Last Updated on March 28, 2020 by admin
Avant loans review summary
Avant was established in 2012 in Chicago as the brainchild of young entrepreneurs looking to lower costs and borrowing barriers and do so in a web-based, streamlined environment. Avant offers personal consumer loans based on own algorithms measuring creditworthiness and performing risk mitigation. The main advantage of Avant is that the whole borrowing process is performed online. The target customer is the middle class consumer with low credit scores and no credit history taking a loan for debt consolidation. The service is currently only available in the US.
Pros of Avant
- Due to proprietary machine learning algorithms, your credit approval is not solely tied to credit score.
- There is no personal check processing fee and no prepayment penalty, so you can make payments before due date, you even have a 10 days grace period.
- Accepting lower credit scores, they offer soft credit check that does not affect your credit scores.
- There is a late fee forgiveness policy, refunding the late payment penalty after 3 consecutive on-time payments.
- Funds are deposited the next business day for every credit approved before 4.30 PM CT.
- You are able to make payments in their special app and follow your account.
Cons of Avant
- The APR varies between 9.95% and 35.99%, the higher end could be considered too much.
- Not available in Colorado, Iowa, Vermont, and West Virginia.
Minimum Requirements
The individual eligibility is determined by the algorithms developed by Avant, but the minimum requirements were designed to fit the needs of a borrower with less than perfect score. Anything higher than 580 is considered acceptable, but the bigger it is, the lover the APR you are given. There are no specific requirements related to the debt to income ratio and to be considered you must have a gross income of at least $ 14,000 per year.
Application Process
The whole idea behind Avant is to offer a simple application process aimed at the young generation’s needs and usually you are set in a few minutes. To view your customized rates you need to fill in personal details, income data, and your social security number. If your requirement is approved you e-sign the contract and receive money the next day in your account. For any questions, they offer online support and a dedicated section of FAQs.
Credit Check
Avant uses a soft pull credit check that has no effect on your credit score to check eligibility. This method is preferable to apply to a credit card if you already have a low score.
Lending Terms
Avant loans are granted at an annual percentage rate ranging between 9.95% and 35.99%, without taking into account the administration fee which is an additional 4.75% of the loan amount. Depending on your creditworthiness you can get a better rate than at some credit cards or bank loans.
The amount eligible at Avant starts at $ 2,000 and goes up to $ 35,000 for a period ranging between 24 and 60 months. There are no prepayment fees, giving the borrower the opportunity to make early payments and end the loan, and no processing fee.
Making Payments
Payments made later than 10 days are penalized with a fee of $25, which is refundable after 3 consecutive payments made in due time. Failing to make a payment due to insufficient funds is also penalized by $15, so make sure you have enough balance before the due date. Avant gives you the opportunity to download the app available in Google Store and iTunes which offers an overview of your progress, payment calendar and more.
Final verdict on Avant loan review
Avant is an inspired solution for young people with low credit scores who are looking for personal loans. Their rates are higher than those offered by similar institutions, but the conditions are very permissive and they offer a larger maximum loan. Due to relying on their own risk assessment methods, they are a good option for those who don’t qualify for bank loans, credit cards and don’t want to lower their score further by shopping around until they get approval.
Other Avant Alternatives
| Lenders | Loan Amount | Loan Terms | Fees | Check Rate |
|---|---|---|---|---|
 |
$2,000 - $35,000 | 24 to 60 mo | Up to 4.75% of the loan |
APR: 9.95% - 35.99% |
|
$1,000 - $50,000 | 36 to 60 mo | 1% - 6% of the loan |
APR: 8.92% - 29.99% |
|
$1,000 - $10,000 | 6 to 48 mo | Not disclosed |
APR: 34% - 155% |
|
$5,000 - $100,000 | 36 to 84 mo | No fees |
APR: 5.49% - 14.49% |
|
$5,000 - $35,000 | 24 to 60 mo | 2% - 5% of the loan |
APR: 8% - 25% |
|
$2,000 - $35,000 | 36 to 60 mo | 0.99% - 5.99% of the loan |
APR: 5.99% - 29.99% |
|
$10,000 - $35,000 | 24 to 60 mo | Up to 5.99% of the loan |
APR: 4.99% - 29.99% |
|
$3,500 - $20,000 | 24 to 36 mo | Varies by state |
APR: 15.49% - 34.99% |
|
$2,000 - $40,000 | 36 to 60 mo | 1% - 5% of the loan |
APR: 6.73% - 135.36% |