This Avant loan review will give you the information you need in order to determine whether or not this online lender is the right one for you. Furthermore, this review will help you understand what Avant is all about and what it does really to help people seeking financial assistance especially in times of emergencies.
We cannot run away from unfortunate financial situations. Sometimes, life will suddenly put you in circumstances that are beyond your control, and end up needing more cash than what you already have. While some people are fortunate enough to have savings to pull them through the hard days, others don’t. Thus, the need for lending companies — to borrow money, particularly for immediate needs.
There are so many online lending companies out there. In fact, too many that you will end up getting overwhelmed as to which one to choose.
One of the companies, though, that offers online lending services is Avant. Today, we are going to highlight and specifically talk about it – particularly on what it is all about, what products does it offer, and how it works.
Before we proceed to discuss about Avant, here’s an interesting fact about the loan market in the country.
In an article published by CNBC, it says that the financial technology or fintech (where Avant belongs) companies currently make up 38% of the personal loan market in the US. This is higher by 5 percent from five years ago. The data was provided by TransUnion.
This data shows that Americans today run to up and coming fintech firms instead of going to traditional banks to loan money from.
Furthermore, the article stated data still from TransUnion that the “unsecured personal loan market hit an all-time high last year, surging 17 percent year over year to $138 billion.” This, according to the report, is because of the rise of digital financial technology companies.
Well, to be honest, how can you not get into this when online lending companies make borrowing money so much easier than traditional lenders like banks.
Anyway, so going bank to Avant, which, as mentioned, is one of the many successful online lenders out there, we are going to look into it deeper. Specifically, we are going to tackle some of the most common information any borrower would want to know about this fintech institution.
Some of the things we are going to discuss are as follows:
- What is Avant?
- What Avant’s key features are?
- How to apply for Avant personal loan?
- What are the different types of personal loans offered by Avant?
- How much is Avant’s loanable amount?
- What is Avant’s APR?
- What is Avant’s loan terms?
- How to qualify for an Avant loan?
- What are the fees and charges involved?
- Does Avant have a refinancing option?
- How is Avant’s customer service?
- What are the pros and cons of using Avant?
AVANT AT A GLANCE
Before anything else, here’s quick information regarding Avant. This will help you have an idea of what Avant offers to borrowers like you, at the same time, what you can expect from the company.
|Name of Lender||Avant|
|Loanable Amount||Minimum: $2,000 Maximum: $35,000|
|Minimum Credit Score Required||580|
|APR||9.95% to 35.99%|
|Amount of Time to Receive Funds||Within one business day|
By the above data alone, perhaps you already have an idea of whether Avant is perfect for you or not. However, we recommend you go over everything first before making a decision. After all, it is just a glimpse of the entire thing that Avant offers/provides.
WHAT IS AVANT?
Avant is tagged as one of the largest online lending companies that focuses on consumers with low credit scores. It is has been contracted with Webank, which is an FDIC-insured financial institution to act as the originator of the company’s personal loans.
Founded in 2012, this Chicago-based company has already issued over 800,000 personal loans.
As mentioned, Avant aims to provide financial assistance to the “typical middle-class American consumer,” according to Adam Hughes, the company’s president.
Although most of its customers have credit scores ranging from 600 to 700, Avant requires a minimum credit score of 580 only.
Based on what it offers, we got to say that Avant is an ideal personal loan for those people with bad to fair credit scores.
Meanwhile, some of the consumer-friendly features that Avant offers include transparency of rates and fees, flexible payment options (which includes the borrower’s ability to add or change payment), and soft credit checks for pre-qualification.
Apart from a personal loan, which is our focus on today’s review, Avant also offers credit card options.
WHAT AVANT’S KEY FEATURES ARE?
Avant’s personal loan offers a few features, which include customer service support, as well as the Avant app.
The former, we will discuss further in the latter part of our Avant loan review.
Meanwhile, with regards to the Avant app, it is available for both Android and iOS phone users. You can use the app to do actions such as:
- Tracking upcoming payments
- Viewing payment history
- Receiving notifications regarding your account details
- Viewing of payoff quotes
- Making additional payments
Based on the ratings received by the app from both Android and iOS users, the Avant app seems to be very well received.
