Are you one of those who have problems getting a loan because of your bad credit rating? Fret not as Avant is here to help you. It was created to assist people with low credit scores and would like to consolidate debt. This might be for everyday expenses or even for out of the blue payments. Avant is an online lender offering consolidation loans and several other loan products. The terms vary between 24 and 60 months, and interest is calculated based on an applicant’s credit score and history. The interest rate is fixed for the life of the loan. The purpose of the loan is to provide customers with one single payment per month instead of multiple payments on accounts that accrue interest at higher rates than the loan.
Avant Company Reputation
This company is based in Chicago but operates within the USA online. Avant has been accredited with the Better Business Bureau since 2015 and maintains an A+ rating. There have not been adverse actions against the company. On most third-party review boards, Avant earns positive ratings for their business practices.
Avant Customer Service Reviews
Avant earns good overall reviews for customer service. Several borrowers reported short waiting times and being able to resolve their issues in a timely and satisfactory manner. Most reports about customer service for Avant stated that the representatives were helpful and friendly. Also, they were good about asking for numbers to call people back in the event of an accidental disconnection and following through with a return call as well.
Pros Of Avant Consolidation Loans
Loan agents typically receive excellent feedback for their helpfulness, courteousness and explanation of loan details. Those who reviewed the loan application process said that it was simple, and most people said that it was fast. According to Trust Pilot, many customers said that Avant's loan agents were efficient. The majority of customers reported a quick approval time after applying for a loan. In comparison with a typical bank loan, the process was much faster.
Cons Of Avant Consolidation Loans
One of the main cons of this consolidation loan is true of any debt consolidation loan, and that is the effect on a credit score. The drop is temporary but is to be expected with a loan. Also, credit inquiries for loan applications lower credit scores temporarily. Reviewers on Credit Karma were unhappy about the amount of time it took to raise their credit scores again after receiving a loan. Some people also reported being approved for less than what they needed to pay off their debts. Others said that the approval process seemed to take too long.
Another complaint that was voiced several times on Consumer Affairs was the interest rate of the loan. This varies from person to person, and those who have poorer credit are assigned higher rates. However, some people are able to refinance their loan after a couple years for a lower interest rate and payment.
A Look at Avant
Getting a Consolidation Loan from Avant was said by Adam Hughes, Avant’s president, the company is here to give a helping hand to “typical middle-class American consumer.” With that vision, the Chicago-based company puts an emphasis on assisting those who are in need and have nowhere else to turn to.
The primary requirements are the following:
- You have a credit rating of 580 or higher or if your borrowers’ average range is from 600 to 700
- If your yearly income is at least $40,000, do not worry though because there is no strict minimum
- Finally, if you would want some flexibility with your loan payments
For a quick reference, here is Avant at a glance:
- Typical APR 9.95% – 35.99%
- Loan amounts $2,000 – $35,000
- Time to funding: Average of two days
- Origination fee 1.50% – 4.75%
- Soft credit check with application? Yes
Being one of the largest online lending platforms, Avant tries to help people regardless of their credit rating. In fact, Avant welcomes those consumers with low credit scores as warmly as those who can borrow with ease. Proof is its competitive rates that you can easily compare to other lending companies who accept clients with a low credit rating. Another advantage is, as the fact verified by the company itself, that “half of our clients apply so for debt consolidation.”
For more liberty, Avant allows its clients to check their credit rates with a soft credit check. The good thing about this is it does affect their credit score. Clients may have to do a hard credit check after pre-approval to ensure that the information the company received is accurate.
Another positive thing about Avant is that they provide wiggle room for payments. How so? Note that if a client has missed payments by more than 10 days, he will be charged a $25 late fee. However as Avant wants to help, there may be a leeway via a late-fee forgiveness policy. The client will need to pay the other payments on time, and just like that the late fee will be refunded. See if they have a payoff credit card calculator you can use to estimate loan payments.
Avant loan requirements
- Minimum credit score: 580
- Minimum gross income: None, but generally more than $40,000
- Minimum credit history: Not provided
- Debt-to- income ratio requirement: Not provided
Company's lending terms:
- Annual percentage rate: 9.95% to 35.99%
- Loan amount: $2,000 to $35,000
- Loan duration: Two to five years
Avant fees and penalties:
- Administration fee: 1.50% to 4.75% of loan amount
- Prepayment fee: None
- Late fee: $25 after 10-day grace period
- Personal-check processing fee: None
- Unsuccessful payment fee: $15 (most states)
Before going for a personal loan, you should also first learn how personal loans work, the different ways for how to consolidate credit card debt, and, most importantly, read more personal loan reviews. Also use a credit card debt consolidation loan calculator.
How to apply for a loan:
Applying for a loan through Avant is best done via its website. Applicants have to fill in the form that will ask them to state their name, address, Social Security number and other pertinent details.
