Whether you’re opening a business, consolidating debt or planning a big purchase, this Avant loan review may help you get the capital you need.
Finding a lender who can help you fund your goals isn’t always easy, however. But this Avant loan review should make it simple to get better educated about one of 2019’s highest-visibility lenders. Here’s what to know.
Avant offers a range of products geared toward individuals who have low credit scores. Like many lenders in this sector, the company focuses on serving consumers who run into unexpected financial emergencies. It’s also known for catering to people who want to consolidate their debts.
What kinds of things do most people expect from Avant? This lender has earned a reputation for its
- Startup culture, early funding successes,
- Transparent operating practices,
- Flexible loan lifetimes
- Ranging from two to five years, and
- And accessible qualification terms
To qualify for a loan, you’ll need to make an annual income of $20,000 or more. Although state minimum loan laws vary, Avant offers funding options that range from $2,000 to $30,000. It also lends at standardized annual percentage rates, or APRs, that fall between 9.95 percent and 36 percent. Need a place to park your money? Check out the best business checking account.
Avant loan APRs vary between 9.95 percent and 36 percent.
All Avant loans are issued by WebBank, an industrial bank with FDIC insurance and state insurance.
Avant services the accounts and offers consumer credit products. If you get a loan from them, Avant is your point of contact even though your statements might say WebBank.
About Avant Loans
Avant’s youth makes it unique among successful consumer-oriented financial services companies. Founded in 2012, it soon earned recognition and backing thanks to its use of novel lender evaluation technology.
In addition to being an early leader in algorithm-powered creditworthiness decisions, the company originated more than $1 billion in loans within its first three years of operation.
Like many personal loan enterprises, Avant hasn’t always enjoyed smooth sailing. In April 2019, the firm said that it would pay almost $4 million in fines after the Federal Trade Commission accused it of deceptive practices and telemarketing violations.
Regulators claimed that Avant made unauthorized withdrawals from its customers’ bank accounts and continued accepting payments after loans should have closed.
Avant Loans: What You Need To Know
Are Avant’s troubles merely the growing pains of a startup that grew too fast? Don’t go through the detailed online application process before looking at the specifics:
1. Flexible Loan Terms
Avant offers some accommodating loan perks. You can make due date adjustments with relative ease, although doing so might impact how your daily interest stacks up. It’s also easy to manage your account without having to speak to anyone.
2. Low Annual Percentage Rate
Avant’s relatively low APRs only tell part of the story. Your APR changes with time because it includes the compound loan interest and fees. Borrowers with lower credit scores often pay more for the same loan amounts than their higher-scoring peers would. In other words, your repayment habits influence the effective APR ranges of your loans.
3. Avant Administration Fees
According to the IRS, the initial origination fees a lender charges for processing a loan count as prepaid interest. Although certain taxpayers can deduct such expenses, they’re still an extra upfront cost.
Most Avant loans include an administration fee up to 4.75%
Avant initially made headlines as a fee-free lender. Today, its loans all seem to include administration fees of up to 4.75 percent — virtually the origination fee under a different name. This percentage is a maximum, however, which is useful if you have a high-interest loan.
4. Convenient Lending Platform
One of Avant’s most notable trademarks is that it caters to the modern consumer.
Unlike many lenders of its size, it does the majority of its business via the internet. How does Avant stack up to similar online lenders?
There are pros and cons. Companies like Lending Club also target the internet-savvy demographic, but they don’t provide quite as many loan options or services.
Avant doesn’t have as many partners as a brokerage like LendingTree, but its dedicated customer service might offset the smaller product selection.
These factors may prove especially beneficial for people who want to work towards building good credit scores. You also get lots of good tools for staying on top of things. For instance, there are Avant mobile apps for Android and iOS. Those who download and sign in can manage their balances, set up notifications, and communicate with customer service.
No Prepayment Penalties
Many lenders charge borrowers a prepayment penalty for satisfying their loan balances ahead of time. These fees can account for a few months’ worth of interest or a big percentage of your remaining balance. Avant won’t penalize you for trying to get ahead of your credit history by prepaying.
Late Payment Fees
Unable to make your Avant loan payments on time? You’ll pay about $25 extra, although the actual total may vary by state. This penalty isn’t too severe compared to the late fees that some loan-makers and banks impose.
Avant Loan Review Process
In many cases, applicants have to go through a hard credit check to get a loan. Each of these inquiries significantly lowers a consumer’s score.
But Avant’s soft inquiry process is particularly nice if you want to apply for multiple loans. In addition to leaving your score as-is, the company’s soft credit checks won’t be visible to other institutions that pull your credit history.
Online Lending for Average Credit
Credit requirements are the bane of loan-seeking consumers. Avant loans specifically cater to individuals with low FICO scores and bad credit histories.
Of course, no lender is perfect, so consider the APR offer you receive from Avant carefully. If it’s too steep, then you might benefit from
- Taking out an even smaller minimum loan at another institution and paying it off to boost your score,
- Closing a few credit cards or bank accounts that you don’t use,
- Applying to refinance your existing loans and establish a track record of on-time payments,
- Reaching out to the credit bureaus to get errors removed from your credit report.
Even if you don’t take such drastic actions, you might still be able to get an Avant loan. The company typically approves people with credit scores in the 600 to 700 range, but it may go as low as 580.
Avant Loan Review: Conclusion
With its low minimum credit score requirements, next-day approvals, and flexible due dates, you might be ready to hand Avant your social security number. Don’t kick things off just yet, however.
Before dialing Avant’s lending phone number — 800-712-5407 — it may be wise to extend a few feelers out into the landscape. Other loan companies might offer credit products that complement or outperform Avant’s options. Always do your research before diving into a loan application.
Don’t be afraid to get in touch with different institutions. Reach out to ask your chosen lenders if they offer exclusive deals for your unique circumstances.
Did this Avant review make you feel like a smarter consumer? Are you already dreaming of how you’ll tackle your next home improvement project or big purchase? Tell us about your lending situation, and stay tuned for more excellent credit-building resources.