WHAT ARE THE DIFFERENT TYPES OF PERSONAL LOANS OFFERED BY AVANT?
Avant offers two major products – Personal Loans and Credit Cards. Today, however, we are focusing on the former – thus, the reason why it’s Avant loan review, obviously.
With regards to the Avant loan product, the company allows applicants to apply for personal loans for a number of reasons, which include:
- Relocation Expenses
- Debt Consolidation
- Home Improvement Projects
- Car Repairs
- Major Life Events (such as a wedding)
As you can see, Avant is pretty much flexible in terms of reasons for loaning money. You can basically borrow for any reason – as long as you can pay the amount you borrow, of course.
HOW TO APPLY FOR AVANT PERSONAL LOAN?
The application process is pretty simple. First, it involves a soft credit inquiry. This is done so the company can check what sort of terms you are qualified for. After this, you will be asked to submit a full application.
To give you a glimpse of the whole process, here are the things that you will be asked to do:
Fill out the initial application online. You will be asked to provide personal information like your address, Social Security number, the reason for the loan, income details, as well as the amount of money you are loaning for.
Review loan offers provided. Once you have selected, you will be asked to agree and create an Avant online account before proceeding to the next step.
Verify personal information. Before submitting the required documents, you will be asked to verify your personal information. A number of questions will be asked to prove your identity.
Provide required documentation. This includes documents like your contact details of your employer, as well as your proof of income.
Upon approval of your loan, you will be asked to sign your loan agreement. Once done, expect to receive your loaned money within the next business day or two via bank transfer.
Interested to know more about how you can avail of a loan from Avant? Here’s a video from Houston McMiller where you can get more ideas from. Just click the play button to watch the video:
HOW MUCH IS AVANT’S LOANABLE AMOUNT?
Avant personal loans generally anywhere between $2,000 and $35,000, which we find fair enough for a fintech company like Avant.
Meanwhile, it is also important to note that the actual loan amount varies from one state to another — depending on your state laws.
WHAT IS AVANT’S APR?
For this Avant loan review, we are also going to share with you the company’s annual percentage rate or APR. This will definitely help you in deciding whether Avant is ideal for you according to what you can afford (in terms of paying debts),
Anyway, Avant has fixed-rate loans with APRs that range from 9.995% up to 35.99%. The APR depends on the duration or length of your personal loan. Please note though that the rate mentioned does not include yet the administration fee that costs up to 4.75%.
It is also worth sharing that the best APRs go to those borrowers with good credit history. Although Avant is open for borrowers with not-so-good credit standing, they also lend money to people with good credit history.
WHAT IS AVANT’S LOAN TERMS?
Also, part of this Avant loan review is checking or looking into this online lender’s lending terms.
Avant offers unsecured loans, which amounts from $2,000 up to $35,000. However, minimum loanable amounts vary from one state to another depending on the state laws as we earlier mentioned.
Generally, the terms you qualify will depend on the state where you live, as well as your creditworthiness. Avant’s loans come with repayment terms, which range from 24 to 60 months. But, like any other lenders out there, you are absolutely free to pay off your loan anytime you want — as early as you can. Unlike other online lenders out there, Avant does not charge a prepayment fee.
The good thing about paying off your loaned money early is that it will help decrease the amount you will have to pay in interest over the term of your loan.
By the way, approved loan applications receive their money within the next business day or two.
HOW TO QUALIFY FOR AN AVANT LOAN?
Of course, like any other Avant reviews out there, we are also going to share with you one of the most important aspects of borrowing money — the qualifications or requirements.
The online application with Avant is very simple to follow. However, you have to be prepared with the documents you need when applying for a loan. These documents include:
- Personal information (such as address, phone number, email, and Social Security number)
- Monthly net income
- Monthly housing payments
- Loan amount
- Credit score
- Loan reason
Before we move on, allow us to give highlight the credit score requirement. It is important to take note that Avant does not list an across-the-board minimum credit score requirement. In fact, the company states that credit scores are considered in context with the borrower’s overall financial profile.
