Avant Debt Consolidation Loan – 2021 Review

Avant offers debt consolidation loans ranging From $2,000-$35,000 and APRS ranging From 9.95%-35.99%. Loan lengths range from 24 to 60 months and there is an administration fee up to 4.75%.

Pros & Cons

Pros

  • Able to fund loans the next business day.
  • You can change your payment date.
  • 60 months loan available
  • Soft credit check.
  • Low credit score needed (580)
  • You can qualify using the income of other members of your household.

Cons

  • There is an origination fee.
  • No direct payment to creditors with debt consolidation loans.
  • Co-signers and co-borrowers not allowed
  • High starting APR for prime borrower

Where Avant stands out

You can examine the potential loan amount and rate on an Avant loan if you pre-qualify with a soft credit check. Pre-qualifying has no impact on your credit score, and it can help you figure out how loan payments fit into your monthly budget.If you proceed with a loan application, the lender will perform a hard credit pull, which may result in a few points being deducted from your score.

Fast payouts
Avant claims that the funds from a personal loan can be deposited into your account the day after your application is approved.

Change your payment date:
Avant customers do not have the option to pick their payment date at first, but they can do so up to two times during their repayment period.Other lenders may allow you to set your initial payment date or adjust it more frequently if your cash flow changes unexpectedly, such as when you start a new job with a different paycheck.

Borrowers can use the Avant mobile app to make payments, change payment dates, and view their payment history.

Where Avant fails to deliver

Origination fee
Avant may impose an origination fee of up to 4.75 percent, while the company claims that the majority of borrowers will receive an offer without it. Although not all lenders charge an origination fee, other bad-credit lenders may charge even greater fees.

No co-sign
No choice for a co-signed, joint, or secured loan:Borrowers can’t add a co-signer or co-borrower to their application, and they can’t use collateral to secure the loan.To boost their chances of qualifying, some lenders allow applicants to add someone or apply for a secured loan.

No Direct payments to creditors
If you’re consolidating credit cards or other high-interest obligations, Avant will transfer the monies directly into your account rather than paying the charges on your behalf.Direct pay is a service offered by several of Avant’s competitors, which simplifies the consolidation process.

Who Is Avant Most Appropriate For?

Avant personal loans are available to anyone with acceptable credit—scores as low as 580—unlike some prominent lenders who require credit ratings of at least 670.

This makes it a suitable choice for persons with low credit ratings as well as those looking to rebuild their credit.

It’s worth mentioning that if your score is on the lower end of the scale, you won’t be eligible for Avant’s minimal annual percentage rates (APRs), which are only available to highly qualified applicants. Except for Colorado, Hawaii, Iowa, Nevada, New York, Vermont, and West Virginia, Avant personal loans are available in all states.

Loan Amounts & Terms for Avant Personal Loan

Loan Amounts
Unsecured loans are available in amounts ranging from $2,000 to $35,000. Massachusetts, on the other hand, has a $6,400 minimum loan amount. The amount of a loan that an application is eligible for is also based on their credit history.

Conditions of the loan
Avant provides personal loans with repayment lengths ranging from 24 to 60 months.

APR.
Avant offers APRs ranging from 9.95 percent to 35.99 percent.However, an applicant’s APR will be determined by a number of factors, including creditworthiness and loan amount.

Fee for administrative services.
Unsecured loans can have interest rates as high as 4.75 percent (this fee is deducted from the disbursement amount.)

Late fees
A $25 late fee is applied to scheduled payments that are not made within 10 days of their due date.Borrowers in Idaho and Oregon will be charged a late fee of 5% of the unpaid amount of the scheduled payment, up to a maximum of $5.

Penalties for paying in advance.
Avant does not charge borrowers any prepayment fees if they pay off their loans before the term ends. This means you won’t have to pay any extra fees if you pay off your loan early.

Fee for dishonored payment.
If a payment is returned unpaid, Avant also charges a $15 Dishonored Payment Fee.This price is the same regardless of where you live.

Benefits and Features

Unlike other lenders, Avant does not market discounts or other rewards to responsible customers, as do other lenders.

How to Get a Personal Loan from Avant

A variety of criteria influence whether or not a personal loan application is granted.

Underwriting standards vary per lender, but they often include information from an applicant’s credit record as well as other elements that reflect the ability to repay the loan, such as income.

Although meeting the standards listed below does not guarantee approval, they can assist you in determining whether a personal loan is the perfect fit for you.

Requirements for Credit Scores
The majority of Avant consumers have a credit score of 600 to 700. The lender, on the other hand, has a low minimum credit score of 580, and the platform intends to deliver customized loan solutions to a wide variety of customers.Furthermore, you can confirm your eligibility with merely a mild credit check, which has no affect on your credit score.

Requirements for Income
Avant focuses on lending to middle-income customers with annual household incomes ranging from $40,000 to $100,000. However, this varies depending on the purpose of the loan, and the lender just demands a minimum of $20,000 in income. Avant will examine revenue from sources other than your major source of income, albeit this is optional (such as alimony and child support).Other members of your household’s income may be taken into account as part of the application and income verification process.

Co-applicants and co-signers
On personal loans, Avant does not accept co-signers or co-borrowers. However, while applying for a personal loan, the lender may take into account the income of other members of the applicant’s household, which can be beneficial. Additional authorized users are permitted, but this is not the same as a co-applicant and will have no bearing on the approval of your application.

What are the requirements for an Avant loan?

The following are Avant’s minimal borrower requirements:

-550 credit score (using FICO 8 and Vantage 3 scores).
-Monthly net income: $1,200, including alimony and other sources of income.
-70 percent debt-to-income ratio, including mortgage or rent payment.
-Free cash flow on a monthly basis: $500.

The typical Avant borrower possesses the following qualifications:
-Credit rating: 644.
-Net income each month: $4,000
-Before the new loan, the debt-to-income ratio was 30%.
-$2,800 in monthly free cash flow
-A three-year, $10,000 loan with a 20.5 percent APR would have $374 in monthly payments.
-That loan would cost you $3,464 in total interest.

How to Apply for a Personal Loan from Avant

Prospective borrowers can check their eligibility for an Avant personal loan on the platform’s website before applying. Provide your contact information, home data, income, the purpose of the loan, and the amount you want to borrow to check your lending alternatives.This prequalifying process includes a soft credit check, which will not influence your credit score.

If approved for an Avant loan, applicants will proceed to the verification stage, which entails verifying the information provided during the prequalification procedure.Applicants must also submit to an identity check, and some may be required to produce additional paperwork to back up their application materials.

Avant’s originations team contacts applicants in this case to request the required information.

When Will I Get My Money?

Avant’s unsecured personal loans are normally funded by ACH the next business day for candidates who are authorized Monday through Friday before 4:30 p.m. CST.

This period, however, may differ based on the borrower’s bank. The first loan payment is due roughly 30 days after the loan is funded.The payment schedule for a borrower is detailed in the loan agreement, but it can also be found on the online dashboard or mobile app.

Customer Feedback

On TrustPilot, Avant received a rating of 4.7 stars.

Borrowers who have had a good experience with the lender say the application and payment processes are simple, and it’s a good alternative for people who are rebuilding their credit.

Others have said that customer support is kind and helpful, and that their payments arrived swiftly.

The majority of Avant’s unfavorable evaluations are related to their credit card.

However, a negative Avant personal loan complaint stated that the borrower did not receive adequate updates on the status of their application.