Unlike other loans, a minimum credit or an income requirement is not needed. Clients may borrow anywhere from $1,000 to $35,000. Upon approval of your loan, you may then expect the cash that you borrowed as soon as the next business day.
Competitive rates and other services
As one of the leading personal loan lending platforms in the industry today, Avant presents a doorway for getting cash to borrowers who have poor to average credit, or those who fear that they may be turned down by a bank because of their rating.
The amount you may borrow can range from $1,000 to $35,000. There are a number of personal loan providers with higher limits, but Avant should be able to adjust and provide for the majority of the borrowers’ needs.
The Avant platform charges an origination fee that ranges from 0.95%to 4.75%. These charges may come out of your loan. These types of charges are quite common, especially among personal loan providers, but there are also some companies that do not have them. Apart from that, it’s important to note that there is no prepayment fee. You would not be charged any additional fees if you pay off your loan early, which is something you get from some other lenders in order to make up for the lost income they expected from your interest payments.
Interest rates on loans vary as this depends on your credit and financial history. Interest rates are reasonable, compared to the rest of the online lending industry, as they range from 9.95% to 35.99%.
Avant offers flexible loan terms. This may range from two to five years. The available terms that you might choose from will depend on your home state and, most importantly, your creditworthiness as judged by Avant.
Once your loan application has been approved and verified, you can expect that Avant will transfer the money to your account as soon as it can. This is one of the advantages of getting a loan through a modern, online lender like Avant. Bank loans and loans from traditional lenders can take several days or even weeks to process. As a result, these loans aren’t as useful if you need the money in the short term. Customers can expect the money that they need on the next business day. However, there may be some instances when the money will take up to a week.
Borrowers can follow up on the status of their loan application by phone, email, or customer support. Avant also has mobile apps for Android and iOS devices. This application will allow you to apply for your loan, view your account details, make payments, and even update your payment schedule.
The rates which Avant offers may seem a bit high, especially higher for people with a good credit who may be expecting lower interest rates. Many personal loan lenders have rates that are closer to 5% or 6% especially for people with stellar FICO scores.
If you have a good credit score, Avant will be blunt and tell you that our company may not be your best lending option. How so? If you take out a $6,500 loan with an administration fee of 3.75% for a total financed amount of $6,256.25. This loan can be repaid in 36 monthly instalments. As a result, this would have an APR of 29.95% and monthly payments of $265.40. If you have a strong credit score you can borrow money much more cheaply from other online and traditional lending options.
Before applying for any loan, remember that monthly payments will change and it will greatly depend on the three things. These are the amount that you borrow, the length of the loan term, and your creditworthiness.
If you are unsure, you may then check your credit rating on the Avant’s website and even on the company’s mobile apps. This will give you an idea of how much you will need to pay. This will generate a soft inquiry on your credit report, but it would in no way impact your credit score.
There you will see if that your credit score is above 700, you may then view that the possible interest rate recommended for you is somewhere near to 10%. However, borrowers who have a low credit rating may expect to pay as much as 35.99% APR. When you compare it to that of some of the players in the lending industry, this may seem high but it’s still better than no options at all.
Before signing with any lender, make sure that you have checked rates from multiple companies. This will ensure that you are getting the best rate possible. Visit your local bank, visit other online lenders’ websites, and of course visit Avant, and compare the rates, such as monthly costs, which they offer. Be wary of hidden fees, and inquire if there are any other charges associated with obtaining the loan.
Avant is a reputable lending company which you can turn to for a personal loan, especially if your credit score is low and you cannot reach a traditional bank. If your credit score is good, make sure to check out all alternatives that you may find.
Is Avant The Best Choice For A Debt Consolidation Loan?
Most people who are approved for a loan from Avant have credit scores ranging between 600 and 700 and earn between $40,000 and $100,000 annually. The loan rates and fees are similar to those of other companies offering the same type of loan.
Avant may be the ideal choice for some individuals. The lender offers a convenient app and platform that makes it easy to make payments and track progress with a few taps of a screen. However, it is still important to compare at least five different options. Compare the reputations, terms, fees and loan rates of several lenders to find the best deal. Keep in mind that multiple credit inquiries usually lower a credit score temporarily. For this reason, people should apply only when they are ready to accept a loan offer. Read more: What is the best debt consolidation company to use?
Financial Advisor, MoneyBeagle
Claire is a noted financial writer and author of hundreds of articles about personal and business finance. Before getting her MBA, she graduated with a BS in Economics. Her coursework focused on the different ways that debt, debt structure, and debt restructuring affect micro and macro-economic issues.
Upon graduation, she took a job at an investment bank that worked with municipal and county governments to help them reorganize and structure their debt so they could continue to provide essential city services.
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