by Goldman Sachs®
Terms36 to 72months
If your budget is stretched thin, the fact that [MarcusGoldmanSachsPL]Marcus by Goldman Sachs[/MarcusGoldmanSachsPL] [MarcusGoldmanSachsTerm]offers a 72-month term[/MarcusGoldmanSachsTerm] may be exciting news for you as it generally means lower monthly payments. Just remember that when you stretch a loan out over a longer period of time, you end up paying more in interest over the life of your loan — even if you’re paying less per month.
[EarnestPL]Earnest[/EarnestPL]
Terms36 to 60months
Instead of offering credit-based loans, Earnest has taken a very non-traditional approach and used a merit-based system. This is great for recent graduates and those that are just beginning to establish credit. In addition, they offer some of the most flexible terms among all personal loan lenders, allowing for borrowers to get a customized loan and repayment plan that fits their financial situation.
Earnest is a better option if you have a higher credit score. Their interest rate range is lower, and [EarnestOrgFee]there are no origination or administrative fees.[/EarnestOrgFee] [EarnestCreditScore]The minimum credit score requirement of 650[/EarnestCreditScore] is significantly higher than [AvantCreditScore]Avant’s minimum of 580, though.[/AvantCreditScore]
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