Avant, however, mentioned it on their website that while they are not particular with a specific credit score, most of their approved loans have credit scores that range from 600 up to 700.
Going back to the requirements for borrowers, here are a few more:
- Must be at least 18 years of age
- Have a valid identification
- Have access to a bank account that is accepting ACH (or electronic) transfers
Once your loan is approved, Avant has an online calculator that displays a chart with individualized options, which includes fixed monthly payments for various loan lengths, as well as its corresponding interest rate.
You will then have to select a repayment option. Once done, you will see the details, which include the total amount of the loan, the subtracted application fee, as well as the total amount deposited into your bank account.
To complete the transaction, you will need to sign your loan electronically. You will also be asked to provide your bank information where the loaned money will be deposited. You can choose either automatic monthly debits or remotely created checks.
Please note though that while checking your loan options won’t affect your credit score, it will, however, urge Avant to do a hard credit check, which may affect your credit score.
WHAT ARE THE FEES AND CHARGES INVOLVED?
Another important thing that you need to consider as a borrower is the company’s fees and charges. As a borrower, you do not want to get surprised by fees and charges, right?
Having said that, here are some of Avant’s fees and charges/penalties:
Avant charges an up to 4.75% administration fee (this goes with your loan amount)
A late fee amounting to $25, plus an additional $15 if you do not have enough money in your bank account to cover your monthly installment/payment
Apart from the above-mentioned fees and charges, nothing else follows. If you come to think of it, Avant has very few fees and charges as compared to other online lenders out there. This perhaps is one of the reasons why the company has earned its spot in the online lending industry.
DOES AVANT HAVE A REFINANCING OPTION?
According to Avant, some of their customers may be eligible to refinance their loans for a higher loan amount. More so, they can have it on a possibly reduced rate.
However, to qualify for loan refinancing, you have to make payments for at least six months on your loan.
HOW IS AVANT’S CUSTOMER SERVICE?
As mentioned, Avant is an online lender. Thus, it is normal that borrowers or customers look into their customer service support. This is to ensure that should they encounter problems or concerns or have questions regarding their loans, they have someone to talk to.
Good thing, Avant do have a few options with regards to customer service support. Borrowers may get in touch through their email support, or make a call during office hours (including weekends) from 7 in the morning until 8 in the morning (CST).
While they cannot claim they’re the best in this aspect, the company says they continue to improve their response time and overall customer service support.
WHAT ARE THE PROS AND CONS OF USING AVANT?
Our Avant loan review will not be complete without us sharing with you our list of pros and cons.
Here are some of the highs and lows that we found on Avant so far:
- Low minimum credit score requirement
- Refinancing option available
- Offers flexible payment options
- Very efficient mobile app (It allows you to see your payment history and manage upcoming payments. Needless to say, it is highly rated on both Apple App Store and Google Play.)
- No prepayment penalties
- Ability to receive funds quickly
- Does not offer to co-sign or secured loan option
- Does not offer direct payment to creditors intended for debt consolidation
- High APR caps compared to its competitors
- Charges fees like late payment dishonored payment, as well as administration fees
- Low maximum borrowing amount compared to other online lenders
FINAL THOUGHTS ON AVANT LOAN REVIEW
There are a lot of online lenders out there, and to be honest, with so many options out there, it is really hard to pick one. However, if you are someone whose credit history is on the sketchy side, we have to say that Avant could be your perfect choice.
As we have mentioned earlier, the company offers more competitive rates compared to other lenders who cater to customers in the fair credit category.
While we Avant has its share of imperfections, the highs overpower them. For one, we like the fact that you can get your loaned money as quickly as one business day. Also, we like how efficient the Avant app is, which allows you to manage your personal loan anytime, anywhere.
Again, Avant is ideal for those with sketchy credit history. If you are someone with good credit score though (pertaining to those with 700 and above credit score), Avant personal loan may not work for you that well given the fact that it has mandatory fees plus high minimum APR. Compared to its competitors, they’re quite more expensive.
Having said all that, do you find yourself loaning through Avant? Do you think you and Avant are a perfect match?